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Power Grid Corporation of India Limited

Central Electricity Regulatory Commission
Oct 25, 2022
Judgment
Subsequent
References
CaseIQ
Case Information
CITATION CODES
citation codes
CASE NO.

657/TT/2020

JUDGES

I.S. Jha

Arun Goyal

P.K. Singh, Members

ACTS

SECTION 64 ELECTRICITY ACT 2003

INCOME TAX ACT 1961

SECTION 68 ELECTRICITY ACT 2003

sub-clause (ii) of clause (2) of Regulation 72

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Structured Summary of the Opinion — Petition No. 657/TT/2020

Factual and Procedural Background

This petition was filed by Power Grid Corporation of India Limited (the Petitioner), a deemed transmission licensee, seeking:

  • Truing up of transmission tariff for the period 1.4.2014/COD to 31.3.2019 under the 2014 Tariff Regulations;
  • Determination of transmission tariff for the period 1.4.2019 to 31.3.2024 under the 2019 Tariff Regulations;
  • The petition relates to a large collection of transmission assets forming the "Transmission System Associated with Pallatana Gas Based Power Project (GBPP) and Bongaigaon Thermal Power Station (TPS)" in the North Eastern Region (detailed asset list appears in the opinion).

Procedural history and key factual points (as recorded in the opinion):

  • Scope and approvals: Scope discussed in regional standing committee and other forums in 2008; prior approval under section 68 of the Electricity Act, 2003 was obtained by Ministry of Power on 24.11.2008.
  • Investment approvals: Original FR (Fund Release/Investment Approval) on 25.2.2010 (estimated cost Rs. 214,400 lakh). Revised Cost Estimate (RCE) approved 12.1.2016 (Rs. 293,288 lakh). RCE-II approved 31.3.2020 (Rs. 309,167 lakh).
  • Many individual assets were commissioned at different dates (CODs) between 2012 and 2019; prior CERC orders already trued-up or determined tariff for various groups of assets (multiple CERC orders cited and relied upon).
  • Petitioner served respondents and published notices under Section 64 of the Electricity Act, 2003; no comments were received and no replies were filed by any Respondent.
  • Hearing was held via video conference on 9.7.2021; order was reserved and the present order disposes of the petition.
  • The Petitioner filed affidavits dated 22.6.2020, 7.7.2021 and 23.7.2021; the Commission considered those submissions.

Legal Issues Presented

  1. Whether the Commission should approve the trued-up transmission tariff for the 2014-19 tariff block and determine the transmission tariff for the 2019-24 tariff block for the assets covered in the petition.
  2. Whether the capital cost claimed and additional capitalization incurred during 2014-19 (and projected for 2019-24) should be admitted.
  3. Whether the Petitioner should be allowed to recover (or refund) adjustments to Annual Fixed Charges on account of Return on Equity due to changes in applicable tax rates (MAT/CIT) directly without a fresh application.
  4. Whether filing fee and publication expenses incurred in pursuance of the petition should be reimbursed by the beneficiaries.
  5. Whether the Petitioner may bill and recover licensee fee and RLDC charges separately from respondents.
  6. Whether interest on loan adjustments due to floating interest rates during 2019-24 should be allowed to be billed/adjusted.
  7. Whether initial spares claimed as part of each project (and as project as a whole) should be allowed and in what manner (individual-asset basis for 2009-14/2014-19, combined/project basis for 2019-24 as per APTEL).
  8. Whether the Petitioner may file a separate petition for claiming overall security expenses and consequential IWC.
  9. Whether capital spares at the end of the tariff block may be claimed as per actuals.
  10. Whether GST (if levied in future on transmission charges) and other taxes/duties may be allowed to be recovered from beneficiaries.

Arguments of the Parties

Petitioner (Power Grid Corporation of India Ltd.)

  • Primary relief sought: approve trued-up tariff for 2014-19 and determine tariff for 2019-24 for the combined transmission assets listed in the petition.
  • Capital cost and ACE: Claimed capital costs for assets and additional capital expenditure (ACE) for 2014-19 and projected ACE for 2019-24, supported by Auditor's Certificates and Board approvals for RCE-II (Board meeting 28.3.2020).
  • RCE policy/process: Explained procedure of preparing RCE and RCE-II—RCE prepared at ~50% completion and again prior to anticipated completion; RCE-II prepared when project near completion; stated that overall completed cost is within RCE-II apportioned approved cost and therefore capital cost should be allowed as claimed.
  • Cost variations: Provided Form-5 explanations for cost variations for particular assets (noting reasons such as actual compensation paid, increase in line length, additional towers, increase in quantities determined by route, and compensation assessed by revenue/forest authorities).
  • IEDC and IDC: Claimed Interest During Construction and Incidental Expenditure During Construction for assets commissioned in 2014-19 and submitted computation and Auditor's Certificates; requested IEDC/IDC as per regulations and practice.
  • Initial spares: Claimed initial spares per asset and sought revision of previously allowed initial spares in light of APTEL judgment (Appeal No.74 of 2017).
  • Depreciation: Petitioner apportioned IT equipment and sought higher depreciation rate for IT equipment (15%) for truing-up 2014-19; also requested other standard tariff adjustments per regulations.
  • Other reliefs: reimbursement of filing/publication expenses; separate recovery of licensee fee and RLDC fees; adjustment of interest on loan for floating rate; permission to file separate petition for security expenses; recovery of GST if levied in future; allowance to claim capital spares at end of tariff block.

Respondents (distribution licensees, power departments and utilities)

  • No replies were filed by any Respondent(s) to the petition; the opinion records that none filed reply and no public comments were received in response to published notices.

Table of Precedents Cited

The opinion cites appellate decisions of the Appellate Tribunal for Electricity (APTEL) relevant to computation of IEDC and initial spares. (Only case-law precedents explicitly mentioned in the opinion are tabulated below.)

Precedent Rule or Principle Cited For Application by the Court
APTEL judgment dated 2.12.2019 in Appeal No. 95 of 2018 and Appeal No. 140 of 2018 IEDC (Incidental Expenditure During Construction) should be computed on actual basis after prudence check. The Commission applied this principle to allow IEDC for Assets-21 to 36 on an actuals basis after prudence check and scrutiny of the Auditor's certificates and supporting data; the opinion states that IEDC is allowed in accordance with the APTEL judgment and provides a table of IEDC allowed/disallowed per asset.
APTEL judgment dated 14.9.2019 in Appeal No. 74 of 2017 Initial spares are to be allowed as per ceiling limits on overall transmission project cost; initial spares for a project as a whole should be considered on combined project cost (where applicable). The Commission followed this principle: for 2014-19 initial spares were allowed on the basis of individual asset costs, but for 2019-24 (when assets are combined into a single Combined Asset) initial spares were allowed on the basis of the overall project cost, and the Commission adjusted treatment of PLCC and computation of initial spares accordingly.

Court's Reasoning and Analysis

The Commission's analysis proceeds in a structured, regulatory and fact-driven manner. The following summarizes the step-by-step reasoning, strictly reflecting the content of the opinion:

  1. Admissibility and procedure: The petition was served on respondents and advertised under Section 64 of the Act; no comments or replies were received. The Commission heard the Petitioner on 9.7.2021 and reserved order. The Commission considered the Petitioner’s affidavits (22.6.2020, 7.7.2021 and 23.7.2021).
  2. Scope, approvals and cost estimates: The Commission recorded the history of approvals—original IA (FR) in 2010, RCE in 2016, and RCE-II (Board approval in March 2020). The Commission acknowledged the RCE and RCE-II approvals and noted that some assets' capital cost and ACE had already been admitted in prior CERC orders; the Petitioner submitted auditor certificates supporting capital costs and ACE up to 31.3.2019.
  3. Cost over-run analysis: The Commission compared FR cost (Rs. 214,400 lakh) with capital cost claimed (Rs. 296,808.23 lakh) and noted an overall over-run of Rs. 82,408.23 lakh versus FR; versus RCE-I (Rs. 293,288 lakh), over-run was Rs. 3,520.23 lakh. The Commission took cognizance of approved RCE and allowed capital costs of Assets-1 to 36 in previous orders as noted.
  4. RCE / RCE-II policy and scrutiny: In response to a RoP the Petitioner furnished its policy on RCE preparation; the Commission recorded the Petitioner’s explanation of iterative RCE process (based on packages awarded, price variations, and % completion). The Commission observed that overall completed cost is within RCE-II apportioned approved cost for the assets named and hence considered claimed capital cost while subjecting IDC, IEDC and initial spares to scrutiny/prudence checks.
  5. Time over-run: The Commission recorded scheduled commercial operation dates (SCOD) and actual CODs; time overruns for various assets were recorded, and the Commission noted that time overruns for particular assets had already been dealt with in earlier orders (and cross-referenced those orders).
  6. Interest During Construction (IDC) and IEDC: For assets commissioned in 2009-14 those IDC aspects were already approved. For Assets-21 to 36 (2014-19) the Petitioner provided year-wise IDC discharged and undischarged, supported by Auditor's Certificates. The Commission computed allowable IDC on cash basis considering Form-9C loan details and IDC computation sheets, treating undischarged IDC as ACE in the year discharged.
  7. IEDC allowance as per APTEL: The Commission relied upon the APTEL decision (2.12.2019 in Appeal Nos. 95 & 140 of 2018) concluding that IEDC should be computed on actual basis after prudence check. Accordingly, the Commission examined Petitioner’s Form-12A and Auditor's certificates and allowed IEDC for Assets-21 to 36 largely as claimed except for minor disallowances where time overrun not condoned or in specific computation differences (tables in the opinion list allowed/disallowed IEDC per asset).
  8. Initial spares: The Petitioner sought revision of initial spares in the light of APTEL (14.9.2019 Appeal No.74/2017). The Commission applied the APTEL principle: initial spares are allowed subject to ceiling rates on overall transmission project cost. The Commission clarified treatment:
    • For assets commissioned in 2009-14 and 2014-19, initial spares were allowed as per ceilings on individual asset/project basis applicable for those periods;
    • For 2019-24 period, since assets are combined into a single Combined Asset, initial spares are allowed on the basis of the overall project cost (the Combined Asset) as per the APTEL judgment;
    • Petitioner's claim to treat PLCC as a separate element for O&M/initial spares was examined: the Commission relied on its own earlier order (24.1.2021 in Petition No.126/TT/2020) that PLCC is part of the sub-station; PLCC cost therefore was clubbed with sub-station for initial spares computation.
    The Commission computed and allowed initial spares (tables in the opinion set out claimed, ceiling, computed and allowed amounts).
  9. Depreciation: The Petitioner reclassified IT equipment at truing-up and sought higher depreciation (15%) from 1.4.2014. The Commission rejected reapportionment at truing-up: it followed its prior reasoning (order dated 9.5.2020 in Petition No.19/TT/2020) that apportionment/re-apportionment of capital cost to IT equipment at truing-up is not permitted; therefore IT equipment depreciation for the 2014-19 truing-up was allowed at 5.28% (as part of sub-station). For 2019-24, IT equipment is treated separately and depreciation at 15% on balance depreciable value is applied per Regulation 33 of the 2019 Tariff Regulations. Weighted average rates of depreciation (WAROD) were computed and depreciation allowed for 2014-19 (truing-up) and for 2019-24.
  10. Capital cost as on COD and as on 31.3.2019, ACE and admission: The Commission analysed audited capital costs, ACE year-wise, IDC and IEDC and allowed capital costs for individual assets as on COD and as on 31.3.2019. The Commission recognised certain disallowances (e.g., IDC disallowed due to computation/time overrun issues in specific cases) and allowed undischarged IDC as ACE when subsequently discharged. The Commission then aggregated element-wise admitted capital costs to form the Combined Asset for 2019-24 (with Asset-35 treated separately where required by provisos).
  11. Debt-equity ratio: For truing-up (assets commissioned prior to 1.4.2019), the Commission applied the 70:30 normative debt-equity as per Regulation 19 (2014 Tariff Regulations) for capital costs as on COD and for ACE during 2014-19, and for 2019-24 the Commission applied Regulation 18 of the 2019 Tariff Regulations (70:30 normative for projects where applicable). Detailed per-asset debt/equity splits are recorded in the order.
  12. Interest on loan (IoL): IoL for 2014-19 was computed on actual loan portfolios and weighted average rates as provided by the Petitioner (Form-9C). For 2019-24 IoL was computed on normative gross loans and repayments equal to depreciation (per Regulation 32 of 2019 Tariff Regulations), with weighted average rates of interest applied; the Petitioner’s request to allow future adjustments for floating interest rates was noted and the Commission stated such adjustments (if any) will be considered at true-up.
  13. Return on Equity (RoE) and tax gross-up: For 2014-19 RoE grossing used MAT/ effective tax rates as addressed in prior orders; the Commission adopted MAT-based gross-up rates as per its earlier order (27.4.2020 in Petition No. 274/TT/2019) for 2014-19 true-up. For 2019-24 the Commission applied Regulation 30 and Regulation 31 of the 2019 Tariff Regulations: it treated the Petitioner as liable to MAT and used the MAT-based tax rate for grossing up RoE for 2019-24 (the opinion records the tax rate used and the computed grossed-up RoE amounts and tables show RoE allowed year-wise).
  14. Operation & Maintenance (O&M) Expenses: For 2014-19 the Commission applied the norms under the 2014 Tariff Regulations (asset/element-wise computations) and allowed O&M as trued-up. For 2019-24 the Commission applied the normative O&M rates in Regulation 35 of the 2019 Tariff Regulations, rejecting Petitioner’s separate claim to treat PLCC as a separate communication system for O&M @2% (because earlier CERC findings treat PLCC as part of sub-station and CERC order dated 24.1.2021 in Petition No.126/TT/2020 held that separate O&M for PLCC is not allowed). The Commission therefore computed O&M for the Combined Asset using the sub-station bay counts, transformer capacities and line kms with the 2019 norms and allowed O&M accordingly (tables included).
  15. Interest on Working Capital (IWC): For 2014-19 the Commission computed IWC per Regulation 28(1)(c) of 2014 Tariff Regulations using O&M one month, maintenance spares 15%, and receivables two months. For 2019-24 the Commission computed IWC per Regulation 34 (2019 Tariff Regulations) using O&M one month, maintenance spares 15% and receivables 45 days; the interest rate used was SBI one-year MCLR + 350 bps (the opinion records the year-wise bank/MCLR values used and the resulting IWC rates applied and allowed).
  16. Annual Fixed Charges (AFC) determination: Based on the above components (depreciation, IoL, RoE, O&M and IWC), the Commission calculated and tabulated trued-up AFCs for 2014-19 per asset/group and determined AFCs for 2019-24 for the Combined Asset (and Asset-35 separately where treatment under proviso applied). The opinion contains the year-wise AFC numbers admitted/allowed for 2014-19 and the AFC projections/allowances for 2019-24.
  17. Other claims:
    • Filing fee and publication expenses: The Commission held Petitioner is entitled to recover filing fees and publication expenses directly from beneficiaries pro-rata in accordance with Regulation 70(1) of 2019 Tariff Regulations.
    • Licensee fee and RLDC fee/charges: Petitioner entitled to recover these as per Regulation 70(3) and (4) of 2019 Tariff Regulations.
    • GST on transmission charges: The Commission recorded that GST is not levied on transmission service at present and considered Petitioner’s prayer premature.
    • Security expenses: Petitioner had not claimed security expenses in the instant petition and sought permission to file separate petition; Commission noted security expenses for 2019-24 were considered in a separate petition (No.260/MP/2020) and therefore the prayer to file a separate petition became infructuous.
    • Capital spares: The Commission noted any claim for capital spares at the end of the tariff period shall be dealt as per 2019 Tariff Regulations at the appropriate time (truing-up).
  18. Final administrative disposition: The Commission compiled detailed Annexures (WAROD, depreciation schedules) and tabulated admitted capital costs, ACE admitted, IDC/IEDC adjustments and AFC allowed. The order records that Annexure-I and Annexure-II form part of the order and finally disposes Petition No.657/TT/2020.

Holding and Implications

Holding (core rulings)

The Commission granted the primary reliefs sought by the Petitioner subject to the detailed findings and computations in the order:

  • Approved trued-up Annual Fixed Charges (AFC) for 2014-19: The Commission allowed trued-up AFCs for the relevant assets for the 2014-19 tariff period (the opinion contains detailed year-wise and asset-wise AFC tables). Example totals shown in the order include (selected rows reproduced from the opinion):
    • Combined Asset-1 to 12 (except Asset-4): 2014-15 AFC = Rs. 6,682.97 lakh; 2015-16 AFC = Rs. 6,762.45 lakh. (Tables in the order give full annual breakdowns.)
    • Combined Asset-13 to 20: 2014-15 AFC = Rs. 1,019.53 lakh; 2018-19 AFC = Rs. 1,148.82 lakh.
    • Selected large assets (e.g., Asset-24, Asset-25) AFCs are listed in the order for each year.
  • Determined AFC for 2019-24: The Commission determined and allowed AFC for the Combined Asset (except Asset-35) and separately for Asset-35 for each year of 2019-24, as per the computations in the order. For the Combined Asset (except Asset-35) the allowed AFCs for 2019-24 were (as per the opinion):
    • 2019-20: Rs. 48,953.02 lakh
    • 2020-21: Rs. 48,578.38 lakh
    • 2021-22: Rs. 47,634.49 lakh
    • 2022-23: Rs. 46,322.29 lakh
    • 2023-24: Rs. 44,994.18 lakh
    Asset-35 AFCs for 2019-24 (each year) are listed in the order (e.g., 2019-20: Rs. 483.41 lakh; 2023-24: Rs. 469.02 lakh).
  • IEDC and IDC: IEDC for Assets-21 to 36 was allowed on actuals after prudence checks in line with APTEL; IDC admitted/disallowed were treated as documented in the order (undischarged IDC at COD allowed as ACE in the year of discharge).
  • Initial spares: For the 2014-19 period initial spares were allowed on the basis of individual asset costs (where assets commissioned in those periods), but for 2019-24, since assets are combined into the Combined Asset, initial spares were allowed on the basis of the overall project cost as per the APTEL judgment. PLCC costs were clubbed with sub-station for initial spares/O&M purposes per the Commission's earlier finding.
  • Depreciation: Petitioner’s reapportionment to show IT equipment separately and claim 15% depreciation from 1.4.2014 was not allowed for 2014-19 truing-up; IT equipment was treated as part of sub-station at 5.28% for 2014-19. For 2019-24 the IT equipment is considered separately and depreciation at 15% is applied on balance value as per Regulation 33 of 2019 Tariff Regulations.
  • Reimbursement and recoveries: Filing fees and publication expenses shall be reimbursed by beneficiaries pro-rata (Regulation 70(1), 2019 Tariff Regulations); licensee fee and RLDC charges are recoverable in accordance with Regulation 70(3) and (4) of 2019 Tariff Regulations.
  • GST: The Commission held that GST is not presently levied on transmission services; Petitioner’s request to allow prospective recovery of GST is premature.
  • Security expenses: The Petitioner’s request to file a separate petition for security expenses became infructuous because security expenses for 2019-24 were already approved in a separate petition (No.260/MP/2020) and will be shared as per that order.

Implications (direct consequences)

  • The Petition (No. 657/TT/2020) is disposed of in terms of the detailed findings and tables in the order.
  • The trued-up AFCs for 2014-19 and the AFCs for 2019-24 (Combined Asset and Asset-35) as computed in the order are admissible and will be billed/recovered in accordance with the applicable sharing regulations and tariff regulations (including the specific direction that Asset-4’s charges were borne by NTPC for a specified historical period and Asset-35 charges are borne by P & E Department, State of Mizoram till downstream COD as determined earlier by the Commission).
  • No new binding precedent beyond application of existing APTEL principles and the Commission’s regulations is pronounced; the order applies the APTEL principles on IEDC and initial spares and applies the 2014 and 2019 Tariff Regulations to perform truing-up and tariff determination.
  • Other permitted recoveries (filing/publication fee, licensee fee, RLDC charges) will be collected as provided in the regulations; GST recovery remains subject to future levy and will be addressed when applicable.

Administrative note recorded by the Commission: Annexure-I and Annexure-II appended to the order (detailed working of depreciation and WAROD) form part of the order. The order specifically states it disposes Petition No. 657/TT/2020.

End of summary. This summary is entirely based on the contents of the provided opinion and does not add or infer information beyond what the opinion itself records.

Show all summary ...

1. The Petitioner, Power Grid Corporation of India Limited, a deemed transmission licensee, has filed the instant petition for truing up of transmission tariff for the period from 1.4.2014/COD to 31.3.2019 under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 (hereinafter referred to as “the 2014 Tariff Regulations”) and determination of transmission tariff for the period from 1.4.2019 to 31.3.2024 under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 (hereinafter referred to as “the 2019 Tariff Regulations”) in respect of the following assets (hereinafter referred to as the “transmission assets/Combined Asset”) under “Transmission System Associated with Pallatana Gas Based Power Project (GBPP) and Bongaigaon Thermal Power Station (TPS)” in North Eastern Region (hereinafter referred to as the “transmission project”).

Asset-1: 1 Number 400 kV Bay of Silchar-Bongaigaon (NETC) transmission line along with 1 Number 63 MVAR Switchable Line Reactor at Silchar Substation;

Asset-2: 1 Number 400 kV Bay of Silchar-Bongaigaon (NETC) transmission line along with 1 Number 63 MVAR Switchable Line Reactor at Silchar Substation;

Asset-3: 2 Numbers 400 kV Bay of Silchar-Bongaigaon (NETC) transmission line along with 2 Numbers 63 MVAR Line Reactor at 400 kV Bongaigaon Substation;

Asset-4: 400 kV D/C Bongaigaon TPS-Bongaigaon transmission line along with associated bays at Bongaigaon Sub-station;

Asset-5: 132 kV D/C Silchar-Badarpur transmission line along with associated bays;

Asset-6: 132 kV D/C Silchar-Sirkona transmission line along with associated bays;

Asset-7: 200 MVA, 400/132 kV ICT at Silchar Sub-station along with associated bays;

Asset-8: 2 Numbers of 50 MVAR Switchable Line Reactors for 400 kV D/C Silchar-Palatana transmission line at Silchar Sub-station along with associated bays and 2 Numbers of 63 MVAR Bus Reactors at Silchar Sub-station along with associated bays;

Asset-9: 132 kV Silchar-Hailakandi transmission line upto LILO point of 132 kV S/C Panchgram-Dullavcherra AEGCL line alongwith associated bays;

Asset-10: 200 MVA, 400/132 kV ICT-II at Silchar alongwith associated bays;

Asset-11: 400 kV D/C Pallatana-Surjamaninagar line (charges at 132 kV) along with associated bays;

Asset-12: 80 MVAr, 420 kV Bus reactor at Bongaigaon along with associated bays;

Asset-13: LILO of 400 kV Misa-Kathalguri transmission line (charged at 220 kV) at 220 kV Mariani Switching Station along with the 220 kV Swiching Station;

Asset-14: 4 X 6.67 MVAR, 1-ph, 145 kV bus reactors along with associated bays at 132 kV Ziro Sub-station;

Asset-15: 1 number 50 MVA, 132/33 kV ICT-1 (2 Transformer) alongwith associated bays at 132 kV Imphal Sub-station;

Asset-16: Loop-in of 132 kV Imphal Ningthoukhong transmission line alongwith associated bays at Imphal Sub-station;

Asset-17: Loop-out of 132 kV Imphal Ningthoukhong transmission line alongwith associated bays at Imphal Sub-station;

Asset-18: 1 number 50 MVA, 132/33 kV ICT alongwith associated bays at 132 kV Imphal (New) Sub-station;

Asset-19: 1 x 20 MVAR bus reactor alongwith associated bays at 132/33 kV Imphal (New) Sub-station;

Asset-20: 20 MVAR, bus reactor at 220 kV Mariani Switching Station;

Asset-21: 220 kV, D/C Mariani (New)-Mokokchung (POWERGRID) transmission line along with associated bays at Mariani (New)-Mokokchung (POWERGRID) Sub-stations;

Asset-22: 132 kV, D/C Mokochung (POWERGRID)-Mokokchung (Nagaland) transmission line along with associated bays, 3 X 10 MVA, 220/132 kV ICT-II and 245 kV and 132 kV GIS bays at Mokokchung (POWERGRID) Sub-station;

Asset-23: 4 X 10 MVA, 220/132 kV ICT-I along with associated bays at Mokokchung (PG) Sub-station;

Asset-24: 400 kV, D/C Silchar-Imphal transmission line along with associated bays at Silchar and Imphal Sub-stations (to be charged at 132 kV);

Asset-25: 400 kV D/C Silchar-PK Bari transmission line along with associated bays at Silchar Sub-station (to be charged at 132 kV);

Asset-26: (i) 132 kV S/C (on D/C Tower) Pasighat-Roing transmission line alongwith associated bays at Pasighat and Roing Sub-station, (ii) 3x5 MVA (132/33 kV), 1-ph, ICT-I alongwith associated bays at Roing, (iii) 4x5 MVA (132/33 kV), 1-ph, ICT-II alongwith associated bays at Roing, (iv) 4x6.67 MVAR, 1-Ph, 132 kV Bus Reactor along with associated bay at Roing;

Asset-27: i) 132 kV S/C (on D/C Tower) Roing-Tezu transmission line alongwith associated bays at roing and Tezu Sub-station, (ii) 4x6.67 MVAR, 1-Ph, 132 kV Bus Reactor along with associated bay at Tezu;

Asset-28: Balance portion of 132 kV Silchar-Hailakandi transmission line along with bays at Hailakandi Sub-station;

Asset-29: 3x5 MVA, (132/33 kV), 1-ph ICT-I alongwith associated bays at Tezu Sub-station;

Asset-30: 4x5 MVA, (132/33 kV), 1-ph ICT-II (with 1 Number spare phase) alongwith associated bays at Tezu Sub-station;

Asset-31: 132 kV S/C (on D/C Tower) Tezu-Namsai transmission line alongwith associated bays at Tezu and Namsai Sub-station, 3X5 MVA, 132/33 kV, 1-ph ICT-I and 4X5 MVA, 132/33 kV 1-ph ICT-II (01 number single phase spare) at Namsai Sub-station;

Asset-32: 4X6.67 MVAR, 145 kV, 1-ph Bus Reactor alongwith associated bays at Namsai Sub-station;

Asset-33: Silchar-Melriat (New) 400 kV D/C Line (charged at 132 kV) and 2x50 MVA, 132/33 kV New Sub-station at Melriat (New) (upgradable to 400 kV);

Asset-34: LILO of 132 kV S/C Aizawl-Zemabawk at Melriat transmission line along with associated bays at Melriat Sub-station (New Scope) in place of 132 kV D/C Melriat-Melriat transmission line;

Asset-35: 132 kV D/C Melriat-Sihhmui transmission line (New Scope) alongwith associated bays at Melriat (PG) and Sihhmui (Mizoram) Substationin place of 132 kV D/C Melriat-Melriat transmission line;

Asset-36: 4x5 MVAr, 132 kV, 1-ph, Bus Reactor at Melriat Sub-station Melriat (PG) GIS Sub-station.

2. The Petitioner has made the following prayers in the instant petition:

“1) Approve the trued up Transmission Tariff for 2014-19 block and transmission tariff for 2019-24 block for the assets covered under this petition as per para 12.2 and 13.1 above.

2) Admit the capital cost claimed and additional capitalization incurred during 2014-19 and also allow the projected additional capitalization during 2019-24.

3) Allow the petitioner to recover the shortfall or refund the excess Annual Fixed Charges, on account of Return on Equity due to change in applicable Minimum Alternate/Corporate Income Tax rate as per the Income Tax Act, 1961 (as amended from time to time) of the respective financial year directly without making any application before the Commission as provided in Tariff Regulation 2014 and Tariff regulations 2019 as per para 12.2 and 13.1 above for respective block.

4) Approve the reimbursement of expenditure by the beneficiaries towards petition filing fee, and expenditure on publishing of notices in newspapers in terms of Regulation 70 (1) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019, and other expenditure (if any) in relation to the filing of petition.

5) Allow the petitioner to bill and recover Licensee fee and RLDC fees and charges, separately from the respondents in terms of Regulation 70 (3) and (4) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019.

6) Allow the petitioner to bill and adjust impact on Interest on Loan due to change in Interest rate on account of floating rate of interest applicable during 2019-24 period, if any, from the respondents.

7) Allow the Initial spares claimed as project as a whole.

8) Allow the Petitioner to file a separate petition before Hon'ble Commission for claiming the overall security expenses and consequential IOWC on that security expenses as mentioned at para 8.8 above.

9) Allow the Petitioner to claim the capital spares at the end of tariff block as per actual.

10) Allow the Petitioner to bill and recover GST on Transmission Charges separately from the respondents, if GST on transmission is levied at any rate in future. Further, any taxes including GST and duties including cess etc. imposed by any statutory/Govt./municipal authorities shall be allowed to be recovered from the beneficiaries.

and pass such other relief as Hon'ble Commission deems fit and appropriate under the circumstances of the case and in the interest of justice”.

Background

3. The brief facts of the case are as follows:

(a) The scope of the transmission project was discussed and agreed upon in 2 standing committee meeting (SCM) of North Eastern Region (NER) held on 25.6.2008 at Guwahati and 6 meeting of TCC and NERPC held on 7.8.2008 and 8.8.2008, respectively, at Gurgaon. Prior approval of the Government of India, under section 68 of the Electricity Act, 2003 in respect of the transmission project was obtained vide Ministry of Power's (MoP) letter dated 24.11.2008.

(b) The Investment Approval (IA) for implementation of the transmission project in North Eastern Region was accorded by the Board of Directors of the Petitioner in 233 meeting held on 25.2.2010 at an estimated cost of Rs. 214400.00 lakh, which included IDC of Rs. 17835 lakh based on 3 quarter, 2009 price level (communicated vide Memorandum No. C/CP/Pallatana-Bongaigaon dated 26.2.2010).

(c) The Revised Cost Estimate (RCE) of the transmission project was accorded by Board of Directors of the Petitioner in 324 meeting held on 12.1.2016 at an estimated cost of Rs. 293288 lakh including IDC of Rs. 38804 lakh based on October, 2015 price level (communicated vide Memorandum No. C/CP/RCE-PB dated 29.1.2016).

(d) The Petitioner has submitted the Revised Cost Estimate-II (RCE-II) for the transmission project and the same was accorded by Board of Directors of the Petitioner company vide Memorandum No. C/CP/PA1920-12-BF-RCE016 dated 31.3.2020 with an estimated cost of Rs. 309167 lakh including IDC of Rs. 45076 lakh, at September, 2019 price level.

(e) The scope of work covered under the transmission project in North Eastern Region is as follows:

Transmission Lines:

(i) Bongaigaon TPS-Bongaigaon 400 kV D/C Line

(ii) Silchar-Badarpur (PG) Switching Station Interconnecting 132 kV D/C line

(iii) Pallatana-Surajmaninagar (TSECL) 400 kV D/C line (charged at 132 kV)

(iv) Silchar-Purba Kanchanbari (TSECL) 400 kV D/C line (charged at 132 kV)

(v) Silchar-Melriat (New) 400 kV D/C Line (charged at 132 kV)

(vi) Silchar-Imphal (New) 400 kV D/C Line (charged at 132 kV)

(vii) Melriat (New)- Melriat (Mizoram) inter-connecting 132 kV D/C Line

(viii) Silchar-Srikona (AEGCL) 132 kV D/C Line

(ix) Silchar-Hailakandi (AEGCL) 132 kV D/C line

(x) LILO of Loktak-Imphal (POWERGRID) 132 kV S/C Line at Imphal (New)

(xi) LILO of 400 kV S/C Misa-Kathalguri Line at Mariani (New) (charged at 220 kV)

(xii) Mariani (New)-Mokokchung (POWERGRID) 220 kV D/C Transmission Line

(xiii) Mokokchung (PG)-Mokokchung (NG) 132 kV D/C line (with Zebra conductor)

(xiv) Pasighat-Roing 132 kV S/C Line (on D/C Tower)

(xv) Roing-Tezu 132 kV S/C Line (on D/C Tower)

(xvi) Tezu-Namsai 132 kV S/C Line (on D/C Tower)

Sub-stations:

(i) 2x200 MVA, 400/132 kV New Sub-station at Silchar

(ii) 2x50 MVA, 132/33 kV New Sub-station at Melriat (New) (upgradable to 400 kV)

(iii) 2x50 MVA, 132/33kV New Sub-station at Imphal (New)

(iv) 220 kV New Switching Station at Mariani

(v) 2x50 MVA, 220/132 kV New Sub-station at Mokukchung

(vi) 2x15 MVA, 132/33 kV New Sub-station at Roing

(vii) 2x15 MVA, 132/33 kV New Sub-station at Tezu

(viii) 2x15 MVA, 132/33 kV New Sub-station at Namsai

(ix) 400 kV Bongaigaon 400 kV Sub-station Extension

(x) 132 kV Badarpur (PG) Sub-station Extension

(xi) 132 kV Melriat (Mizoram) Sub-station Extension

(xii) 132 kV Mokokchung (NG) Sub-station Extension

(xiii) 132 kV Ziro (PG) Sub-station Extension

(xiv) 132 kV Pasighat (Government of Arunachal) Sub-station Extension

(xv) 132 kV Surajmaninagar (TSECL) Sub-station Extension

(xvi) 132 kV Purba Kanchan Bari (TSECL) Sub-station Extesion

(xvii) 132 kV Hailakandi (AEGCL) Sub-station Extension

(xviii) 132 kV Srikona Sub-station Extension

Reactive Compensation Line Reactor:

(i) 2x50 MVAR, 420 kV Switchable line reactors along with associated bays at Silchar (For Pallatana-Silchar 400 kV D/C line)

(ii) 2x63 MVAR, 420 kV Switchable line reactors along with associated bays at Silchar (For Byrnihat-Silchar 400 kV line and for Azara-Silchar 400 kV line)

(iii) 2x63 MVAR, 420 kV (Fixed) Line Reactor at Bongaigaon End (for Azara-Bongaigaon 400 kV line)

Bus Reactor:

(i) 2x63 MVAR Bus Reactor at Silchar Sub-station along with associated bays.

(ii) 80 MVAR, 420 kV Bus Reactor at Bongaigaon along with associated bay.

(iii) 20 MVAR, 132 kV Bus Reactor at Roing along with associated bay.

(iv) 20 MVAR, 132 kV Bus Reactor at Tezu along with associated bay.

(v) 20 MVAR, 132 kV Bus Reactor at Namsai along with associated bay.

(vi) 20 MVAR (4x6.67 MVAR), 132 kV Bus Reactor at Ziro along with associated bay.

(f) As per IA dated 25.2.2010, the transmission assets were scheduled to be put into commercial operation within 34 months from the date of IA. Therefore, the scheduled date of commercial operation (SCOD) of the transmission assets was 25.12.2012. The details of transmission project is as follows:

Asset number in previous petition Description Nomenclature of the asset in current petition COD Commission's order dated 28.3.2016 in Petition No. 553/TT/2014 and order dated 8.9.2016 in Petition No. 152/TT/2016 Asset-1 1 Number 400 kV Bay of Silchar-Bongaigaon (NETC) transmission line along with 1 Number 63 MVAR switchable line reactor at Silchar Sub-station Combined Asset-1 to 12 E-COD-1.8.2012 1.11.2012 Asset-2 1 Number 400 kV Bay of Silchar-Bongaigaon (NETC) transmission line along with 1 Number 63 MVAR Switchable Line Reactor at Silchar Sub-station 1.12.2012 Asset-3 2 Numbers 400 kV Bay of Silchar-Bongaigaon (NETC) Transmission Line along with 2 Numbers 63 MVAR Line Reactor at 400 kV Bongaigaon Sub-station 1.4.2013 Asset-4 400 kV D/C Bongaigaon TPS-Bongaigaon transmission line along with associated bays at Bongaigaon Substation 1.1.2013 Asset-5 132 kV D/C Silchar-Badarpur transmission line along with associated bays 1.5.2012 Asset-6 132 kV D/C Silchar-Sirkona transmission line along with associated bays 1.4.2012 Asset-7 200 MVA, 400/132 kV ICT at Silchar Sub-station along with associated bays 1.7.2012 Asset-8 2 Numbers of 50 MVAR Switchable Line Reactors for 400 kV D/C Silchar-Palatana transmission line at Silchar Substation along with associated bays and 2 Numbers of 63 MVAR Bus Reactors at Silchar Sub-station along with associated bays 1.7.2012 Asset-9 132 kV Silchar-Hailakandi transmission line upto LILO point of 132 kV S/C Panchgram-Dullavcherra AEGCL line alongwith associated bays 1.7.2012 Asset-10 200 MVA, 400/132 kV ICT-II at Silchar alongwith associated bays 1.7.2012 Asset-11 400 kV D/C Pallatana-Surjamaninagar line (charges at 132 kV) along with associated bays 1.7.2012 Asset-12 80 MVAr, 420 kV Bus reactor at Bongaigaon along with associated bays 1.11.2012 Commission's order dated 16.6.2016 in Petition No. 78/TT/2016 Asset-1 LILO of 400 kV Misa-Kathalguri transmission line (charged at 220 kV) at 220 kV Mariani Switching Station along with the 220 kV Swiching Station Combined Asset-13 to 20 E-COD-1.4.2013 1.4.2013 Asset-2 4 X 6.67 MVAR, 1-ph, 145 kV Bus Reactors along with associated bays at 132 kV Ziro Sub-station 1.2.2013 Asset-3.1 1 number 50 MVA, 132/33 kV ICT-1 (2nd Transformer) alongwith associated bays at 132 kV Imphal Sub-station 1.5.2013 Asset-3.2 Loop-in line 132 kV Imphal Ningthoukhong transmission line alongwith associated bays at Imphal Sub-station 1.4.2013 Asset-3.3 Loop-out line 132 kV Imphal Ningthoukhong transmission line alongwith associated bays at Imphal Sub-station 1.9.2013 Asset-3.4 1 number 50 MVA, 132/33 kV ICT alongwith associated bays at 132 kV Imphal (New) Sub-station 1.4.2013 Asset-3.5 1 x 20 MVAR Bus Reactor alongwith associated bays at 132/33 kV Imphal (New) Sub-station 1.3.2013 Asset-4 20 MVAR, Bus Reactor at 220 kV Mariani Switching Station 1.4.2013 Commission's order dated 31.3.2016 in Petition No. 398/TT/2014 Asset-I 220 kV, D/C Mariani (New) - Mokokchung (POWERGRID) transmission line along with associated bays at Mariani (New) - Mokokchung (POWERGRID) Sub-stations Asset-21 1.8.2015 Asset-II 132 kV, D/C Mokochung (POWERGRID) - Mokokchung (Nagaland) transmission line along with associated bays, 3 X 10 MVA, 220/132 kV ICT- II and 245 kV & 132 kV GIS bays at Mokokchung (POWERGRID) Sub-station Asset-22 1.8.2015 Asset-II(A) 4 X 10 MVA, 220/132 kV ICT-I along with associated bays at Mokokchung (PG) Sub-station Asset-23 1.9.2015 Asset-III 400 kV, D/C Silchar - Imphal transmission line along with associated bays at Silchar and Imphal Sub-stations (to be charged at 132 kV) Asset-24 22.3.2015 Commission's order dated 29.3.2016 in Petition No. 267/TT/2015 Asset 400 kV D/C Silchar-PK Bari transmission line along with associated bays at Silchar Sub-station (to be charged at 132 kV) Asset-25 1.8.2015 Commission's order dated 23.7.2018 in Petition No. 1/TT/2018 Asset-I (i) 132 kV S/C (on D/C Tower) Pasighat-Roing transmission line alongwith associated bays at Pasighat and Roing Sub-station, (ii) 3x5 MVA (132/33 kV), 1-ph, ICT-I alongwith associated bays at Roing, (iii) 4x5 MVA (132/33 kV), 1-ph, ICT-II alongwith associated bays at Roing, (iv) 4x6.67 MVAR, 1-Ph, 132 kV Bus Reactor along with associated bay at Roing Asset-26 12.6.2017 Asset-II i) 132 kV S/C (on D/C Tower) Roing-Tezu transmission line alongwith associated bays at roing and Tezu Substation, (ii) 4x6.67 MVAR, 1-Ph, 132 kV Bus Reactor along with associated bay at Tezu Asset-27 14.06.2017 Commission's order dated 12.6.2019 in Petition No. 177/TT/2018 Asset Balance portion of 132 kV Silchar-Hailakandi transmission line along with bays at Hailakandi Substation Asset-28 17.11.2017 Commission's order dated 20.11.2019 in Petition No. 337/TT/2018 Asset-I 3x5 MVA, (132/33 kV), 1-ph ICT-I alongwith associated bays at Tezu Sub-station Asset-29 21.1.2018 Asset-II 4x5 MVA, (132/33kV), 1-ph ICT-II (with 1 Number spare phase) alongwith associated bays at Tezu Sub-station Asset-30 21.1.2018 Asset-III(a) 132 kV S/C (on D/C Tower) Tezu-Namsai transmission line alongwith associated bays at Tezu and Namsai Substation, 3X5 MVA, 132/33 kV, 1-ph ICT-I and 4X5 MVA, 132/33 kV 1-ph ICT-II (01 number single phase spare) at Namsai Sub-station Asset-31 5.7.2018 Asset-III(b) 4X6.67 MVAR, 145 kV, 1-ph Bus Reactor alongwith associated bays at Namsai Sub-station Asset-32 14.6.2018 Commission's order dated 7.1.2020 in Petition No. 364/TT/2018 Asset-I Silchar-Melriat (New) 400 kV D/C Line (charged at 132 kV) and 2x50 MVA, 132/33 kV New Sub-station at Melriat (New) (upgradable to 400 kV) Asset-33 1.12.2018 Asset-II LILO of 132 kV S/C Aizawl-Zemabawk at Melriat transmission line along with associated bays at Melriat Sub-station (New Scope) in place of 132 kV D/C Melriat-Melriat transmission line Asset-34 1.12.2018 Asset-III 132 kV D/C Melriat-Sihhmui transmission line (New Scope) alongwith associated bays at Melriat (PG) and Sihhmui (Mizoram) Sub-station in place of 132 kV D/C Melriat-Melriat transmission line Asset-35 1.12.2018* Asset-IV 4x5 MVAR, 132 kV, 1-ph, Bus Reactor at Melriat Substation Melriat (PG) GIS Sub-station Asset-36 26.1.2019#

*COD approved under provisio (ii) of Regulation 4(3) of 2014 Tariff Regulations.

#The Commission vide order dated 7.1.2020 in Petition No. 364/TT/2018 had directed the Petitioner to submit CEA energisation certificate at the time of truing up. The Petitioner has submitted the CEA energisation certificate in the instant petition.

(g) The transmission tariff in respect of Asset-1 to Asset-12 from COD to 31.3.2014 was trued up and transmission tariff for 2014-19 was allowed by the Commission vide order dated 28.3.2016 in Petition No. 553/TT/2014 and order dated 8.9.2016 in Petition No. 152/TT/2016. The transmission tariff in respect of Asset-13 to Asset-20 from COD to 31.3.2014 was trued up and transmission tariff for 2014-19 was allowed by the Commission vide order dated 16.6.2016 in Petition No. 78/TT/2016. The transmission tariff in respect of Asset-21 to Asset-24 was allowed by the Commission from their respective COD to 31.3.2019 vide order dated 31.3.2016 in Petition No. 398/TT/2014. The transmission tariff in respect of Asset-25 was allowed by the Commission from COD to 31.3.2019 vide order dated 29.3.2016 in Petition No. 267/TT/2015. The transmission tariff in respect of Asset-26 and Asset-27 was allowed by the Commission from their respective COD to 31.3.2019 vide order dated 23.7.2018 in Petition No. 1/TT/2018. The transmission tariff in respect of Asset-28 was allowed by the Commission from COD to 31.3.2019 vide order dated 12.6.2019 in Petition No. 177/TT/2018. The transmission tariff in respect of Asset-29 to Asset-32 was allowed by the Commission from their respective COD to 31.3.2019 vide order dated 20.11.2019 in Petition No. 337/TT/2018. The transmission tariff in respect of Asset-33 to Asset-36 was allowed by the Commission from their respective COD to 31.3.2019 vide order dated 7.1.2020 in Petition No. 364/TT/2018.

(h) The Commission in order dated 22.2.2014 in Petition No. 184/TT/2011 held that the transmission charges of Asset 4 shall be borne by NTPC from 1.1.2013 till 31.3.2016 (commissioning of NTPC Bongaigaon TPS) and thereafter the transmission charges of Asset-4 shall be included in PoC pool. Accordingly, the tariff for Asset-4 has been allowed separately for the 2014-19 tariff period.

(i) The Commission vide order dated 7.1.2020 in Petition No. 364/TT/2018 has already approved the COD of Asset-35 as 1.12.2018 under proviso (ii) of Regulation 4(3) of the 2014 Tariff Regulations, due to non-commissioning of the downstream assets under the scope of P & E Department, State of Mizoram and its transmission charges shall be borne by P & E Department, State of Mizoram till the COD of the downstream transmission system under its scope. Accordingly, the tariff for Asset-35 has been approved separately for the 2014-19 and 2019-24 tariff period.

4. The Respondents are distribution licensees, power departments, power utilities and transmission licensees, who are procuring transmission services from the Petitioner, mainly beneficiaries of the Northern Eastern Region.

5. The Petitioner has served the petition on the Respondents and notice regarding filing of this petition has also been published in the newspapers in accordance with Section 64 of the Electricity Act, 2003 (hereinafter referred to as “the Act”). No comments or suggestions have been received from the general public in response to the aforesaid notices published in the newspapers by the Petitioner. None of the Respondent(s) have filed reply.

6. The hearing in this matter was held on 9.7.2021 through video conference and the order was reserved.

7. Having heard the representatives of the Petitioner and having perused the material on record, we proceed to dispose of the petition.

8. This order is issued considering the submissions made by the Petitioner in the petition vide affidavit dated 22.6.2020, affidavits dated 7.7.2021 and 23.7.2021.

TRUING UP OF ANNUAL FIXED CHARGES FOR 2014-19 TARIFF PERIOD

9. The details of the trued-up transmission charges claimed by the Petitioner in respect of the transmission assets for 2014-19 tariff period are as follows:

(Rs. in lakh)

Particulars Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Asset-4 2014-15 2015-16 2014-15 2015-16 Depreciation 1607.79 1656.29 100.58 101.77 Interest on Loan 1657.83 1567.05 108.06 99.88 Return on Equity 1780.68 1846.30 111.72 113.46 Interest on Working Capital 198.07 201.32 14.16 14.27 O&M Expenses 1482.71 1531.92 122.85 126.93 Total 6727.08 6802.88 457.37 456.31

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 Depreciation 1773.69 1779.84 1781.98 Interest on Loan 1521.08 1363.25 1202.68 Return on Equity 1977.57 1984.73 1993.40 Interest on Working Capital 216.04 215.86 215.66 O&M Expenses 1713.90 1770.86 1829.59 Total 7202.28 7114.55 7023.35

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 Depreciation 215.35 234.77 250.76 257.41 263.85 Interest on Loan 245.97 248.43 245.61 229.13 212.19 Return on Equity 249.56 273.82 293.03 300.77 309.07 Interest on Working Capital 33.37 34.99 36.32 36.88 37.45 O&M Expenses 307.82 318.02 328.57 339.47 350.79 Total 1052.07 1110.03 1154.29 1163.66 1173.35

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Depreciation 311.58 503.48 530.08 540.51 Interest on Loan 342.32 513.96 489.02 450.79 Return on Equity 331.67 537.70 567.41 580.54 Interest on Working Capital 29.67 46.62 47.70 47.73 O&M Expenses 126.40 195.92 202.37 209.15 Total 1141.64 1797.68 1836.58 1828.72

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Depreciation 104.48 180.08 192.35 199.73 Interest on Loan 123.51 200.12 193.03 182.33 Return on Equity 119.16 206.69 221.20 230.25 Interest on Working Capital 15.35 24.91 25.74 26.27 O & M Expenses 133.20 206.43 213.28 220.40 Total 495.70 818.23 845.60 858.98

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 Depreciation 30.06 56.32 59.30 60.63 Interest on Loan 33.17 58.53 55.72 51.37 Return on Equity 31.30 58.95 62.27 63.92 Interest on Working Capital 4.58 8.27 8.49 8.60 O&M Expenses 43.51 77.24 79.80 82.46 Total 142.62 259.31 265.58 266.98

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 Depreciation 65.74 2745.87 3171.81 3259.92 3271.48 Interest on Loan 79.11 3155.90 3319.61 3069.79 2791.80 Return on Equity 73.41 3081.66 3560.72 3660.79 3683.88 Interest on Working Capital 5.39 220.41 245.45 244.50 239.39 O&M Expenses 6.55 246.66 254.79 263.24 272.02 Total 230.20 9450.50 10552.38 10498.24 10258.57

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Depreciation 1365.42 2203.79 2320.94 2376.87 Interest on Loan 1604.53 2401.65 2242.39 2041.23 Return on Equity 1529.23 2468.14 2599.30 2668.95 Interest on Working Capital 111.62 175.30 177.77 176.45 O& M Expenses 145.82 225.94 233.44 241.23 Total 4756.62 7474.82 7573.84 7504.73

(Rs. in lakh)

Asset-26 Asset-27 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 2017-18 (Pro-rata for 291 days) 2018-19 Depreciation 817.60 1062.95 408.19 542.98 Interest on Loan 943.03 1130.93 443.48 539.02 Return on Equity 923.37 1203.86 460.68 614.84 Interest on Working Capital 68.61 87.10 33.24 42.99 O&M Expenses 214.41 276.12 98.82 128.15 Total 2967.02 3760.96 1444.41 1867.98

(Rs. in lakh)

Asset-28 Asset-29 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 2017-18 (Pro-rata for 70 days) 2018-19 Depreciation 32.51 108.66 7.38 39.59 Interest on Loan 32.95 101.34 7.70 39.11 Return on Equity 35.47 119.42 7.67 41.26 Interest on Working Capital 3.51 10.83 1.14 6.11 O&M Expenses 26.18 73.13 12.76 68.72 Total 130.62 413.38 36.65 194.79

(Rs. in lakh)

Asset-30 Asset-31 Asset-32 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 2018-19 (Pro-rata for 270 days) 2018-19 (Pro-rata for 291 days) Depreciation 7.67 40.87 653.49 34.80 Interest on Loan 8.34 42.19 709.11 36.52 Return on Equity 8.32 44.44 739.53 38.91 Interest on Working Capital 1.18 6.27 52.44 3.65 O&M Expenses 12.76 68.72 176.85 27.39 Total 38.27 202.49 2331.42 141.27

(Rs. in lakh)

Asset-33 Asset-34 Asset-35 Asset-36 Particulars 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 65 days) Depreciation 1279.25 28.01 39.62 11.03 Interest on Loan 1206.49 28.98 46.00 12.09 Return on Equity 1453.02 30.74 49.49 12.34 Interest on Working Capital 85.93 2.98 5.11 1.04 O&M Expenses 83.84 23.30 46.26 6.12 Total 4108.53 114.01 186.48 42.62

10. The details of the trued-up Interest on Working Capital (IWC) claimed by the Petitioner in respect of the transmission assets for 2014-19 tariff period are as follows:

(Rs. in lakh)

Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Asset-4 Particulars 2014-15 2015-16 2014-15 2015-16 O&M Expenses 123.56 127.66 10.24 10.58 Maintenance Spares 222.41 229.79 18.43 19.04 Receivables 1121.18 1133.81 76.23 76.05 Total of Working Capital 1467.15 1491.26 104.90 105.67 Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 Interest of working Capital 198.07 201.32 14.16 14.27

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 O&M Expenses 142.83 147.57 152.47 Maintenance Spares 257.09 265.63 274.44 Receivables 1200.38 1185.76 1170.56 Total of Working Capital 1600.28 1598.96 1597.47 Rate of Interest on working capital (in %) 13.50 13.50 13.50 Interest of working Capital 216.04 215.86 215.66

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 O&M Expenses 25.65 26.50 27.38 28.29 29.23 Maintenance Spares 46.17 47.70 49.29 50.92 52.62 Receivables 175.35 185.01 192.38 193.94 195.56 Total of Working Capital 247.17 259.21 269.05 273.15 277.41 Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 13.50 Interest of working Capital 33.37 34.99 36.32 36.88 37.45

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 O&M Expenses 15.80 16.33 16.86 17.43 Maintenance Spares 28.44 29.39 30.36 31.37 Receivables 285.41 299.61 306.10 304.79 Total of Working Capital 329.65 345.33 353.32 353.59 Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 Interest of working Capital 29.67 46.62 47.70 47.73

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 O&M Expenses 16.65 17.20 17.77 18.37 Maintenance Spares 29.97 30.96 31.99 33.06 Receivables 123.93 136.37 140.94 143.16 Total of Working Capital 170.55 184.53 190.70 194.59 Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 Interest of working Capital 15.35 24.91 25.74 26.27

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 O&M Expenses 6.23 6.44 6.65 6.87 Maintenance Spares 11.21 11.59 11.97 12.37 Receivables 40.84 43.22 44.26 44.50 Total of Working Capital 58.28 61.25 62.88 63.74 Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 Interest of working Capital 4.58 8.27 8.49 8.60

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 O&M Expenses 19.89 20.56 21.23 21.94 22.67 Maintenance Spares 35.80 37.00 38.22 39.49 40.80 Receivables 1400.29 1575.08 1758.73 1749.71 1709.76 Total of Working Capital 1455.98 1632.64 1818.18 1811.14 1773.23 Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 13.50 Interest of working Capital 5.39 220.41 245.45 244.50 239.39

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 O&M Expenses 18.23 18.83 19.45 20.10 Maintenance Spares 32.81 33.89 35.02 36.18 Receivables 1189.16 1245.80 1262.31 1250.79 Total of Working Capital 1240.20 1298.52 1316.78 1307.07 Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 Interest of working Capital 111.62 175.30 177.77 176.45

(Rs. in lakh)

Asset-26 Asset-27 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 2017-18 (Pro-rata for 291 days) 2018-19 O&M Expenses 22.26 23.01 10.33 10.68 Maintenance Spares 40.07 41.42 18.59 19.22 Receivables 616.02 626.83 301.95 311.33 Total of Working Capital 678.35 691.26 330.87 341.23 Rate of Interest on working capital (in %) 12.60 12.60 12.60 12.60 Interest of working Capital 68.61 87.10 33.24 42.99

(Rs. in lakh)

Asset-28 Asset-29 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 2017-18 (Pro-rata for 70 days) 2018-19 O&M Expenses 5.90 6.09 5.54 5.73 Maintenance Spares 10.61 10.97 9.98 10.31 Receivables 58.86 68.90 31.85 32.47 Total of Working Capital 75.37 85.96 47.37 48.51 Rate of Interest on working capital (in %) 12.60 12.60 12.60 12.60 Interest of working Capital 3.51 10.83 1.14 6.11

(Rs. in lakh)

Asset-30 Asset-31 Asset-32 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 2018-19 (Pro-rata for 270 days) 2018-19 (Pro-rata for 291 days) O&M Expenses 5.54 5.73 19.92 2.86 Maintenance Spares 9.98 10.31 35.86 5.15 Receivables 33.25 33.75 525.29 29.53 Total of Working Capital 48.77 49.79 581.07 37.54 Rate of Interest on working capital (in %) 12.60 12.60 12.20 12.20 Interest of working Capital 1.18 6.27 52.44 3.65

(Rs. in lakh)

Asset-33 Asset-34 Asset-35 Asset-36 Particulars 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 65 days) O&M Expenses 21.08 5.86 11.63 2.86 Maintenance Spares 37.94 10.55 20.93 5.15 Receivables 2065.58 57.32 93.76 39.89 Total of Working Capital 2124.60 73.73 126.32 47.90 Rate of Interest on working capital (in %) 12.20 12.20 12.20 12.20 Interest of working Capital 85.93 2.98 5.11 1.04

Capital Cost as on 1.4.2014/COD

11. Asset-1 to Asset-20 were put into commercial operation in 2009-14 tariff period and Asset-21 to Asset-36 in 2014-19 tariff period. The Commission vide order dated 28.3.2016 in Petition No. 553/TT/2014 and vide order dated 8.9.2016 in Petition No. 152/TT/2016 has trued up the tariff for 2009-14 and granted tariff for 2014-19 for Asset-1 to Asset-12. The Commision vide order dated 16.6.2016 in Petition No. 78/TT/2016 has trued up the tariff for 2009-14 period and grated tariff for 2014-19 for Asset-13 to Asset-20. The details of capital cost allowed as on 31.3.2014 and Additional Capital Expenditure (ACE) for 2014-19 tariff period for Asset-1 to Asset-20 are as follows:

(Rs. in lakh)

Assets Apportioned approved cost as per FR Apportioned approved cost as per RCE Capital cost claimed as on 31.3.2014 Capital cost allowed as on 31.3.2014 ACE 2014-2019 Estimated completion cost (as allowed) (as allowed) 2014-15 2015-16 2016-17 2017-18 2018-19 Commission's order dated 28.3.2016 and 8.9.2016 in Petition No. 553/TT/2014 and 152/TT/2016 ($) Asset-1 1060.18 1471.54 1169.8 1153.55 51.95 0.00 0.00 0.00 0.00 1205.50 Asset-2 1060.18 1258.98 964.01 952.53 39.48 0.00 0.00 0.00 0.00 992.01 Asset-3 2434.81 2360.59 1726.66 1726.66 166.82 0.00 0.00 0.00 0.00 1893.48 Asset-4 2413.42 2574.72 1894.45 1893.60 86.08 0.00 0.00 0.00 0.00 1979.68 Asset-5 2300.26 2195.96 1721.9 1721.17 201.25 0.00 0.00 0.00 0.00 1922.42 Asset-6 3512.15 4439.53 3354.38 3354.38 451.80 0.00 0.00 0.00 0.00 3806.18 Asset-7 2301.62 3242.57 2604.93 2604.93 221.76 0.00 0.00 0.00 0.00 2826.69 Asset-8 4746.49 4642.36 3233.67 3233.67 187.29 0.00 0.00 0.00 0.00 3420.96 Asset-9 1758.12 3169.37 2050.16 2050.16 74.16 0.00 0.00 0.00 0.00 2124.32 Asset-10 2429.64 2613.83 2146.38 2146.38 103.62 0.00 0.00 0.00 0.00 2250.00 Asset-11 8128.60 10937.02 9484.01 9481.60 383.92 0.00 0.00 0.00 0.00 9865.52 Asset-12 740.90 1433.01 1019.66 1019.66 37.95 0.00 0.00 0.00 0.00 1057.61 Commission's order dated 16.6.2016 in Petition No. 78/TT/2016 Asset-13 3095.64 2366.28 1507.31 1464.55 33.60 94.00 132.08 0.00 0.00 1724.23 Asset-14 772.89 603.05 496.61 489.52 45.41 0.00 0.00 0.00 0.00 534.93 Asset-15 555.23 605.70 245.24 245.24 20.67 1.22 75.13 0.00 0.00 342.26 Asset-16 2089.80 547.11 345.33 337.63 0.00 52.28 36.58 0.00 0.00 426.49 Asset-17 388.76 395.62 160.62 137.42 9.56 35.72 0.00 0.00 0.00 182.70 Asset-18 569.16 635.18 338.51 338.51 16.27 0.00 19.29 0.00 0.00 374.07 Asset-19 466.15 667.15 422.63 422.63 4.48 0.00 36.32 0.00 0.00 463.43 Asset-20 545.56 1218.46 656.38 656.38 8.34 28.65 0.00 0.00 0.00 693.37

($) Tariff claimed for Asset-4 : 400 kV D/C Bongaigaon TPS-Bongaigaon Transmission Line along with associated bays at Bongaigaon Sub-station from 1.4.2014 to 31.3.2016 and combined tariff for all assets except Asset 4 from 1.4.2014 to 31.3.2016 and combined tariff for all the 12 assets from 1.4.2016 to 31.3.2019.

12. Asset-21 to Asset-36 were put into commercial operation in 2014-19 tariff period. The Commission vide order dated 31.3.2016 in Petition No. 398/TT/2014 for Asset-21 to Asset-24, vide order dated 29.3.2016 in Petition No. 267/TT/2015 for Asset-25, vide order dated 23.7.2018 in Petition No. 1/TT/2018 for Asset-26 and Asset-27, vide order dated 12.6.2019 in Petition No. 177/TT/2018 for Asset-28, vide order dated 20.11.2019 in Petition No. 337/TT/2018 for Asset-29 to Asset-32 and vide order dated 7.1.2020 in Petition No. 364/TT/2018 for Asset-33 to Asset-36 has approved the capital cost as on COD and ACE for 2014-19 tariff period and the same is as follows:

(Rs. in lakh)

Assets Apportioned approved cost as per FR Apportio ned approved cost as per RCE Expenditure up to COD (as claimed) Capital cost allowed as on COD ACE 2014-2019 Estimated completion cost (as allowed) (as admitted by CERC) 2014-15 2015-16 2016-17 2017-18 2018-19 Commission's order dated 31.3.2016 in Petition No. 398/TT/2014 (*) Asset-21 8754.02 10125.59 8235.67 8110.26 0.00 934.51 381.52 0.00 0.00 9426.29 Asset-22 10637.01 4145.13 2713.28 2528.84 0.00 760.42 543.43 0.00 0.00 3832.69 Asset-23 1319.74 877.17 873.00 0.00 252.43 103.27 0.00 0.00 1228.70 Asset-24 37758.63 62130.54 46721.82 45496.77 138.30 2713.83 2924.54 3051.62 0.00 54325.06 Commission's order dated 29.3.2016 in Petition No. 267/TT/2015 (*) Asset-25 26818.07 48838.97 37920.16 37496.86 0.00 3109.20 912.28 0.00 0.00 41518.34 Commission's order dated 23.7.2018 in Petition No. 01/TT/2018 (*) Asset-26 10281.56 20859.74 19293.26 18021.23 0.00 0.00 0.00 1412.55 347.63 19781.41 Asset-27 7744.16 11531.42 9512.66 9010.58 0.00 0.00 0.00 1054.72 315.08 10380.38 Commission's order dated 12.6.2019 in Petition No. 177/TT/2018(*) Asset-28 915.84 2268.70 1487.4 1347.32 0.00 0.00 0.00 611.08 175.29 2133.69 Commission's order dated 20.11.2019 in Petition No. 337/TT/2018 (*) Asset-29 748.89 755.08 697.36 615.15 0.00 0.00 0.00 5.20 50.12 670.47 Asset-30 822.52 807.45 754.19 663.79 0.00 0.00 0.00 5.20 60.75 729.74 Asset-31 11132.12 17427.59 16666.91 15209.76 0.00 0.00 0.00 0.00 1768.11 16977.87 Asset-32 849.77 697.01 813.67 732.51 0.00 0.00 0.00 0.00 74.44 806.95 Commission's order dated 7.1.2020 in Petition No. 364/TT/2018 (*) Asset-33 47282.68 57590.39 72345.10 54068.78 0.00 0.00 0.00 0.00 652.19 54720.97 Asset-34 4515.99 1201.09 1513.72 981.9 0.00 0.00 0.00 0.00 4.25 986.15 Asset-35 2164.60 2384.86 2007.71 0.00 0.00 0.00 0.00 0.00 2007.71 Asset-36 4769.18 4046.93 1157.01 1059.96 0.00 0.00 0.00 0.00 0.00 1059.96

(*) Accrual IDC adjusted from COD and added in respective year of discharge.

13. The Petitioner has submitted RCE-II duly approved by the Board of Directors in its 375 meeting held on 28.3.2020 in the instant petition. The Petitioner vide Auditor's Certificate dated 31.7.2019 and 12.1.2020 has submitted the capital cost upto 1.4.2014 (or Asset-1 to Asset-20)/COD (Asset-21 to Asset-36) along with ACE up to 31.3.2019. The details of the apportioned approved capital cost, capital cost as on COD and ACE incurred upto 31.3.2019 as claimed by the Petitioner for the transmission assets are as follows:

(Rs. in lakh)

Assets Apportioned approved cost as per FR Apportioned approved cost as per RCE Apportioned approved cost as per RCE-II Expenditure up to COD/31.3.2014 ACE 2014-2019 Cost as on 31.3.2019 (as per Auditor's Certificate) 2014-15 2015-16 2016-17 2017-18 2018-19 Asset-1 1060.18 1471.54 1427.10 1169.80 163.48 19.19 1.17 0.00 0.00 1353.64 Asset-2 1060.18 1258.98 1095.95 964.01 74.55 16.78 4.33 0.36 0.00 1060.03 Asset-3 2434.81 2360.59 2045.43 1726.66 174.06 28.12 0.56 0.00 0.00 1929.40 Asset-4 2413.42 2574.72 2096.61 1894.45 10.51 30.17 0.98 0.00 0.00 1936.11 Asset-5 2300.26 2195.96 2124.35 1721.90 189.62 35.36 72.63 0.00 0.00 2019.51 Asset-6 3512.15 4439.53 4184.24 3354.38 324.91 145.95 15.23 7.31 98.16 3945.94 Asset-7 2301.62 3242.57 2925.29 2604.93 191.02 47.71 8.38 0.00 0.00 2852.04 Asset-8 4746.49 4642.36 3364.85 3233.67 0.00 23.44 1.15 0.00 0.00 3258.26 Asset-9 1758.12 3169.37 2279.37 2050.16 0.00 0.00 107.16 0.00 0.00 2157.32 Asset-10 2429.64 2613.83 2270.52 2146.38 77.14 7.02 1.11 0.00 0.00 2231.65 Asset-11 8128.60 10937.02 10056.08 9484.01 365.10 0.00 10.58 10.13 0.00 9869.82 Asset-12 740.90 1433.01 1097.63 1019.66 20.67 24.15 1.22 0.00 0.00 1065.70 Asset-13 3095.64 2366.28 2056.91 1507.31 33.60 312.67 6.53 179.11 0.00 2039.22 Asset-14 772.89 603.05 630.41 496.61 45.41 32.10 0.00 0.00 0.00 574.12 Asset-15 555.23 605.70 405.06 245.24 20.67 70.48 0.61 13.62 0.00 350.62 Asset-16 2089.80 547.11 429.50 345.33 0.00 78.90 0.02 0.00 0.00 424.25 Asset-17 388.76 395.62 299.68 160.62 9.56 99.51 0.01 24.98 0.00 294.68 Asset-18 569.16 635.18 396.64 338.51 16.27 14.93 0.61 16.08 0.00 386.40 Asset-19 466.15 667.15 478.99 422.63 4.48 26.58 0.00 11.47 0.00 465.16 Asset-20 545.56 1218.46 768.52 656.38 8.34 6.51 0.52 8.04 0.00 679.79 Asset-21 8754.02 10125.59 10097.29 8235.67 0.00 567.95 602.78 382.94 9.52 9798.86 Asset-22 10637.01 4145.13 4208.35 2713.28 0.00 675.72 214.42 276.62 9.03 3889.07 Asset-23 1319.74 1214.47 877.17 0.00 94.23 57.72 48.35 1.8 1079.27 Asset-24 37758.63 62130.54 65204.87 46721.82 0.00 11918.74 3180.48 204.64 248.62 62274.30 Asset-25 26818.07 48838.97 46025.07 37920.16 0.00 2701.83 2311.95 2068.18 50.42 45052.54 Asset-26 10281.56 20859.74 20967.49 19293.26 0.00 0.00 0.00 844.98 352.64 20490.88 Asset-27 7744.16 11531.42 11400.45 9512.66 0.00 0.00 0.00 647.66 425.75 10586.07 Asset-28 915.84 2268.70 2310.73 1487.40 0.00 0.00 0.00 321.74 425.1 2234.24 Asset-29 748.89 755.08 744.43 697.36 0.00 0.00 0.00 5.2 12.77 715.33 Asset-30 822.52 807.45 799.83 754.19 0.00 0.00 0.00 5.2 6.05 765.44 Asset-31 11132.12 17427.59 18260.14 16666.91 0.00 0.00 0.00 0.00 904.84 17571.75 Asset-32 849.77 697.01 891.45 813.67 0.00 0.00 0.00 0.00 58.36 872.03 Asset-33 47282.68 57590.39 80627.46 72345.10 0.00 0.00 0.00 0.00 4820.5 77165.60 Asset-34 4515.99 1201.09 1823.29 1513.72 0.00 0.00 0.00 0.00 124.48 1638.20 Asset-35 2164.60 2799.47 2530.65 0.00 0.00 0.00 0.00 28.43 2559.08 Asset-36 4769.18 4046.93 1359.08 1157.01 0.00 0.00 0.00 0.00 64.9 1221.91

Cost Over-run

14. The Petition was heard on 9.7.2021. During the course of hearing, in response to the Commission's query, the Petitioner clarified that original FR was approved on 26.2.2010, RCE was approved on 12.1.2016 and RCE-II was approved on 28.3.2020. He submitted that the Petitioner has a well-defined policy for approval of RCE. He further submitted that at the time of RCE, only 40-60% of the total cost estimate of the transmission project was available. RCE-II was initiated on 90% completion of the transmission project. He also submitted that as on 31.3.2019, the total expenditure is more or less within the RCE approved apportioned cost. RCE-II is required to meet the expenditure projected during 2019-24 tariff period.

15. The Commission vide order dated 7.1.2020 in Petition No. 364/TT/2018 observed as follows:

“30. The Petitioner has submitted that the Revised Cost Estimate-II (RCE-II) for the project is under management approval and shall be submitted before the Commission. We have considered the submissions of the Petitioner. The Petitioner is given liberty to submit RCE-II at the time of true up of 2014-19 period. Accordingly, the capital cost claimed by the Petitioner as on COD and additional capitalization upto 31.3.2019 has been considered for tariff calculation, subject to capital cost allowed within RCE as per above table and scrutiny of IDC, IEDC and Initial spares, hereinafter.”

16. The Commision vide RoP for hearing dated 9.7.2021 directed the Petitioner to submit “the Policy on approval of RCE”. In response, the Petitioner vide affidavit dated 23.7.2021 has submitted that, once main packages of a project are awarded, RCE of the project is prepared by taking into consideration the anticipated price variation. Whenever there are variations with reference to original estimate, the reason for variations and the basis of revised estimate are also indicated. While working out the revised cost estimate, the cost of site packages and the expenditure incurred for land acquisition and other related works are also be taken into account. Accordingly, RCE is again be reviewed when the actual expenditure incurred which is approximately 50% of the approved cost estimate of the project (FR cost). Further, RCE is reviewed again six months prior to the anticipated completion of the project in the manner prescribed as above. Therefore, RCE is being prepared based on actual expenditure already incurred as well as expenditure to be incurred for competition of the project. Further, RCE-II is being prepared, if any, at any time during the execution of the project, it is anticipated that the completion of the project would be delayed beyond the scheduled execution and RCE is expected to exceed the approved cost, RCE need to be prepared again. The procedure followed for preparation of RCE-II is based on the company's Work & Procurement Policy and Procedure. The Petitioner has submitted that it has followed the procedure already defined in their policy for RCE approval. Overall completed cost of all the transmission assets is within the apportioned approved cost of RCE-II approved by the Board of directors of the Petitioner and, hence, the capital cost may be allowed as claimed in the petition.

17. We have considered the submissions of the Petitioner. The FR apportioned cost of the transmission assets covered in the instant petition is Rs. 214400 lakh and the capital cost claimed by the Petitioner from their respective CODs to 2019 in respect of all the transmission assets is Rs. 296808.23 lakh. Accordingly, there is overall cost over-run of Rs. 82408.23 lakh with respect to FR cost. Further, the Petitioner has submitted RCE-I of Rs. 293288 lakh and the capital cost claimed by the Petitioner from their respective CODs to 2019 in respect of all the transmission assets is Rs. 296808.23 lakh. Accordingly, there is overall cost over-run of Rs. 3520.23 lakh with respect to RCE.

18. The Commission has already taken cognisnace of RCE and allowed the capital cost of Asset-1 to Asset-36. The RCE-II apportioned approved capital cost of Asset-14, Asset-22, Asset-24, Asset-26, Asset-28, Asset-31, Asset-32, Asset-33, Asset-34 and Asset-35 is more than RCE-I apportioned approved capital cost and the details are as follows:

(Rs. in lakh)

Assets Apportioned approved cost as per RCE-I Apportioned approved cost as per RCE-II Capital cost as on 31.3.2024 Asset-14 603.05 630.41 608.05 Asset-22 4145.13 4208.35 4179.19 Asset-24 62130.54 65204.87 65180.34 Asset-26 20859.74 20967.49 20941.40 Asset-28 2268.70 2310.73 2295.42 Asset-31 17427.59 18260.14 18219.54 Asset-32 697.01 891.45 889.27 Asset-33 57590.39 80627.46 80612.18 Asset-34 1201.09 1823.29 1807.95 Asset-35 2164.60 2799.47 2781.67

19. The Petitioner has submitted Form-5, wherein the Petitioner has submitted that the reason for cost variation with respect to Asset-24, Asset-31, Asset-33, Asset-34 and Asset-35 and the same is as follows:

Asset Reasons for varitation Asset-24 The variation is due to actual compensation paid as per surface damage encountered at site which has been duly assessed by local adminstrator/forset department, line length increased from 140 km to 167 km, increased quantity of insulators, hardware fitting and increase in number of tension type towers. Asset-31 The variation is due to actual compensation paid as per surface damage encountered at site which has been duly assessed by local adminstrator/forset department, line length increased from 140 km to 167 km, increased quantity of insulators, hardware fitting and increase in number of tension type towers. Asset-33 The variation is due to the actual compensation paid based on the assessment made by Revenue/District/Forest authorities, quantity of towers and number of angle towers increased due to increase in line length, quantity of towers and number of angle towers were increased as per actual route of the line and rates received through open competitive bidding. Asset-34 The variation is due to the actual crop compensation paid based on the assessment made by Revenue Authorities Asset-35 The variation is due to the actual crop compensation paid based on the assessment made by Revenue Authorities

20. Further, the Petitioner has submitted RCE-II of Rs. 309167 lakh and the capital cost claimed by the Petitioner from their respective COD to 2019 in respect of all the transmission assets is Rs. 296808.23 lakh. The reivsed apportioned approved cost as per RCE-II, the estimated completion cost of each asset is within RCE-II cost.

Time Over-run

21. As per IA dated 25.2.2010, the transmission project was scheduled to be put into commercial operation within 34 months from the date of IA i.e. by 25.12.2012. The details of the actual COD and time over-run in respect of the transmission assets are as follows:

Assets SCOD COD Time over-run Time over-run not condoned Asset-1 25.12.2012 1.11.2012 - - Asset-2 1.12.2012 - - Asset-3 1.4.2013 3 months - Asset-4 1.1.2013 - - Asset-5 1.5.2012 - - Asset-6 1.4.2012 - - Asset-7 1.7.2012 - - Asset-8 1.7.2012 - - Asset-9 1.7.2012 - - Asset-10 1.7.2012 - - Asset-11 1.7.2012 - - Asset-12 1.11.2012 - - Asset-13 1.4.2013 3 months - Asset-14 1.2.2013 1 month - Asset-15 1.5.2013 4 months - Asset-16 1.4.2013 3 months - Asset-17 1.9.2013 8 months - Asset-18 1.4.2013 3 months - Asset-19 1.3.2013 2 months - Asset-20 1.4.2013 3 months - Asset-21 25.12.2012 1.8.2015 943 days - Asset-22 1.8.2015 943 days - Asset-23 1.9.2015 974 days - Asset-24 22.3.2015 811 days - Asset-25 1.8.2015 31 months - Asset-26 12.6.2017 1628 days - Asset-27 14.06.2017 1630 days - Asset-28 17.11.2017 1788 days - Asset-29 21.1.2018 1853 days 223 days Asset-30 21.1.2018 1853 days 223 days Asset-31 5.7.2018 2018 days - Asset-32 14.6.2018 1997 days - Asset-33 1.12.2018 2167 days - Asset-34 1.12.2018 2167 days 11 days Asset-35 1.12.2018 2167 days 11 days Asset-36 26.1.2019 2223 days 67 days

22. The Commission has already dealt with the time over-run in case of the transmission assets. The time over-run in case of Asset-3 was dealt in order dated 18.2.2014 in Petition No. 216/TT/2012, Asset-13 to Asse-20 in order dated 7.12.2015 in Petition No. 44/TT/2013 and Asset-21 to Asset-24 in order dated 31.3.2016 in Petition No. 398/TT/2014. The time over-run in case of Asset-24 was dealt in order dated 29.3.2016 in Petition No. 267/TT/2015, Asset-26 and Asset-27 in order dated 23.7.2018 in Petition No. 1/TT/2018 and Asset-28 was in order dated 12.6.2019 in Petition No. 177/TT/2018. The time over-run in case of Asset-29 to Asset-32 was dealt vide order dated 20.11.2019 in Petition No. 337/TT/2018 and Asset-33 to Asset-36 in order dated 7.1.2020 in Petition No. 364/TT/2018.

Interest During Construction (“IDC”) and Incidental Expenditure during Construction (“IEDC”)

23. The COD of Asset-1 to Asset-20 is in 2009-14 tariff period and the IDC in case of those transmission assets has already been approved by the Commission.

24. The Petitioner has claimed IDC for the remaining transmission assets i.e Asset-21 to Asset-36 and has submitted the Auditor's Certificates dated 31.7.2019 and 12.1.2020 in support of the same. The Petitioner has submitted the computation of IDC along with year-wise details of the IDC discharged.

25. We have considered the submissions of the Petitioner. The allowable IDC has been worked out considering the information submitted by the Petitioner in respect of the transmission assets (Asset-21 to Asset-36) separately on cash basis. The loan details submitted in Form-9C for 2014-19 tariff period and IDC computation sheets have been considered for the purpose of IDC calculations on cash and accrued basis. The un-discharged IDC as on COD of the transmission assets has been considered as ACE during the year in which it has been discharged.

26. Accordingly, based on the information furnished by the Petitioner, IDC considered for Assets-21 to Asset-36 are as follows:

(Rs. in lakh)

Assets IDC as per Auditor's Certificate IDC Admissible IDC disallowed due to computational difference/time overrun IDC Discharged as on COD IDC Undischarged as on COD IDC Discharge During 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 A B C=A-B D E=B-D F G H I J Asset - 21 1266.07 1266.07 0.00 1076.58 189.49 0.00 170.25 19.24 - - - Asset - 22 514.90 514.90 0.00 459.48 55.42 0.00 55.42 - - - - Asset - 23 169.08 168.79 0.30 146.57 22.22 0.00 16.25 5.97 - - - Asset - 24 5894.88 5860.14 34.74 4648.58 1211.56 138.30 1073.26 - - - - Asset - 25 5511.03 5511.03 0.00 4628.74 882.29 - 824.92 57.37 - - - Asset - 26 5165.28 5165.28 0.00 4657.03 508.25 - - - 499.40 8.84 - Asset - 27 1813.87 1813.87 0.00 1689.97 123.90 - - - 123.23 0.67 - Asset - 28 375.89 375.89 0.00 337.10 38.79 - - - 24.90 13.88 - Asset - 29 138.70 119.59 19.11 119.22 0.37 - - - - 0.37 - Asset - 30 151.19 130.84 20.35 130.47 0.37 - - - - 0.37 - Asset - 31 3810.96 3810.96 0.00 3307.85 503.11 - - - - 500.46 2.65 Asset - 32 173.88 173.88 0.00 135.09 38.79 - - - - 38.79 - Asset - 33 16529.50 16529.50 0.00 15393.95 1135.55 - - - - 652.19 483.36 Asset - 34 439.08 439.08 0.00 425.75 13.33 - - - - 4.25 9.09 Asset - 35 694.90 694.90 0.00 657.08 37.82 - - - - 25.00 12.82 Asset - 36 308.48 308.48 0.00 290.17 18.31 - - - - - 18.31

27. The IEDC in case of Assets-1 to Asset-20 has already been approved by the Commission in previous orders.

28. The Petitioner has claimed IEDC for the remaining transmission assets i.e Asset-21 to Asset-36 in the instant petition and has submitted Form-12A and Auditor's Certificate in support of its claim.

29. APTEL in judgment dated 2.12.2019 in Appeal No. 95 of 2018 and Appeal No. 140 of 2018 observed that IEDC should be computed on actual basis after prudence check. The relevant protion of the said judgement is extracted hereunder. The IEDC is allowed in accordance with the APTEL's judgement.

“7.16 In light of the above, we are of the considered opinion that Central Commission has not considered the IEDC for the reference assets correctly in line with provisions of its own regulations which cannot be sustained in the eyes of law. In catena of judgments of Hon'ble Supreme Court and this Tribunal, it has been held that the Regulations framed by the Commissions are binding for all stakeholders including the Commission itself. The Regulations framed under the Act, in no way, mandate the Central Commission to restrict the IEDC to 5% of the original estimated hard cost.

7.17 Accordingly, we hold that IEDC should be computed only on actual basis after due prudence check based on the data submitted by the Appellant in accordance with the Tariff Regulations”

30. We have examined the Form-12A along with the Auditor's Certificate submitted by the Petitioner in support of its claim. We have considered the submissions of the Petitioner. IEDC allowed for Assets-21 to Asset-36 iss as follows:

(Rs. in lakh)

Assets IEDC claimed IEDC disallowed due to time over-run not condoned IEDC allowed Asset - 21 524.43 0.00 524.43 Asset - 22 213.28 0.00 213.28 Asset - 23 69.83 0.00 69.83 Asset - 24 2477.21 0.00 2477.21 Asset - 25 2282.78 0.00 2282.78 Asset - 26 1348.90 0.00 1348.90 Asset - 27 716.41 0.00 716.41 Asset - 28 185.00 0.00 185.00 Asset - 29 59.71 4.61 55.10 Asset - 30 65.09 5.03 60.06 Asset - 31 1571.48 0.00 1571.48 Asset - 32 72.52 0.00 72.52 Asset - 33 6262.01 0.00 6262.01 Asset - 34 172.91 0.59 172.32 Asset - 35 234.93 0.81 234.12 Asset - 36 113.18 2.33 110.85

Initial Spares

31. The Petitioner has claimed the following Initial Spares in respect of the transmission assets and has prayed to revise the Initial Spares allowed earlier in light of the APTEL's judgment dated 14.9.2019 in Appeal No. 74 of 2017. Initial Spares claimed by the Petitioner are as follows:

Sub-station

Assets Estimated completion cost (A) (Rs. in lakh) Initial Spares claimed (B) (Rs. in lakh) Ceiling limit (in %) (C) Initial Spares worked out (Rs. in lakh) D = [(A-B)*C/(100-C)] Asset-1 1423.55 30.14 2.5 35.73 Asset-2 1093.98 24.80 2.5 27.41 Asset-3 2009.72 14.87 2.5 51.15 Asset-4 815.66 18.91 2.5 20.43 Asset-5 626.97 8.93 2.5 15.85 Asset-6 3879.72 11.11 2.5 99.20 Asset-7 2903.17 43.09 2.5 73.34 Asset-8 3329.98 0.00 2.5 85.38 Asset-9 222.77 0.00 2.5 5.71 Asset-10 2262.4 41.18 2.5 56.95 Asset-11 247.44 7.19 2.5 6.16 Asset-12 1072.22 19.94 2.5 26.98 Asset-13 1668.05 42.66 2.5 41.68 Asset-14 608.05 13.37 2.5 15.25 Asset-15 352.7 8.06 2.5 8.84 Asset-16 22.36 5.85 2.5 0.42 Asset-17 264.5 3.66 2.5 6.69 Asset-18 390.75 7.30 2.5 9.83 Asset-19 465.16 7.80 2.5 11.73 Asset-20 712.69 9.95 2.5 18.02 Asset-21 3028.95 42.65 4.0 124.43 Asset-22 2380.93 197.26 4.0 90.99 Asset-23 904.06 0.00 4.0 37.67 Asset-24 811.71 17.03 4.0 33.11 Asset-25 508.33 0.00 6.0 32.45 Asset-26 2195.35 67.21 4.0 88.67 Asset-27 1211.37 38.25 4.0 48.88 Asset-28 136.33 0.00 4.0 5.68 Asset-29 530.27 8.81 4.0 21.73 Asset-30 565.69 16.62 4.0 22.88 Asset-31 2159.04 57.44 4.0 87.57 Asset-32 580.19 2.25 4.0 24.08 Asset-33 4690.2 133.33 4.0 189.87 Asset-34 356.31 0.00 4.0 14.85 Asset-35 559.63 20.54 4.0 22.46 Asset-36 900.04 8.10 4.0 37.16 Total 45890.24 928.3 1499.22
Assets Estimated completion cost (A) (Rs. in lakh) Initial Spares claimed (B) (Rs. in lakh) Ceiling limit (in %) (C) Initial Spares worked out (Rs. in lakh) D = [(A-B)*C/(100-C)] Asset-21 92.64 0.00 3.5 3.36 Asset-22 67.59 0.00 3.5 2.45 Asset-24 10.51 0.00 3.5 0.38 Asset-25 39.54 0.00 3.5 1.43 Asset-26 56.4 5.67 3.5 1.84 Asset-27 57.72 3.24 3.5 1.98 Asset-28 20.26 0.00 3.5 0.73 Asset-31 65.07 2.88 3.5 2.26 Asset-33 158.81 5.02 3.5 5.58 Asset-34 9.85 0.00 3.5 0.36 Asset-35 6.66 0.00 3.5 0.24 Total 585.05 16.81 3.5 20.61

Transmission Line

Assets Estimated completion cost (A) (Rs. in lakh) Initial Spares claimed (B) (Rs. in lakh) Ceiling Limit (in %) (C) Initial Spares worked out (Rs. in lakh) D = [(A-B)*C/(100-C)] Asset-4 1244.38 9.08 0.75 9.33 Asset-5 1460.13 10.25 0.75 10.96 Asset-6 152.56 1.23 0.75 1.14 Asset-9 2038.13 13.74 0.75 15.30 Asset-11 9773.86 71.84 0.75 73.32 Asset-13 65.78 0.13 0.75 0.50 Asset-16 186.08 0.42 0.75 1.40 Asset-17 32.91 0.27 0.75 0.25 Asset-21 5093.49 84.78 1.00 50.59 Asset-22 431.12 0.00 1.00 4.35 Asset-24 55512.72 277.86 1.00 557.93 Asset-25 37589.05 199.49 1.00 377.67 Asset-26 11526.73 101.30 1.00 115.41 Asset-27 6681.33 49.81 1.00 66.99 Asset-28 1577.94 12.00 1.00 15.82 Asset-31 9486.74 53.65 1.00 95.28 Asset-33 50519.19 275.03 1.00 507.52 Asset-34 829.8 8.56 1.00 8.30 Asset-35 932.54 9.25 1.00 9.33 Total 195134.48 1178.69 1921.37

32. We have considered the submissions of the Petitioner. As per the APTEL's judgment dated 14.9.2019 in Appeal No. 74 of 2017, Initial Spares are to be allowed as per the ceiling limits on overall trasnsmission project cost.

33. Accordingly, Initial Spares are allowed as percentage of the project cost as a whole. The assets covered under the transmission project have been put into commercial operation in 2009-14 tariff period and 2014-19 tariff period. The transmission project as per IA was completed during 2014-19 tariff period and the overall project cost of the transmission assets is arrived only when all the transmission assets are combined while claiming the tariff for 2019-24 tariff period. Therefore, Initial Spares are allowed on the basis of the cost of the individual transmission assets in the 2009-14 period and 2014-19 tariff period and Initial Spares are allowed on the basis of the overall project cost in 2019-24 tariff period (as discussed in the relevant portion of the instant order). The Petitioner has claimed Initial Spares separately for Asset-21 to Asset-35 for PLCC under “Communication System” in the instant petition. The Commission vide order dated 24.1.2021 in Petition No. 126/TT/2020 observed that PLCC is a part of sub-station and, accordingly did not allow separate O&M Expenses for PLCC. In view of the findings of the Commission recorded vide order dated 24.1.2021 in Petition No. 126/TT/2020, we are of the view that PLCC has to be considered as a part of sub-station. Therefore, cost of PLCC has been clubbed with the cost of sub-station while computing the Initial Spares. Initial Spares allowed by the Commission in respect of Asset-1 to Asset-20 and Asset-21 to Asset-36 are as follows:

Sub-stations:

Assets Capital Cost (Rs. in lakh) Initial Spares claimed (Rs. in lakh) Norms as per 2014 Tariff Regulations (in %) Initial Spares allowable as per the 2014 Tariff Regulations (Rs. in lakh) Initial Spares allowed (Rs. in lakh) 2009-14 Period Asset-1 1423.55 30.14 2.5 35.73 30.14 Asset-2 1093.98 24.80 2.5 27.41 24.80 Asset-3 2009.72 14.87 2.5 51.15 14.87 Asset-4 815.66 18.91 2.5 20.43 18.91 Asset-5 626.97 8.93 2.5 15.85 8.93 Asset-6 3879.72 11.11 2.5 99.20 11.11 Asset-7 2903.17 43.09 2.5 73.34 43.09 Asset-8 3329.98 0.00 2.5 85.38 0.00 Asset-9 222.77 0.00 2.5 5.71 0.00 Asset-10 2262.4 41.18 2.5 56.95 41.18 Asset-11 247.44 7.19 2.5 6.16 6.16 Asset-12 1072.22 19.94 2.5 26.98 19.94 Asset-13 1668.05 42.66 2.5 41.68 41.68 Asset-14 608.05 13.37 2.5 15.25 13.37 Asset-15 352.7 8.06 2.5 8.84 8.06 Asset-16 22.36 5.85 2.5 0.42 0.42 Asset-17 264.5 3.66 2.5 6.69 3.66 Asset-18 390.75 7.30 2.5 9.83 7.30 Asset-19 465.16 7.80 2.5 11.73 7.80 Asset-20 712.69 9.95 2.5 18.02 9.95 2014-19 Period Plant & Machinery cost considered as on cutoff date Initial Spares claimed (Rs. in lakh) Norms as per the 2014 Tariff Regulations (in %) Initial Spares allowable as per 2014 Tariff Regulations (Rs. in lakh) Initial Spares allowed (Rs. in lakh) Asset-21 3032.72 42.65 4.00 124.59 42.65 Asset-22 2450.51 197.26 4.00 93.89 93.89 Asset-23 838.56 0.00 4.00 34.94 0.00 Asset-24 800.42 17.03 4.00 32.64 17.03 Asset-25 525.74 0.00 6.00 33.56 0.00 Asset-26 2251.75 67.21 4.00 91.02 67.21 Asset-27 1269.09 38.25 4.00 51.29 38.25 Asset-28 156.59 0.00 4.00 6.52 0.00 Asset-29 530.27 8.81 4.00 21.73 8.81 Asset-30 565.69 16.62 4.00 22.88 16.62 Asset-31 2223.96 57.44 4.00 90.27 57.44 Asset-32 580.20 2.25 4.00 24.08 2.25 Asset-33 4849.01 133.33 4.00 196.49 133.33 Asset-34 366.16 0.00 4.00 15.26 0.00 Asset-35 566.29 20.54 4.00 22.74 20.54 Asset-36 900.04 8.10 4.00 37.16 8.10

Transmission Line:

Assets Capital Cost (Rs. in lakh) Initial Spares claimed (Rs. in lakh) Norms as per the 2014 Tariff Regulations (in %) Initial Spares allowable as per 2014 Tariff Regulations (Rs. in lakh) Initial Spares allowed (Rs. in lakh) 2009-14 Period Asset-4 1244.38 9.08 0.75 9.33 9.08 Asset-5 1460.13 10.25 0.75 10.96 10.25 Asset-6 152.56 1.23 0.75 1.14 1.14 Asset-9 2038.13 13.74 0.75 15.30 13.74 Asset-11 9773.86 71.84 0.75 73.32 71.84 Asset-13 65.78 0.13 0.75 0.50 0.13 Asset-16 186.08 0.42 0.75 1.40 0.42 Asset-17 32.91 0.27 0.75 0.25 0.25 2014-19 Period Assets Plant & Machinery cost considered as on cutoff date (Rs. in lakh) Initial Spares claimed (Rs. in lakh) Norms as per the 2014 Tariff Regulations (in %) Initial Spares allowable as per 2014 Tariff Regulations (Rs. in lakh) Initial Spares allowed (Rs. in lakh) Asset-21 4966.12 84.78 1.00 49.31 49.31 Asset-22 386.69 0.00 1.00 3.91 0.00 Asset-24 52388.94 277.86 1.00 526.37 277.86 Asset-25 36639.23 199.49 1.00 368.08 199.49 Asset-26 11526.73 101.3 1.00 115.41 101.30 Asset-27 6606.14 49.81 1.00 66.23 49.81 Asset-28 1568.82 12.00 1.00 15.73 12.00 Asset-31 9486.74 53.65 1.00 95.28 53.65 Asset-33 50519.19 275.03 1.00 507.52 275.03 Asset-34 829.80 8.56 1.00 8.30 8.30 Asset-35 932.54 9.25 1.00 9.33 9.23

Capital Cost allowed as on COD

34. COD of Assets-1 to Asset-20 has been approved in 2009-14 tariff period. The trued up capital cost as on 31.3.2014 for Combined Asset-1 to Asset-12 (except Asset-4) was Rs. 29444.68 lakh and for Asset-4 was Rs. 1893.60 lakh as approved by the Commission vide order dated 28.3.2016 in Petition No. 553/TT/2014, which has been considered as capital cost as on 1.4.2014. The trued up capital cost as on 31.3.2014 for Combined Asset-13 to Asset-20 was Rs. 4091.88 lakh as approved by the Commission vide order dated 16.6.2016 in Petition No. 78/TT/2016, which has been considered as capital cost as on 1.4.2014.

35. The capital cost has been allowed as on COD for Asset-21 to Asset-36 are as follows:

(Rs. in lakh)

Assets Capital Cost as on COD as per Auditor's Certificate Less : IDC as on COD due to IEDC disallowed due to time over-run not condoned Excess Initial Spares Capital Cost as on COD (on cash basis) IDC Disallowed Undischarged IDC Asset - 21 8235.67 0.00 189.49 0.00 35.47 8010.71 Asset - 22 2713.28 0.00 55.42 0.00 103.37 2554.49 Asset - 23 877.17 0.30 22.22 0.00 0.00 854.66 Asset - 24 46721.82 34.74 1211.56 0.00 0.00 45475.52 Asset - 25 37920.16 0.00 882.29 0.00 0.00 37037.87 Asset - 26 19293.26 0.00 508.25 0.00 0.00 18785.01 Asset - 27 9512.66 0.00 123.90 0.00 0.00 9388.76 Asset - 28 1487.40 0.00 38.79 0.00 0.00 1448.61 Asset - 29 697.36 19.11 0.37 4.61 0.00 673.27 Asset - 30 754.19 20.35 0.37 5.03 0.00 728.44 Asset - 31 16666.91 0.00 503.11 0.00 0.00 16163.80 Asset - 32 813.67 0.00 38.79 0.00 0.00 774.88 Asset - 33 72345.10 0.00 1135.55 0.00 0.00 71209.55 Asset - 34 1513.72 0.00 13.33 0.59 0.26 1499.53 Asset - 35 2530.65 0.00 37.82 0.81 0.00 2492.02 Asset - 36 1157.01 0.00 18.31 2.33 0.00 1136.37

Additional Capital Expenditure (“ACE”)

36. The Petitioner has claimed the following ACE in respect of the transmission assets and has submitted the Auditor's Certificates in support of the same:

(Rs. in lakh)

ACE 2014-2019 Assets (as per Auditor's Certificate) 2014-15 2015-16 2016-17 2017-18 2018-19 Asset-1 163.48 19.19 1.17 0.00 0.00 Asset-2 74.55 16.78 4.33 0.36 0.00 Asset-3 174.06 28.12 0.56 0.00 0.00 Asset-4 10.51 30.17 0.98 0.00 0.00 Asset-5 189.62 35.36 72.63 0.00 0.00 Asset-6 324.91 145.95 15.23 7.31 98.16 Asset-7 191.02 47.71 8.38 0.00 0.00 Asset-8 0.00 23.44 1.15 0.00 0.00 Asset-9 0.00 0.00 107.16 0.00 0.00 Asset-10 77.14 7.02 1.11 0.00 0.00 Asset-11 365.10 0.00 10.58 10.13 0.00 Asset-12 20.67 24.15 1.22 0.00 0.00 Asset-13 33.60 312.67 6.53 179.11 0.00 Asset-14 45.41 32.10 0.00 0.00 0.00 Asset-15 20.67 70.48 0.61 13.62 0.00 Asset-16 0.00 78.90 0.02 0.00 0.00 Asset-17 9.56 99.51 0.01 24.98 0.00 Asset-18 16.27 14.93 0.61 16.08 0.00 Asset-19 4.48 26.58 0.00 11.47 0.00 Asset-20 8.34 6.51 0.52 8.04 0.00 Asset-21 0.00 567.95 602.78 382.94 9.52 Asset-22 0.00 675.72 214.42 276.62 9.03 Asset-23 0.00 94.23 57.72 48.35 1.8 Asset-24 0.00 11918.74 3180.48 204.64 248.62 Asset-25 0.00 2701.83 2311.95 2068.18 50.42 Asset-26 0.00 0.00 0.00 844.98 352.64 Asset-27 0.00 0.00 0.00 647.66 425.75 Asset-28 0.00 0.00 0.00 321.74 425.1 Asset-29 0.00 0.00 0.00 5.2 12.77 Asset-30 0.00 0.00 0.00 5.2 6.05 Asset-31 0.00 0.00 0.00 0.00 904.84 Asset-32 0.00 0.00 0.00 0.00 58.36 Asset-33 0.00 0.00 0.00 0.00 4820.5 Asset-34 0.00 0.00 0.00 0.00 124.48 Asset-35 0.00 0.00 0.00 0.00 28.43 Asset-36 0.00 0.00 0.00 0.00 64.9

37. The transmission assets have been executed during 2009-14 and 2014-19 and accordingly, cut-off date for the transmission assets and ACE are as follows:

Assets COD Cut-off date ACE during 2014-19 claimed under Regulation ACE during 2019-24 claimed under Regulation 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Asset-1 1.11.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-2 1.12.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-3 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) - - 25(1)(d) - Asset-4 1.1.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) - - 25(1)(d) - Asset-5 1.5.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-6 1.4.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) 14(3)(v) 14(3)(v) 25(1)(d) 25(1)(d) Asset-7 1.7.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-8 1.7.2012 31.03.2015 - 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-9 1.7.2012 31.3.2015 - - 14(3)(v) - - 25(1)(d) 25(1)(d) Asset-10 1.7.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-11 1.7.2012 31.3.2015 14(1)(i) - 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-12 1.12.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-13 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-14 1.2.2013 31.3.2016 14(1)(i) 14(1)(i) - - - 25(1)(d) - Asset-15 1.5.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-16 1.4.2013 31.3.2016 14(1)(i) - 14(3)(v) - - 25(1)(d) - Asset-17 1.9.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-18 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-19 1.3.2013 31.3.2016 14(1)(i) 14(1)(i) - 14(3)(v) - - - Asset-20 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-21 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-22 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-23 1.9.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-24 22.3.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) 25(1)(d) Asset-25 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-26 12.6.2017 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-27 14.6.2017 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) 25(1)(d) Asset-28 17-Nov-17 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) 25(1)(d) Asset-29 21.1.2018 31.3.2021 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-30 21.1.2018 31.3.2021 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-31 5.7.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-32 14.6.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-33 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-34 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-35 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-36 26.1.2019 31.3.2022 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) -
Assets COD Cut-off date ACE during 2014-19 claimed under Regulation ACE during 2019-24 claimed under Regulation 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Asset-1 1.11.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-2 1.12.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-3 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) - - 25(1)(d) - Asset-4 1.1.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) - - 25(1)(d) - Asset-5 1.5.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-6 1.4.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) 14(3)(v) 14(3)(v) 25(1)(d) 25(1)(d) Asset-7 1.7.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-8 1.7.2012 31.03.2015 - 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-9 1.7.2012 31.3.2015 - - 14(3)(v) - - 25(1)(d) 25(1)(d) Asset-10 1.7.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-11 1.7.2012 31.3.2015 14(1)(i) - 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-12 1.12.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-13 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-14 1.2.2013 31.3.2016 14(1)(i) 14(1)(i) - - - 25(1)(d) - Asset-15 1.5.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-16 1.4.2013 31.3.2016 14(1)(i) - 14(3)(v) - - 25(1)(d) - Asset-17 1.9.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-18 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-19 1.3.2013 31.3.2016 14(1)(i) 14(1)(i) - 14(3)(v) - - - Asset-20 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-21 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-22 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-23 1.9.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-24 22.3.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) 25(1)(d) Asset-25 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-26 12.6.2017 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-27 14.6.2017 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) 25(1)(d) Asset-28 17-Nov-17 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) 25(1)(d) Asset-29 21.1.2018 31.3.2021 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-30 21.1.2018 31.3.2021 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-31 5.7.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-32 14.6.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-33 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-34 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-35 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-36 26.1.2019 31.3.2022 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) -
Assets COD Cut-off date ACE during 2014-19 claimed under Regulation ACE during 2019-24 claimed under Regulation 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Asset-1 1.11.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-2 1.12.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-3 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) - - 25(1)(d) - Asset-4 1.1.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) - - 25(1)(d) - Asset-5 1.5.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-6 1.4.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) 14(3)(v) 14(3)(v) 25(1)(d) 25(1)(d) Asset-7 1.7.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-8 1.7.2012 31.03.2015 - 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-9 1.7.2012 31.3.2015 - - 14(3)(v) - - 25(1)(d) 25(1)(d) Asset-10 1.7.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-11 1.7.2012 31.3.2015 14(1)(i) - 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-12 1.12.2012 31.3.2015 14(1)(i) 14(3)(v) 14(3)(v) - - 25(1)(d) - Asset-13 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-14 1.2.2013 31.3.2016 14(1)(i) 14(1)(i) - - - 25(1)(d) - Asset-15 1.5.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-16 1.4.2013 31.3.2016 14(1)(i) - 14(3)(v) - - 25(1)(d) - Asset-17 1.9.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-18 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-19 1.3.2013 31.3.2016 14(1)(i) 14(1)(i) - 14(3)(v) - - - Asset-20 1.4.2013 31.3.2016 14(1)(i) 14(1)(i) 14(3)(v) 14(3)(v) - 25(1)(d) - Asset-21 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-22 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-23 1.9.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-24 22.3.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) 25(1)(d) Asset-25 1.8.2015 31.3.2018 - 14(1)(i) 14(1)(i) 14(1)(i) 14(2)(iv) 25(1)(d) - Asset-26 12.6.2017 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-27 14.6.2017 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) 25(1)(d) Asset-28 17-Nov-17 31.3.2020 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) 25(1)(d) Asset-29 21.1.2018 31.3.2021 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-30 21.1.2018 31.3.2021 - - - 14(1)(i) 14(1)(i) 24(1)(a) & 24(1)(b) - Asset-31 5.7.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-32 14.6.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-33 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-34 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-35 1.12.2018 31.3.2021 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) 24(1)(a) & 24(1)(b) Asset-36 26.1.2019 31.3.2022 - - - - 14(1)(i) 24(1)(a) & 24(1)(b) -

38. We have considered the submissions of the Petitioner. The undischarged IDC as on COD has been allowed as ACE during the year of discharge. ACE claimed by the Petitioner has been allowed under Regulation 14(1)(i), Regulation 14(2)(iv) and Regulation 14(3)(v) of the 2014 Tariff Regulations which pertain to un-discharged liabilities recognized to be payable at a future date and any liability for works executed prior to the cut-off date. Accordingly, capital cost allowed as on 31.3.2019 after including ACE in respect of the transmission assets are as follows:

(Rs. in lakh)

Assets Capital Cost as on COD/31.3.2014 ACE allowed Capital Cost as on 31.3.2019 2014-15 2015-16 2016-17 2017-18 2018-19 Combined Asset-1 to Asset-12 (except Asset-4) 29444.68 1580.55 347.72 0.00 0.00 0.00 31372.95# Asset-4 1893.60 10.51 30.17 0.00 0.00 0.00 1934.28# Combined Asset-1 to Asset-12 33307.23* 0.00 0.00 224.50 17.80 98.16 33647.69 Combined Asset-13 to Asset-20 4091.88 138.33 641.68 8.30 253.30 0.00 5133.49 Asset-21 8010.71 0.00 738.20 622.02 382.94 9.52 9763.39 Asset-22 2554.49 0.00 731.14 214.42 276.62 9.03 3785.70 Asset-23 854.66 0.00 110.48 63.69 48.35 1.80 1078.98 Asset-24 45475.52 138.30 12992.00 3180.48 204.64 248.62 62239.57 Asset-25 37037.87 0.00 3526.75 2369.32 2068.18 50.42 45052.54 Asset-26 18785.01 0.00 0.00 0.00 1344.38 361.48 20490.87 Asset-27 9388.76 0.00 0.00 0.00 770.89 426.42 10586.07 Asset-28 1448.61 0.00 0.00 0.00 346.64 438.98 2234.23 Asset-29 673.27 0.00 0.00 0.00 5.20 13.14 691.61 Asset-30 728.44 0.00 0.00 0.00 5.20 6.42 740.06 Asset-31 16163.80 0.00 0.00 0.00 0.00 1405.30 17569.10 Asset-32 774.88 0.00 0.00 0.00 0.00 97.15 872.03 Asset-33 71209.55 0.00 0.00 0.00 0.00 5472.70 76682.25 Asset-34 1499.53 0.00 0.00 0.00 0.00 128.73 1628.26 Asset-35 2492.02 0.00 0.00 0.00 0.00 53.43 2545.45 Asset-36 1136.37 0.00 0.00 0.00 0.00 64.90 1201.27

# capital cost as on 31.3.2016

*capital cost as on 1.4.2016

Debt-Equity Ratio

39. The Petitioner has claimed debt-equity ratio of 70 : 30 as on COD/1.4.2014 and for ACE post COD. Debt-equity ratio of 70 : 30 has been considered for capital cost as on COD/1.4.2014 and ACE during 2014-19 tariff period as provided under Regulation 19 of the 2014 Tariff Regulations. The details of debt-equity ratio in respect of the transmission assets as on COD and 31.3.2019 are as follows:

Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Amount as on 1.4.2014 (Rs. in lakh) (in %) Amount as on 31.3.2016 (Rs. in lakh) (in %) Debt 20611.28 70.00 21961.07 70.00 Equity 8833.40 30.00 9411.89 30.00 Total 29444.68 100.00 31372.95 100.00 Asset-4 (1.4.2014 to 31.3.2016) Amount as on 1.4.2014 (Rs. in lakh) (in %) Amount as on 31.3.2016 (Rs. in lakh) (in %) Debt 1325.52 70.00 1354.00 70.00 Equity 568.08 30.00 580.28 30.00 Total 1893.60 100.00 1934.28 100.00 Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Amount as on 1.4.2016 (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 23315.06 70.00 23553.38 70.00 Equity 9992.17 30.00 10094.31 30.00 Total 33307.23 100.00 33647.69 100.00 Combined Asset-13 to 20 Amount as on 1.4.2014 (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 2864.32 70.00 3593.46 70.00 Equity 1227.56 30.00 1540.03 30.00 Total 4091.88 100.00 5133.49 100.00 Asset-21 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 5607.49 70.00 6834.37 70.00 Equity 2403.21 30.00 2929.02 30.00 Total 8010.71 100.00 9763.39 100.00 Asset-22 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 1788.15 70.00 2650.00 70.00 Equity 766.34 30.00 1135.70 30.00 Total 2554.49 100.00 3785.70 100.00 Asset-23 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 598.26 70.00 755.29 70.00 Equity 256.40 30.00 323.69 30.00 Total 854.66 100.00 1078.98 100.00 Asset-24 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 31832.86 70.00 43567.70 70.00 Equity 13642.66 30.00 18671.87 30.00 Total 45475.52 100.00 62239.57 100.00 Asset-25 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 25926.51 70.00 31536.78 70.00 Equity 11111.36 30.00 13515.76 30.00 Total 37037.87 100.00 45052.54 100.00 Asset-26 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 13149.51 70.00 14343.61 70.00 Equity 5635.50 30.00 6147.26 30.00 Total 18785.01 100.00 20490.87 100.00 Asset-27 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 6572.13 70.00 7410.25 70.00 Equity 2816.63 30.00 3175.82 30.00 Total 9388.76 100.00 10586.07 100.00 Asset-28 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 1014.03 70.00 1563.96 70.00 Equity 434.58 30.00 670.27 30.00 Total 1448.61 100.00 2234.23 100.00 Asset-29 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 471.29 70.00 484.13 70.00 Equity 201.98 30.00 207.48 30.00 Total 673.27 100.00 691.61 100.00 Asset-30 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 509.91 70.00 518.04 70.00 Equity 218.53 30.00 222.02 30.00 Total 728.44 100.00 740.06 100.00 Asset-31 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 11314.66 70.00 12298.37 70.00 Equity 4849.14 30.00 5270.73 30.00 Total 16163.80 100.00 17569.10 100.00 Asset-32 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 542.42 70.00 610.42 70.00 Equity 232.47 30.00 261.61 30.00 Total 774.88 100.00 872.03 100.00 Asset-33 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 49846.68 70.00 53677.57 70.00 Equity 21362.86 30.00 23004.67 30.00 Total 71209.55 100.00 76682.25 100.00 Asset-34 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 1049.67 70.00 1139.78 70.00 Equity 449.86 30.00 488.48 30.00 Total 1499.53 100.00 1628.26 100.00 Asset-35 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 1744.42 70.00 1781.82 70.00 Equity 747.61 30.00 763.64 30.00 Total 2492.02 100.00 2545.45 100.00 Asset-36 Amount as on COD (Rs. in lakh) (in %) Amount as on 31.3.2019 (Rs. in lakh) (in %) Debt 795.46 70.00 840.89 70.00 Equity 340.91 30.00 360.38 30.00 Total 1136.37 100.00 1201.27 100.00

Depreciation

40. He Petitioner's claim towards depreciation in the instant petition is found to be higher than the depreciation allowed in the previous orders. The Petitioner has neither given any justification for claiming higher depreciation than that allowed earlier nor made any specific prayer for allowing higher depreciation in the instant petition. It is observed that in previous orders, depreciation for IT equipment was allowed @5.28%. The Petitioner now at the time of truing-up of tariff of 2014-19 period has segregated the IT equipment cost from the sub-station cost and has considered depreciation rate for IT equipment @15% and NIL salvage value for IT equipment as per the 2014 Tariff Regulations. In a similar case, the Commission vide order dated 9.5.2020 in Petition No. 19/TT/2020 held as follows:

“31. We have considered the submissions of the Petitioner. The instant assets were put into commercial operation during the 2009-14 period and the tariff from the respective CODs to 31.3.2014 was allowed vide orders dated 30.8.2012 and 9.5.2013 in Petition No. 343/2010 and Petition No. 147/TT/2011 respectively. Further, the tariff of the 2009-14 period was trued up and tariff for the 2014-19 period was allowed vide order dated 25.2.2016 in Petition No. 10/TT/2015. The Petitioner did not claim any capital expenditure towards “IT Equipment” in the above said three petitions where tariff for the instant assets for the 2009-14 period was allowed, tariff of the 2009-14 period was trued up and tariff for 2014-19 period was allowed even though there was a clear provision in the 2009 Tariff Regulations and 2014 Tariff Regulations providing depreciation @15% for IT Equipment. Having failed to make a claim as per the 2009 Tariff Regulations(the period during which COD of assets was achieved), the Petitioner has now, at the time of truing up of the tariff allowed for the 2014-19 period has apportioned apart of the capital expenditure to “IT Equipment”.The Petitioner has adopted similar methodology not only in this but in some of the other petitions listed along with the instant petition on 26.2.2020. It is observed that the Petitioner has for the first time apportioned a part of the capital expenditure towards IT Equipment and has claimed depreciation under the head “IT Equipment” @15% at the time of truing up of the tariff of 2014-19 period. Regulation 8(1) of the 2014 Tariff Regulations provides for truing up of the capital expenditure including the additional capital expenditure, incurred upto 31.3.2019, admitted by the Commission after prudence check. We are of the view that scope of truing up exercise is restricted to truing up of the capital expenditure already admitted and apportionment or reapportionment of the capital expenditure cannot be allowed at the time of truing up. Therefore, we are not inclined to consider the Petitioner's prayer for apportionment of capital expenditure towards IT Equipment and allowing depreciation @ 15% from 1.4.2014 onwards. Accordingly, the depreciation @ 5.28% has been considered for IT Equipment as part of the substation upto 31.3.2019 while truing up the capital expenditure for the 2014-19period. During the 2019-24 tariff period, the IT Equipment has been considered separately and depreciation has been allowed @ 15% for the balance depreciable value of IT Equipment in accordance with Regulation 33 read with Sr. No. (p) of the Appendix-I (Depreciation Schedule) of the 2019 Tariff Regulations.”

41. In line with the above decision in order dated 9.5.2020 in Petition No. 19/TT/2020, depreciation has been considered for IT equipment @5.28% as part of the sub-station upto 31.3.2019 while truing up the transmission tariff for 2014-19 period. However, for 2019-24 tariff period, IT equipment has been considered separately and depreciation has been allowed @15% for the balance depreciable value of IT equipment in accordance with Regulation 33 of the 2019 Tariff Regulations. The gross block during 2014-19 tariff period has been depreciated at weighted average rate of depreciation (WAROD) and working thereof is at Annexure-I. WAROD has been worked out after taking into account the depreciation rates of assets as prescribed in the 2014 Tariff Regulations and, accordingly, depreciation allowed for 2014-19 tariff period are as follows:

(Rs. in lakh)

Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Asset-4 Particulars 2014-15 2015-16 2014-15 2015-16 A Opening Gross Block 29444.68 31025.23 1893.60 1904.11 B ACE 1580.55 347.72 10.51 30.17 C Closing Gross Block (A+B) 31025.23 31372.95 1904.11 1934.28 D Average Gross Block (A+C)/2 30234.96 31199.09 1898.86 1919.20 E Weighted average rate of Depreciation (WAROD) (in %) 5.18 5.18 5.30 5.30 F Aggregated Depreciable Value (D*90%) 27113.20 27980.92 1708.97 1727.28 G Combined Depreciation during the year (D*E) 1566.79 1615.11 100.58 101.77 H Cumulative Depreciation at the end of the year 3992.65 5607.76 215.51 317.28 I Remaining Aggregated Depreciable Value 23120.54 22373.16 1493.46 1410.00

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 A Opening Gross Block 33307.23 33531.73 33549.53 B ACE 224.50 17.80 98.16 C Closing Gross Block (A+B) 33531.73 33549.53 33647.69 D Average Gross Block (A+C)/2 33419.48 33540.63 33598.61 E Weighted average rate of Depreciation (WAROD) (in %) 5.18 5.18 5.18 F Aggregated Depreciable Value (D*90%) 29979.27 30088.31 30140.49 G Combined Depreciation during the year (D*E) 1732.31 1738.46 1740.60 H Cumulative Depreciation at the end of the year 7657.35 9395.81 11136.41 I Remaining Aggregated Depreciable Value 24793.65 20692.50 19004.08

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 A Opening Gross Block 4091.88 4230.21 4871.89 4880.19 5133.49 B ACE 138.33 641.68 8.30 253.30 0.00 C Closing Gross Block (A+B) 4230.21 4871.89 4880.19 5133.49 5133.49 D Average Gross Block (A+C)/2 4161.05 4551.05 4876.04 5006.84 5133.49 E Weighted average rate of Depreciation (WAROD) (in %) 4.62 4.65 4.66 4.67 4.68 F Aggregated Depreciable Value (D*90%) 3265.07 3616.07 3908.57 4026.29 4140.27 G Combined Depreciation during the year (D*E) 192.43 211.65 227.42 234.00 240.39 H Cumulative Depreciation at the end of the year 366.80 578.45 805.87 1039.87 1280.26 I Remaining Aggregated Depreciable Value 2898.27 3037.62 3102.70 2986.42 2860.01

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Opening Gross Block 8010.71 8748.91 9370.93 9753.87 B ACE 738.20 622.02 382.94 9.52 C Closing Gross Block (A+B) 8748.91 9370.93 9753.87 9763.39 D Average Gross Block (A+C)/2 8379.81 9059.92 9562.40 9758.63 E Weighted average rate of Depreciation (WAROD) (in %) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 7541.83 8153.92 8606.16 8782.76 G Combined Depreciation during the year (D*E) 294.97 478.27 504.80 515.22 H Cumulative Depreciation at the end of the year 294.97 773.23 1278.03 1793.25 I Remaining Aggregated Depreciable Value 7246.86 7380.69 7328.13 6989.52

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Opening Gross Block 2554.49 3285.63 3500.05 3776.67 B ACE 731.14 214.42 276.62 9.03 C Closing Gross Block (A+B) 3285.63 3500.05 3776.67 3785.70 D Average Gross Block (A+C)/2 2920.06 3392.84 3638.36 3781.18 E Weighted average rate of Depreciation (WAROD) (in %) 4.98 4.97 4.97 4.97 F Aggregated Depreciable Value (D*90%) 2628.05 3053.55 3274.52 3403.06 G Combined Depreciation during the year (D*E) 96.93 168.72 180.84 188.07 H Cumulative Depreciation at the end of the year 96.93 265.65 446.49 634.56 I Remaining Aggregated Depreciable Value 2531.11 2787.90 2828.03 2768.51

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 A Opening Gross Block 854.66 965.14 1028.83 1077.18 B ACE 110.48 63.69 48.35 1.80 C Closing Gross Block (A+B) 965.14 1028.83 1077.18 1078.98 D Average Gross Block (A+C)/2 909.90 996.98 1053.01 1078.08 E Weighted average rate of Depreciation (WAROD) (in %) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 818.91 897.29 947.71 970.27 G Combined Depreciation during the year (D*E) 27.96 52.64 55.60 56.92 H Cumulative Depreciation at the end of the year 27.96 80.60 136.20 193.12 I Remaining Aggregated Depreciable Value 790.95 816.69 811.51 777.15

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 A Opening Gross Block 45475.52 45613.82 58605.83 61786.31 61990.95 B ACE 138.30 12992.00 3180.48 204.64 248.62 C Closing Gross Block (A+B) 45613.82 58605.83 61786.31 61990.95 62239.57 D Average Gross Block (A+C)/2 45544.67 52109.82 60196.07 61888.63 62115.26 E Weighted average rate of Depreciation (WAROD) (in %) 5.27 5.27 5.27 5.26 5.26 F Aggregated Depreciable Value (D*90%) 40990.20 46898.84 54176.46 55699.76 55903.73 G Combined Depreciation during the year (D*E) 65.74 2744.95 3169.98 3258.10 3269.65 H Cumulative Depreciation at the end of the year 65.74 2810.69 5980.67 9238.77 12508.42 I Remaining Aggregated Depreciable Value 40924.47 44088.15 48195.79 46460.99 43395.31

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Opening Gross Block 37037.87 40564.62 42933.94 45002.12 B ACE 3526.75 2369.32 2068.18 50.42 C Closing Gross Block (A+B) 40564.62 42933.94 45002.12 45052.54 D Average Gross Block (A+C)/2 38801.25 41749.28 43968.03 45027.33 E Weighted average rate of Depreciation (WAROD) (in %) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 34921.12 37574.35 39571.23 40524.60 G Combined Depreciation during the year (D*E) 1365.42 2203.78 2320.94 2376.87 H Cumulative Depreciation at the end of the year 1365.42 3569.20 5890.14 8267.01 I Remaining Aggregated Depreciable Value 33555.70 34005.15 33681.09 32257.59

(Rs. in lakh)

Asset-26 Asset-27 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 2017-18 (Pro-rata for 291 days) 2018-19 A Opening Gross Block 18785.01 20129.39 9388.76 10159.65 B ACE 1344.38 361.48 770.89 426.42 C Closing Gross Block (A+B) 20129.39 20490.87 10159.65 10586.07 D Average Gross Block (A+C)/2 19457.20 20310.13 9774.21 10372.86 E Weighted average rate of Depreciation (WAROD) (in %) 5.16 5.16 5.10 5.11 F Aggregated Depreciable Value (D*90%) 17441.06 18208.70 8744.75 9283.54 G Combined Depreciation during the year (D*E) 806.44 1048.85 397.68 529.66 H Cumulative Depreciation at the end of the year 806.44 1855.29 397.68 927.34 I Remaining Aggregated Depreciable Value 16634.63 16353.41 8347.07 8356.20

(Rs. in lakh)

Asset-28 Asset-29 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 2017-18 (Pro-rata for 70 days) 2018-19 A Opening Gross Block 1448.61 1795.25 673.27 678.47 B ACE 346.64 438.98 5.20 13.14 C Closing Gross Block (A+B) 1795.25 2234.23 678.47 691.61 D Average Gross Block (A+C)/2 1621.93 2014.74 675.87 685.04 E Weighted average rate of Depreciation (WAROD) (in %) 5.30 5.30 5.28% 5.28% F Aggregated Depreciable Value (D*90%) 1459.74 1813.27 608.29 616.54 G Combined Depreciation during the year (D*E) 31.79 106.70 6.84 36.17 H Cumulative Depreciation at the end of the year 31.79 138.50 6.84 43.01 I Remaining Aggregated Depreciable Value 1427.95 1674.77 601.44 573.52

(Rs. in lakh)

Asset-30 Asset-31 Asset-32 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 2018-19 (Pro-rata for 270 days) 2018-19 (Pro-rata for 291 days) A Opening Gross Block 728.44 733.64 16163.80 774.88 B ACE 5.20 6.42 1405.30 97.15 C Closing Gross Block (A+B) 733.64 740.06 17569.10 872.03 D Average Gross Block (A+C)/2 731.04 736.85 16866.45 823.46 E Weighted average rate of Depreciation (WAROD) (in %) 5.28 5.28 5.13 5.17 F Aggregated Depreciable Value (D*90%) 657.94 663.16 15113.06 741.11 G Combined Depreciation during the year (D*E) 7.40 38.91 640.42 33.94 H Cumulative Depreciation at the end of the year 7.40 46.31 640.42 33.94 I Remaining Aggregated Depreciable Value 650.53 616.86 14472.65 707.17

(Rs. in lakh)

Asset-33 Asset-34 Asset-35 Asset-36 Particulars 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 65 days) A Opening Gross Block 71209.55 1499.53 2492.02 1136.37 B ACE 5472.70 128.73 53.43 64.90 C Closing Gross Block (A+B) 76682.25 1628.26 2545.45 1201.27 D Average Gross Block (A+C)/2 73945.90 1563.89 2518.74 1168.82 E Weighted average rate of Depreciation (WAROD) (in %) 5.20 5.29 4.55 5.28 F Aggregated Depreciable Value (D*90%) 66551.31 1407.50 1958.19 1051.94 G Combined Depreciation during the year (D*E) 1275.63 27.42 38.01 10.99 H Cumulative Depreciation at the end of the year 1275.63 27.42 38.01 10.99 I Remaining Aggregated Depreciable Value 65275.68 1380.09 1920.18 1040.95

Interest on Loan (“IoL”)

42. The Petitioner has claimed the weighted average rate of interest based on its actual loan portfolio and actual rate of interest on loan. Accordingly, IoL is calculated based on actual interest rate, in accordance with Regulation 26 of the 2014 Tariff Regulations. The details of IoL allowed are as follows:

(Rs. in lakh)

Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Asset-4 Particulars 2014-15 2015-16 2014-15 2015-16 A Gross Normative Loan 20611.28 21717.66 1325.52 1332.88 B Cumulative Repayments upto Previous Year 2425.86 3992.65 114.93 215.51 C Net Loan-Opening (A-B) 18185.42 17725.01 1210.59 1117.37 D Addition due to ACE 1106.39 243.40 7.36 21.12 E Repayment during the year 1566.79 1615.11 100.58 101.77 F Net Loan-Closing (C+D-E) 17725.01 16353.31 1117.37 1036.72 G Average Loan (C+F)/2 17955.21 17039.16 1163.98 1077.04 H Weighted Average Rate of Interest on Loan (in %) 9.23 9.22 9.28 9.27 I Interest on Loan (G*H) 1657.68 1570.69 108.06 99.88

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 A Gross Normative Loan 23315.06 23472.21 23484.67 B Cumulative Repayments upto Previous Year 5925.04 7657.35 9395.81 C Net Loan-Opening (A-B) 17390.02 15814.87 14088.87 D Addition due to ACE 157.15 12.46 68.71 E Repayment during the year 1732.31 1738.46 1740.60 F Net Loan-Closing (C+D-E) 15814.87 14088.87 12416.97 G Average Loan (C+F)/2 16602.44 14951.87 13252.92 H Weighted Average Rate of Interest on Loan (in %) 9.21 9.19 9.19 I Interest on Loan (G*H) 1528.50 1374.47 1217.69

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 A Gross Normative Loan 2864.32 2961.16 3410.34 3416.15 3593.46 B Cumulative Repayments upto Previous Year 174.37 366.80 578.45 805.87 1039.87 C Net Loan-Opening (A-B) 2689.95 2594.36 2831.89 2610.28 2553.59 D Addition due to ACE 96.84 449.18 5.81 177.31 0.00 E Repayment during the year 192.43 211.65 227.42 234.00 240.39 F Net Loan-Closing (C+D-E) 2594.36 2831.89 2610.28 2553.59 2313.20 G Average Loan (C+F)/2 2642.15 2713.12 2721.08 2581.93 2433.39 H Weighted Average Rate of Interest on Loan (in %) 9.15 9.08 9.03 8.96 8.90 I Interest on Loan (G*H) 241.85 246.42 245.72 231.33 216.46

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Gross Normative Loan 5607.49 6124.23 6559.65 6827.71 B Cumulative Repayments upto Previous Year 0.00 294.97 773.23 1278.03 C Net Loan-Opening (A-B) 5607.49 5829.27 5786.42 5549.68 D Addition due to ACE 516.74 435.41 268.06 6.66 E Repayment during the year 294.97 478.27 504.80 515.22 F Net Loan-Closing (C+D-E) 5829.27 5786.42 5549.68 5041.12 G Average Loan (C+F)/2 5718.38 5807.84 5668.05 5295.40 H Weighted Average Rate of Interest on Loan (in %) 8.95 8.86 8.67 8.60 I Interest on Loan (G*H) 341.34 514.34 491.59 455.52

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Gross Normative Loan 1788.15 2299.95 2450.04 2643.68 B Cumulative Repayments upto Previous Year 0.00 96.93 265.65 446.49 C Net Loan-Opening (A-B) 1788.15 2203.01 2184.39 2197.19 D Addition due to ACE 511.80 150.09 193.63 6.32 E Repayment during the year 96.93 168.72 180.84 188.07 F Net Loan-Closing (C+D-E) 2203.01 2184.39 2197.19 2015.44 G Average Loan (C+F)/2 1995.58 2193.70 2190.79 2106.31 H Weighted Average Rate of Interest on Loan (in %) 8.98 8.88 8.62 8.51 I Interest on Loan (G*H) 119.41 194.86 188.91 179.26

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 A Gross Normative Loan 598.26 675.60 720.18 754.03 B Cumulative Repayments upto Previous Year 0.00 27.96 80.60 136.20 C Net Loan-Opening (A-B) 598.26 647.64 639.58 617.83 D Addition due to ACE 77.33 44.59 33.85 1.26 E Repayment during the year 27.96 52.64 55.60 56.92 F Net Loan-Closing (C+D-E) 647.64 639.58 617.83 562.17 G Average Loan (C+F)/2 622.95 643.61 628.70 590.00 H Weighted Average Rate of Interest on Loan (in %) 9.17 9.15 8.97 8.87 I Interest on Loan (G*H) 33.23 58.88 56.39 52.36

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 A Gross Normative Loan 31832.86 31929.67 41024.08 43250.41 43393.66 B Cumulative Repayments upto Previous Year 0.00 65.74 2810.69 5980.67 9238.77 C Net Loan-Opening (A-B) 31832.86 31863.94 38213.39 37269.74 34154.89 D Addition due to ACE 96.81 9094.40 2226.34 143.25 174.03 E Repayment during the year 65.74 2744.95 3169.98 3258.10 3269.65 F Net Loan-Closing (C+D-E) 31863.94 38213.39 37269.74 34154.89 31059.27 G Average Loan (C+F)/2 31848.40 35038.66 37741.56 35712.32 32607.08 H Weighted Average Rate of Interest on Loan (in %) 9.07 9.00 8.79 8.59 8.56 I Interest on Loan (G*H) 79.11 3154.86 3317.64 3068.01 2790.20

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Gross Normative Loan 25926.51 28395.23 30053.76 31501.48 B Cumulative Repayments upto Previous Year 0.00 1365.42 3569.20 5890.14 C Net Loan-Opening (A-B) 25926.51 27029.81 26484.55 25611.34 D Addition due to ACE 2468.73 1658.52 1447.73 35.29 E Repayment during the year 1365.42 2203.78 2320.94 2376.87 F Net Loan-Closing (C+D-E) 27029.81 26484.55 25611.34 23269.77 G Average Loan (C+F)/2 26478.16 26757.18 26047.95 24440.56 H Weighted Average Rate of Interest on Loan (in %) 9.09 8.98 8.61 8.35 I Interest on Loan (G*H) 1604.52 2401.63 2242.39 2041.23

(Rs. in lakh)

Asset-26 Asset-27 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 2017-18 (Pro-rata for 291 days) 2018-19 A Gross Normative Loan 13149.51 14090.57 6572.13 7111.76 B Cumulative Repayments upto Previous Year 0.00 806.44 0.00 397.68 C Net Loan-Opening (A-B) 13149.51 13284.14 6572.13 6714.08 D Addition due to ACE 941.07 253.04 539.62 298.49 E Repayment during the year 806.44 1048.85 397.68 529.66 F Net Loan-Closing (C+D-E) 13284.14 12488.32 6714.08 6482.91 G Average Loan (C+F)/2 13216.82 12886.23 6643.11 6598.50 H Weighted Average Rate of Interest on Loan (in %) 8.89% 8.79% 8.38 8.19 I Interest on Loan (G*H) 943.43 1132.53 443.82 540.43

(Rs. in lakh)

Asset-28 Asset-29 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 2017-18 (Pro-rata for 70 days) 2018-19 A Gross Normative Loan 1014.03 1256.68 471.29 474.93 B Cumulative Repayments upto Previous Year 0.00 31.79 0.00 6.84 C Net Loan-Opening (A-B) 1014.03 1224.88 471.29 468.09 D Addition due to ACE 242.65 307.29 3.64 9.20 E Repayment during the year 31.79 106.70 6.84 36.17 F Net Loan-Closing (C+D-E) 1224.88 1425.47 468.09 441.12 G Average Loan (C+F)/2 1119.46 1325.18 469.69 454.60 H Weighted Average Rate of Interest on Loan (in %) 7.96 7.66 8.54 8.50 I Interest on Loan (G*H) 32.97 101.47 7.70 38.64

(Rs. in lakh)

Asset-30 Asset-31 Asset-32 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 2018-19 (Pro-rata for 270 days) 2018-19 (Pro-rata for 291 days) A Gross Normative Loan 509.91 513.55 11314.66 542.42 B Cumulative Repayments upto Previous Year 0.00 7.40 0.00 0.00 C Net Loan-Opening (A-B) 509.91 506.15 11314.66 542.42 D Addition due to ACE 3.64 4.49 983.71 68.01 E Repayment during the year 7.40 38.91 640.42 33.94 F Net Loan-Closing (C+D-E) 506.15 471.73 11657.95 576.48 G Average Loan (C+F)/2 508.03 488.94 11486.31 559.45 H Weighted Average Rate of Interest on Loan (in %) 8.53 8.50 8.35 8.19 I Interest on Loan (G*H) 8.32 41.54 709.51 36.55

(Rs. in lakh)

Asset-33 Asset-34 Asset-35 Asset-36 Particulars 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 65 days) A Gross Normative Loan 49846.68 1049.67 1744.42 795.46 B Cumulative Repayments upto Previous Year 0.00 0.00 0.00 0.00 C Net Loan-Opening (A-B) 49846.68 1049.67 1744.42 795.46 D Addition due to ACE 3830.89 90.11 37.40 45.43 E Repayment during the year 1275.63 27.42 38.01 10.99 F Net Loan-Closing (C+D-E) 52401.94 1112.36 1743.80 829.90 G Average Loan (C+F)/2 51124.31 1081.02 1744.11 812.68 H Weighted Average Rate of Interest on Loan (in %) 7.12 8.09 7.96 8.36 I Interest on Loan (G*H) 1206.54 28.98 46.02 12.09

Return on Equity (“RoE”)

43. The Petitioner has claimed RoE in respect of the transmission assets in terms of Regulation 24 and Regulation 25 of the 2014 Tariff Regulations. The Petitioner has submitted that they are liable to pay income tax at MAT rates and has claimed the following effective tax rates for 2014-19 tariff period:

Year Claimed effective tax (in %) Grossed-up RoE [(Base Rate)/(1-t)] (in %) 2014-15 21.018 19.625 2015-16 21.382 19.716 2016-17 21.338 19.705 2017-18 21.337 19.704 2018-19 21.549 19.758

44. The Commission vide order dated 27.4.2020 in Petition No. 274/TT/2019 has already arrived at the effective tax rate for the Petitioner based on the notified MAT rates as follows:

Year Notified MAT rates (inclusive of surcharge & cess) (in %) Effective tax (in %) 2014-15 20.961 20.961 2015-16 21.342 21.342 2016-17 21.342 21.342 2017-18 21.342 21.342 2018-19 21.549 21.549

45. MAT rates as considered in order dated 27.4.2020 in Petition No. 274/TT/2019 are considered for the purpose of grossing up of the rate of RoE for truing up of the tariff of 2014-19 tariff period in terms of the provisions of the 2014 Tariff Regulations and the same is as follows:

Year MAT Rate (in %) Grossed-up RoE [(Base Rate)/(1-t)] (in %) 2014-15 20.961 19.610 2015-16 21.342 19.705 2016-17 21.342 19.705 2017-18 21.342 19.705 2018-19 21.549 19.758

46. Accordingly, trued up RoE allowed in respect of the transmission assets for the 2014-19 are as follows:

(Rs. in lakh)

Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Asset-4 Particulars 2014-15 2015-16 2014-15 2015-16 A Opening Equity 8833.40 9307.57 568.08 571.23 B Addition due to ACE 474.17 104.32 3.15 9.05 C Closing Equity (A+B) 9307.57 9411.89 571.23 580.28 D Average Equity (A+C)/2 9070.49 9359.73 569.66 575.76 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 20.961 21.342 20.961 21.342 G Rate of Return on Equity (Pre-tax) 19.610 19.705 19.610 19.705 H Return on Equity (Pre-tax) (D*G) 1778.72 1844.33 111.71 113.45

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 A Opening Equity 9992.17 10059.52 10064.86 B Addition due to ACE 67.35 5.34 29.45 C Closing Equity (A+B) 10059.52 10064.86 10094.31 D Average Equity (A+C)/2 10025.84 10062.19 10079.58 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.342 21.342 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 1975.59 1982.75 1991.52

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 A Opening Equity 1227.56 1269.05 1461.55 1464.04 1540.03 B Addition due to ACE 41.49 192.50 2.49 75.99 0.00 C Closing Equity (A+B) 1269.05 1461.55 1464.04 1540.03 1540.03 D Average Equity (A+C)/2 1248.31 1365.30 1462.80 1502.04 1540.03 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 20.961 21.342 21.342 21.342 21.549 G Rate of Return on Equity (Pretax) 19.610 19.705 19.705 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 244.79 269.03 288.24 295.98 304.28

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Opening Equity 2403.21 2624.67 2811.28 2926.16 B Addition due to ACE 221.46 186.61 114.88 2.86 C Closing Equity (A+B) 2624.67 2811.28 2926.16 2929.02 D Average Equity (A+C)/2 2513.94 2717.97 2868.72 2927.59 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.342 21.342 21.342 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.705 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 330.25 535.58 565.28 578.43

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Opening Equity 766.34 985.68 1050.00 1132.99 B Addition due to ACE 219.34 64.33 82.99 2.71 C Closing Equity (A+B) 985.68 1050.00 1132.99 1135.70 D Average Equity (A+C)/2 876.01 1017.84 1091.50 1134.34 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.342 21.342 21.342 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.705 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 115.08 200.57 215.08 224.12

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 A Opening Equity 256.40 289.54 308.65 323.15 B Addition due to ACE 33.14 19.11 14.51 0.54 C Closing Equity (A+B) 289.54 308.65 323.15 323.69 D Average Equity (A+C)/2 272.97 299.10 315.90 323.42 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.342 21.342 21.342 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.705 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 31.30 58.94 62.25 63.90

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 A Opening Equity 13642.66 13684.15 17581.75 18535.89 18597.28 B Addition due to ACE 41.49 3897.60 954.14 61.39 74.59 C Closing Equity (A+B) 13684.15 17581.75 18535.89 18597.28 18671.87 D Average Equity (A+C)/2 13663.40 15632.95 18058.82 18566.59 18634.58 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 20.961 21.342 21.342 21.342 21.549 G Rate of Return on Equity (Pre-tax) 19.610 19.705 19.705 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 73.41 3080.47 3558.49 3658.55 3681.82

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Opening Equity 11111.36 12169.39 12880.18 13500.64 B Addition due to ACE 1058.03 710.80 620.45 15.13 C Closing Equity (A+B) 12169.39 12880.18 13500.64 13515.76 D Average Equity (A+C)/2 11640.37 12524.78 13190.41 13508.20 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.342 21.342 21.342 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.705 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 1529.16 2468.01 2599.17 2668.95

(Rs. in lakh)

Asset-26 Asset-27 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 2017-18 (Pro-rata for 291 days) 2018-19 A Opening Equity 5635.50 6038.82 2816.63 3047.90 B Addition due to ACE 403.31 108.44 231.27 127.93 C Closing Equity (A+B) 6038.82 6147.26 3047.90 3175.82 D Average Equity (A+C)/2 5837.16 6093.04 2932.26 3111.86 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.342 21.549 21.342 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.758 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 923.32 1203.86 460.66 614.84

(Rs. in lakh)

Asset-28 Asset-29 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 2017-18 (Pro-rata for 70 days) 2018-19 A Opening Equity 434.58 538.58 201.98 203.54 B Addition due to ACE 103.99 131.69 1.56 3.94 C Closing Equity (A+B) 538.58 670.27 203.54 207.48 D Average Equity (A+C)/2 486.58 604.42 202.76 205.51 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.342 21.549 21.342 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.758 19.705 19.758 H Return on Equity (Pre-tax) (D*G) 35.46 119.42 7.66 40.61

(Rs. in lakh)

Asset-30 Asset-31 Asset-32 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 2018-19 (Pro-rata for 270 days) 2018-19 (Pro-rata for 291 days) A Opening Equity 218.53 220.09 4849.14 232.47 B Addition due to ACE 1.56 1.93 421.59 29.15 C Closing Equity (A+B) 220.09 222.02 5270.73 261.61 D Average Equity (A+C)/2 219.31 221.05 5059.94 247.04 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.342 21.549 21.549 21.549 G Rate of Return on Equity (Pretax) 19.705 19.758 19.758 19.758 H Return on Equity (Pre-tax) (D*G) 8.29 43.68 739.54 38.91

(Rs. in lakh)

Asset-33 Asset-34 Asset-35 Asset-36 Particulars 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 65 days) A Opening Equity 21362.86 449.86 747.61 340.91 B Addition due to ACE 1641.81 38.62 16.03 19.47 C Closing Equity (A+B) 23004.67 488.48 763.64 360.38 D Average Equity (A+C)/2 22183.77 469.17 755.62 350.65 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 21.549 21.549 21.549 21.549 G Rate of Return on Equity (Pre-tax) 19.758 19.758 19.758 19.758 H Return on Equity (Pre-tax) (D*G) 1453.02 30.73 49.49 12.34

Operation & Maintenance Expenses (“O&M Expenses”)

47. The details of O&M Expenses claimed by the Petitioner in respect of the transmission assets as per Regulation 29(4)(a) of the 2014 Tariff Regulations for the purpose of tariff are as follows:

(Rs. in lakh)

Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Particulars 2014-15 2015-16 Sub-station Bays 132 kV : Silchar : 132 kV Srikona-I Bay 1 1 132 kV : Silchar : 132 kV Srikona-II Bay 1 1 132 kV : Srikona : 132 kV Silchar-I Bay 1 1 132 kV : Srikona : 132 kV Silchar-II Bay 1 1 132 kV : Silchar : Badarpur Bay-I 1 1 132 kV : Silchar : Badarpur Bay-II 1 1 132 kV : Badarpur : Silchar Bay-I 1 1 132 kV : Badarpur : Silchar Bay-II 1 1 132 kV : Silchar : Hailakadi 2 2 132 kV : Silchar : ICT-I Bay 1 1 132 kV : Silchar : ICT II Bay 1 1 132 kV : Surajmaninagar : 132 kV Palatana-I Bay at Surajmaninagar Sub-station 2 2 400 kV : Silchar : ICT II Bay 1 1 400 kV : Silchar-400 kV Palatana Bay-I 1 1 400 kV : Silchar-400 kV Palatana Bay-II 1 1 400 kV : Silchar : ICT-I Bay 1 1 400 kV : Silchar-400 kV Palatana Slr Bay-I 1 1 400 kV : Silchar-400 kV Palatana Slr Bay-II 1 1 400 kV : Silchar - 400 kV Bus Reactor-I Bay 1 1 400 kV : Silchar - 400 kV Bus Reactor-II Bay 1 1 400 kV : Bongaigaon : Bus Reactor 1 1 400 kV : Silchar-Bongaigaon-I Bay AT Silchal 1 1 400 kV : Silchar Slr Bay-I 1 1 400 kV : Silchar : Bongaigaon 1 1 400 kV : Silchar : Slr Bay 1 1 400 kV : Bongaigaon : Silchar - I Bay 1 1 400 kV : Bongaigaon : Silchar - II Bay 1 1 400 kV : Bongaigaon : Switchable Line Reactor Bay-400 kV : I for Silchar-I 1 1 400 kV : Bongaigaon : Switchable Line Reactor Bay-II for Silchar-II 1 1 Total 132 kV 14 14 400 kV 17 17 Norms 132 kV 30.15 31.15 400 kV 60.30 62.30 Total Sub-station Bays O&M Expenses 1447.20 1495.20 AC Lines 132 kV D/C Silchar-Srikona Transmission Line 1.200 1.200 132 kV D/C Silchar-Badarpur Transmission Line 19.200 19.200 132 kV D/C Silchar-Hailakandi Transmission Line 15.000 15.000 400 kV D/C Palatana-Surajmaninagar Transmission Line 37.200 37.200 Total S/C (Single Conductor) 15.000 15.000 D/C Twin/Triple Conductor 37.200 37.200 D/C Single Conductor 20.400 20.400 Norms S/C (Single Conductor) 0.202 0.209 D/C Twin/Triple Conductor 0.707 0.731 D/C Single Conductor 0.303 0.313 Total Transmission Line 35.51 36.71 Total O&M Expenses 1482.71 1531.91

(Rs. in lakh)

Asset-4 (1.4.2014 to 31.3.2016) Particulars 2014-15 2015-16 Sub-station Bays 400 kV : Bongaigaon : BTPS Bongaigaon 2 2 Norms 400 kV 60.30 62.30 Total Sub-station Bays O&M Expenses 120.60 124.60 AC & HVDC Lines 400 kV D/C BTPS - Bongaigaon Transmission Line 3.187 3.187 Norms D/C Twin/Triple Conductor 0.707 0.731 Total Transmission Line 2.25 2.33 Total O&M Expenses 122.85 126.93

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 Sub-station Bays 132 kV : Silchar : 132 kV Srikona-I Bay 1 1 1 132 kV : Silchar : 132 kV Srikona-II Bay 1 1 1 132 kV : Srikona : 132 kV Silchar-I Bay 1 1 1 132 kV : Srikona : 132 kV Silchar-II Bay 1 1 1 132 kV : Silchar : Badarpur Bay-I 1 1 1 132 kV : Silchar : Badarpur Bay-II 1 1 1 132 kV : Badarpur : Silchar Bay-I 1 1 1 132 kV : Badarpur : Silchar Bay-II 1 1 1 132 kV : Silchar : Hailakadi 2 2 2 132 kV : Silchar : ICT-I Bay 1 1 1 132 kV : Silchar : ICT II Bay 1 1 1 132 kV : Surajmaninagar : 132kV Palatana-I Bay at Surajmaninagar Sub-station 2 2 2 400 kV : Silchar : ICT II Bay 1 1 1 400 kV : Silchar-400 kV Palatana Bay-I 1 1 1 400 kV : Silchar-400 kV Palatana Bay-II 1 1 1 400 kV : Silchar : ICT-I Bay 1 1 1 400 kV : Silchar-400 kV Palatana Slr Bay-I 1 1 1 400 kV : Silchar-400 kV Palatana Slr Bay-II 1 1 1 400 kV : Silchar - 400 kV Bus Reactor-I Bay 1 1 1 400 kV : Silchar - 400 kV Bus Reactor-II Bay 1 1 1 400 kV : Bongaigaon : Bus Reactor 1 1 1 400 kV : Silchar-Bongaigaon-I Bay AT Silchar 1 1 1 400 kV : Silchar Slr Bay-I 1 1 1 400 kV : Silchar : Bongaigaon 1 1 1 400 kV : Silchar : Slr Bay 1 1 1 400 kV : Bongaigaon : Silchar - I Bay 1 1 1 400 kV : Bongaigaon : Silchar - II Bay 1 1 1 400 kV : Bongaigaon : Switchable Line Reactor Bay-400 kV : I for Silchar-I 1 1 1 400 kV : Bongaigaon : Switchable Line Reactor Bay-II for Silchar-II 1 1 1 400 kV : Bongaigaon : BTPS Bongaigaon 2 2 2 Total 132 kV 14 14 14 400 kV 19 19 19 Norms 132 kV 32.18 33.25 34.36 400 kV 64.37 66.51 68.71 Total Sub-station Bays O&M Expenses 1673.55 1729.19 1786.53 AC Lines 132 kV D/C Silchar-Srikona Transmission Line 1.200 1.200 1.200 132 kV D/C Silchar-Badarpur Transmission Line 19.200 19.200 19.200 132 kV D/C Silchar-Hailakandi Transmission Line 15.000 15.000 15.000 400 kV D/C Palatana-Surajmaninagar Transmission Line 37.200 37.200 37.200 400 kV D/C BTPS - Bongaigaon Transmission Line 3.187 3.187 3.187 Total S/C (Single Conductor) 15.000 15.000 15.000 D/C Twin/Triple Conductor 40.387 40.387 40.387 D/C Single Conductor 20.400 20.400 20.400 Norms S/C (Single Conductor) 0.216 0.223 0.230 D/C Twin/Triple Conductor 0.755 0.780 0.806 D/C Single Conductor 0.324 0.334 0.346 Total Transmission Line 40.34 41.66 43.06 Total O&M Expenses 1713.89 1770.85 1829.59

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 Sub-station Bays 220 kV : Mariani : Kathalguri Bay 1 1 1 1 1 220 kV : Mariani : Misa Bay 1 1 1 1 1 220 kV : Mariani : 20 MVAR Bus Reactor Bay Ta Mariani Switching Station 1 1 1 1 1 132 kV : Ziro : 132 kV, 4X6.6 MVAR Bus Reactor (Single Phase) at Ziro Substation 1 1 1 1 1 132 kV : Imphal : 132 kV Bus Reactor Bay at Imphal Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Imphal-Ningthoukhong Bay at Imphal Substation 1 1 1 1 1 132 kV : Imphal : 132 kV Bay of ICT-I at Imphal (New) Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Bay of ICT-II at Imphal Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Imphal Bay 1 1 1 1 1 Total 220 kV 3 3 3 3 3 132 kV 6 6 6 6 6 Norms 220 kV 42.21 43.61 45.06 46.55 48.10 132 kV 30.15 31.15 32.18 33.25 34.36 Total Sub-station Bays O&M Expenses 307.53 317.73 328.26 339.15 350.46 AC Lines LILO of 220 kV Misa-Kathalguri Line at Mariani Switching Station 0.170 0.170 0.170 0.170 0.170 Loop in Line of 132 kV Imphal-Ningthoukhong Line at Imphal Substation 0.352 0.352 0.352 0.352 0.352 Loop in Line of 132 kV Imphal-Ningthoukhong Line at Imphal Substation 0.090 0.090 0.090 0.090 0.090 Loop Out Line of 132 kV Imphal-Ningthoukhong Line alongwith 1 Number Associated Bay at Imphal Substation 0.339 0.339 0.339 0.339 0.339 Total S/C (Single Conductor) 0.691 0.691 0.691 0.691 0.691 D/C Twin/Triple Conductor 0.17 0.17 0.17 0.17 0.17 D/C Single Conductor 0.09 0.09 0.09 0.09 0.09 Norms S/C (Single Conductor) 0.202 0.209 0.216 0.223 0.230 D/C Twin/Triple Conductor 0.707 0.731 0.755 0.780 0.806 D/C Single Conductor 0.303 0.313 0.324 0.334 0.346 Total Transmission Line 0.29 0.30 0.31 0.32 0.33 Total O&M Expenses 307.82 318.03 328.57 339.47 350.79

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Sub-station Bays 220 kV : Mariani : 220 kV D/C Marian-Mokokchung Line with Associated Bays 2 2 2 2 220 kV : Mokokchung : Mariani-Mokokchung Line Bay 2 2 2 2 Total 220 kV 4 4 4 4 Norms 220 kV 43.61 45.06 46.55 48.10 Total Sub-station Bays O&M Expenses 174.44 180.24 186.20 192.40 AC & HVDC Lines 220 kV D/C Marian-Mokokchung Line with Associated Bays 48.410 48.410 48.410 48.410 Norms D/C Single Conductor 0.313 0.324 0.334 0.346 Total Transmission Line 15.15 15.68 16.17 16.75 Total O&M Expenses 126.39 195.92 202.37 209.15

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Sub-station Bays 132 kV : Mokokchung : Bays at MKK for MKK-MKK D/C Transmission Line 2 2 2 2 132 kV : Mokokchung : 132 kV D/C MKK-MKK Transmission Line Bays at MKK 2 2 2 2 132 kV : Mokokchung : ICT-II Bay at MKK 1 1 1 1 220 kV : Mokokchung : ICT-II Bay at MKK HV Side 1 1 1 1 Total 132 kV 5 5 5 5 220 kV 1 1 1 1 Norms 132 kV 31.15 32.18 33.25 34.36 220 kV 43.61 45.06 46.55 48.10 Total Sub-station Bays O&M Expenses 199.36 205.96 212.80 219.90 AC & HVDC Lines 132 kV D/C Mokok-Mokokchung Transmission 1.45 1.45 1.45 1.45 Line alongwith associated Bays Norms D/C Single Conductor 0.313 0.324 0.334 0.346 Total Transmission Line 0.45 0.47 0.48 0.50 Total O&M Expenses 133.21 206.43 213.28 220.40

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 Sub-station Bays 132 kV : Mokokchung : 3*10 MVA, 220/132, ICT-I along with Associated Bays at Mokochung (PG) Sub-station 1 1 1 1 220 kV : Mokokchung : 3*10 MVA, 220/132, ICT-I along with Associated Bays at Mokochung (PG) Sub-station 1 1 1 1 Norms 132 kV 31.15 32.18 33.25 34.36 220 kV 43.61 45.06 46.55 48.10 Total Sub-station Bays O&M Expenses 74.76 77.24 79.80 82.46 Total O&M Expenses 43.51 77.24 79.80 82.46

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 Sub-station Bays 132 kV : Silchar : 132 kV Bay - I for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Silchar : 132 kV Bay - II for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Imphal : 132 kV Bay - I for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Imphal : 132 kV Bay - II for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 Total 132 kV 4 4 4 4 4 Norms 132 kV 30.15 31.15 32.18 33.25 34.36 Total Sub-station Bays O&M Expenses 120.60 124.60 128.72 133.00 137.44 AC & HVDC Lines 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 166.976 166.976 166.976 166.976 166.976 Norms D/C Twin/Triple Conductor 0.707 0.731 0.755 0.780 0.806 Total Transmission Line 118.05 122.06 126.07 130.24 134.58 Total O&M Expenses 6.54 246.66 254.79 263.24 272.02

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Sub-station Bays 132 kV : Puba kanchanbari : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line(Charged at 132 kV) alongwith with Asso. 2 2 2 2 132 kV : Silchar : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) Alongwith with Asso. 1 1 1 1 132 kV : Silchar : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) Alongwith With Asso. 1 1 1 1 Total 132 kV 4 4 4 4 Norms 132 kV 31.15 32.18 33.25 34.36 Total Sub-station Bays O&M Expenses 124.60 128.72 133.00 137.44 AC & HVDC Lines 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) Alongwith with Asso. 128.77 128.77 128.77 128.77 Norms D/C Twin/Triple Conductor 0.731 0.755 0.780 0.806 Total Transmission Line 94.13 97.22 100.44 103.79 Total O&M Expenses 145.82 225.94 233.44 241.23

(Rs. in lakh)

Asset-26 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 Sub-station Bays 132 kV : Pasighat : 132 kV Roing Bay-132/33 kV Pasighat Sub-station-Roing 1 1 132 kV : Roing : Pasighat-Roing-Roing 1 1 132 kV : Roing : ICT I-Roing-Roing 1 1 132 kV : Roing : ICT I-Roing-Roing 1 1 132 kV : Roing : ICT II-Roing-Roing 1 1 132 kV : Roing : ICT II-Roing-Roing 1 1 132 kV : Roing : Bus Reactor-Roing-Roing 1 1 Total 132 kV 7 7 Norms 132 kV 33.25 34.36 Total Sub-station Bays O&M Expenses 232.75 240.52 AC & HVDC Lines 132 kV S/C (on D/C Tower) Pasighat-Roing Transmission Line 102.88 102.88 Norms D/C Single Conductor 0.334 0.346 Total Transmission Line 34.36 35.60 Total O&M Expenses 214.42 276.12

(Rs. in lakh)

Asset-27 Particulars 2017-18 (Pro-rata for 291 days) 2018-19 Sub-station Bays 132 kV : Tezu : Roing-I Bay at Tezu 1 1 132 kV : Tezu : Bus Reactor Bay at Tezu 1 1 132 kV : Roing : Tezu-I Bay at Roing 1 1 Total 132 kV 3 3 Norms 132 kV 33.25 34.36 Total Sub-station Bays O&M Expenses 99.75 103.08 AC & HVDC Lines 132 kV S/C (on D/C Tower) Roing Tezu Transmission Line 72.45 72.45 Norms D/C Single Conductor 0.334 0.346 Total Transmission Line 24.20 25.07 Total O&M Expenses 98.82 128.15

(Rs. in lakh)

Asset-28 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 Sub-station Bays 132 kV : Halakandi : 132 kV D/C Silchar-Hailkand Transmission Line 2 2 Norms 132 kV 33.25 34.36 Total Sub-station Bays O&M Expenses 66.50 68.72 AC & HVDC Lines 132 kV D/C Silchar-Hailkand Transmission Line 12.76 12.76 Norms D/C Single Conductor 0.334 0.346 Total Transmission Line 4.26 4.41 Total O&M Expenses 26.17 73.13

(Rs. in lakh)

Asset-29 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 Sub-station Bays 132 kV : Tezu : ICT I-Tezu-Tezu (132) 1 1 132 kV : Tezu : ICT I-Tezu-Tezu (132) 1 1 Total 132 kV 2 2 Norms 132 kV 33.25 34.36 Total Sub-station Bays O&M Expenses 66.50 68.72 Total O&M Expenses 12.75 68.72

(Rs. in lakh)

Asset-30 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 Sub-station Bays 132 kV : Tezu : ICT II-Tezu-Tezu (132) 1 1 132 kV : Tezu : ICT II-Tezu-Tezu (132) 1 1 Total 132 kV 2 2 Norms 132 kV 33.25 34.36 Total Sub-station Bays O&M Expenses 66.50 68.72 Total O&M Expenses 12.75 68.72

(Rs. in lakh)

Asset-31 Particulars 2018-19 (Pro-rata for 270 days) Sub-station Bays 132 kV : Namsai : Tezu-Namsai-Namsai (132) 1 132 kV : Tezu : Namsai-Tezu-Tezu (132) 1 132 kV : Namsai : 7X5 MVA 132/33 kV 1-PH ICT-I - II (Including 1 Number Spare Transformer) at Namsai Sub-station 4 Total 132 kV 6 Norms 132 kV 34.36 Total Sub-station Bays O&M Expenses 206.16 AC Lines 132 kV S/C (On D/C Towers) Tezu-Namsai Transmission Line 95.097 Norms D/C Single Conductor 0.346 Total Transmission Line 32.90 Total O&M Expenses 176.84

(Rs. in lakh)

Asset-32 Particulars 2018-19 (Pro-rata for 291 days) Sub-station Bays 132 kV : Namsai : 4X6.67 MVAR 145 kV 1-PH Bus Reactor (Including 1 Number Spare Reactor) at Namsai Sub-station 1 Norms 132 kV 34.36 Total Sub-station Bays O&M Expenses 34.36 Total O&M Expenses 27.39

(Rs. in lakh)

Asset-33 Particulars 2018-19 (Pro-rata for 121 days) Sub-station Bays 132 kV : Mleriat : Silchar I-Mleriat-Mleriat (132 kV GIS) 1 132 kV : Mleriat : Silchar II-Mleriat-Mleriat (132 kV GIS) 1 132 kV : Silchar : Mehleriat I-Silchar-Silchar 1 132 kV : Silchar : Mehleriat II-Silchar-Silchar 1 Total 132 kV 4 Norms 132 kV 34.36 Total Sub-station Bays O&M Expenses 137.44 AC Lines 400 kV D/C Silchar-Mleiriat (New) Transmission Line (Charges at 132 kV) along with associated Bays at Silcher and Mleiriat 143.256 Norms D/C Twin/Triple Conductor 0.806 Total Transmission Line 115.46 Total O&M Expenses 83.84

(Rs. in lakh)

Asset-34 Particulars 2018-19 (Pro-rata for 121 days) Sub-station Bays 132 kV : Meeriat-Aizwal : Aizwal-Mleriat-Mleriat (132 kV GIS) 1 132 kV : Mleriat-Aizwal : Zemabawk-Mleriat-Mleriat (132 kV GIS) 1 Total 132 kV 2 Norms 132 kV 34.36 Total Sub-station Bays O&M Expenses 68.72 AC Lines LILO of 132 kV S/C Aizawl-Zemabawk Transmission Line alongwith associated Bays at Mleitrial (GIS) Sub-station 4.56 Norms D/C Single Conductor 0.346 Total Transmission Line 1.58 Total O&M Expenses 23.30

(Rs. in lakh)

Asset-35 Particulars 2018-19 (Pro-rata for 121 days) Sub-station Bays 132 kV (GIS) : Mleriat : Sihhmui Ckt-I 1 132 kV (GIS) : Mleriat : 132 kV Sihhmui Line Bay Ckt-II 1 132 kV : Mleriat : 132 kV Mleriat Line Bay Ckt-I 1 132 kV : Mleriat : 132 kV Mleriat Line Bay Ckt-II 1 Total 132 kV 4 Norms 132 kV 34.36 Total Sub-station Bays O&M Expenses 137.44 AC Lines 132 kV D/C Mleriat (New) Shihhmui (Mizoram) 6.122 Norms D/C Single Conductor 0.346 Total Transmission Line 2.12 Total O&M Expenses 46.26

(Rs. in lakh)

Asset-36 Particulars 2018-19 (Pro-rata for 65 days) Sub-station Bays 132 kV (GIS) : Mleriat : Bus Reactor-Mleriat-Mleriat (132 kV GIS) 1 Norms 132 kV 34.36 Total Sub-station Bays O&M Expenses 34.36 Total O&M Expenses 6.12

Interest on Working Capital (“IWC”)

48. The Petitioner has claim claimed IWC as per Regulation 28(1)(c) of the 2014 Tariff Regulations.

49. The trued-up IWC allowed in respect of the transmission assets are as follows:

(Rs. in lakh)

Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Asset-4 Particulars 2014-15 2015-16 2014-15 2015-16 A Working Capital for O&M Expenses (O&M expenses for one month) 123.56 127.66 10.24 10.58 B Working Capital for Maintenance Spares (15% of O&M expenses) 222.41 229.79 18.43 19.04 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 1113.83 1127.08 76.23 76.05 D Total of Working Capital (A+B+C) 1459.80 1484.52 104.89 105.67 E Rate of Interest on working capital(in %) 13.50 13.50 13.50 13.50 F Interest on Working Capital (D*E) 197.07 200.41 14.16 14.27

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 142.82 147.57 152.47 B Working Capital for Maintenance Spares (15% of O&M expenses) 257.08 265.63 274.44 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 1194.25 1180.28 1165.74 D Total of Working Capital (A+B+C) 1594.16 1593.47 1592.64 E Rate of Interest on working capital (in %) 13.50 13.50 13.50 F Interest on Working Capital (D*E) 215.21 215.12 215.01

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 25.65 26.50 27.38 28.29 29.23 B Working Capital for Maintenance Spares (15% of O&M expenses) 46.17 47.70 49.29 50.92 52.62 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 169.92 179.91 187.60 189.51 191.47 D Total of Working Capital (A+B+C) 241.74 254.11 264.27 268.72 273.32 E Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 13.50 F Interest on Working Capital (D*E) 32.64 34.31 35.68 36.28 36.90

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 15.80 16.33 16.86 17.43 B Working Capital for Maintenance Spares (15% of O&M expenses) 28.44 29.39 30.36 31.37 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 280.54 295.02 301.86 300.92 D Total of Working Capital (A+B+C) 324.78 340.73 349.08 349.72 E Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 F Interest on Working Capital (D*E) 29.23 46.00 47.13 47.21

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 16.65 17.20 17.77 18.37 B Working Capital for Maintenance Spares (15% of O&M expenses) 29.97 30.96 31.99 33.06 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 119.90 132.49 137.23 139.61 D Total of Working Capital (A+B+C) 166.53 180.66 186.99 191.03 E Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 F Interest on Working Capital (D*E) 14.99 24.39 25.24 25.79

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 6.23 6.44 6.65 6.87 B Working Capital for Maintenance Spares (15% of O&M expenses) 11.21 11.59 11.97 12.37 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 40.25 42.65 43.74 44.03 D Total of Working Capital (A+B+C) 57.69 60.67 62.36 63.27 E Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 F Interest on Working Capital (D*E) 4.53 8.19 8.42 8.54

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 19.89 20.55 21.23 21.94 22.67 B Working Capital for Maintenance Spares (15% of O&M expenses) 35.80 37.00 38.22 39.49 40.80 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 1400.24 1574.55 1757.70 1748.71 1708.83 D Total of Working Capital (A+B+C) 1455.93 1632.10 1817.15 1810.13 1772.30 E Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 13.50 F Interest on Working Capital (D*E) 5.38 220.33 245.32 244.37 239.26

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 18.23 18.83 19.45 20.10 B Working Capital for Maintenance Spares (15% of O&M expenses) 32.81 33.89 35.02 36.18 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 1189.13 1245.78 1262.28 1250.79 D Total of Working Capital (A+B+C) 1240.17 1298.50 1316.75 1307.08 E Rate of Interest on working capital (in %) 13.50 13.50 13.50 13.50 F Interest on Working Capital (D*E) 111.62 175.30 177.76 176.46

(Rs. in lakh)

Asset-26 Asset-27 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 2017-18 (Pro-rata for 291 days) 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 22.26 23.01 10.33 10.68 B Working Capital for Maintenance Spares (15% of O&M expenses) 40.07 41.42 18.59 19.22 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 613.73 624.70 299.78 309.30 D Total of Working Capital (A+B+C) 676.06 689.12 328.70 339.20 E Rate of Interest on working capital (in %) 12.60 12.60 12.60 12.60 F Interest on Working Capital (D*E) 68.38 86.83 33.02 42.74

(Rs. in lakh)

Asset-28 Asset-29 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 2017-18 (Pro-rata for 70 days) 2018-19 A Working Capital for O&M Expenses (O&M expenses for one month) 5.90 6.09 5.54 5.73 B Working Capital for Maintenance Spares (15% of O&M expenses) 10.61 10.97 9.98 10.31 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 58.53 68.59 31.36 31.69 D Total of Working Capital (A+B+C) 75.04 85.65 46.88 47.73 E Rate of Interest on working capital (in %) 12.60 12.60 12.60 12.60 F Interest on Working Capital (D*E) 3.50 10.79 1.13 6.01

(Rs. in lakh)

Asset-30 Asset-31 Asset-32 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 2018-19 (Pro-rata for 270 days) 2018-19 (Pro-rata for 291 days) A Working Capital for O&M Expenses (O&M expenses for one month) 5.54 5.73 19.92 2.86 B Working Capital for Maintenance Spares (15% of O&M expenses) 9.98 10.31 35.86 5.15 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 32.96 33.17 522.37 29.36 D Total of Working Capital (A+B+C) 48.48 49.21 578.16 37.37 E Rate of Interest on working capital (in %) 12.60 12.60 12.20 12.20 F Interest on Working Capital (D*E) 1.17 6.20 52.18 3.64

(Rs. in lakh)

Asset-33 Asset-34 Asset-35 Asset-36 Particulars 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 65 days) A Working Capital for O&M Expenses (O&M expenses for one month) 21.08 5.86 11.63 2.86 B Working Capital for Maintenance Spares (15% of O&M expenses) 37.94 10.54 20.93 5.15 C Working Capital for Receivables (Equivalent to two months of annual fixed cost/annual transmission charges) 2063.75 57.01 92.94 39.85 D Total of Working Capital (A+B+C) 2122.76 73.41 125.51 47.87 E Rate of Interest on working capital (in %) 12.20 12.20 12.20 12.20 F Interest on Working Capital (D*E) 85.85 2.97 5.08 1.04

Approved Annual Fixed Charges for 2014-19 Tariff Period

50. The trued-up Annual Fixed Charges (AFC) allowed in respect of the transmission assets for 2014-19 tariff period are as follows:

(Rs. in lakh)

Particulars Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Asset-4 2014-15 2015-16 2014-15 2015-16 Depreciation 1566.79 1615.11 100.58 101.77 Interest on Loan 1657.68 1570.69 108.06 99.88 Return on Equity 1778.72 1844.33 111.71 113.45 O&M Expenses 1482.71 1531.91 122.85 126.93 Interest on Working Capital 197.07 200.41 14.16 14.27 Total 6682.97 6762.45 457.36 456.30

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 Depreciation 1732.31 1738.46 1740.60 Interest on Loan 1528.50 1374.47 1217.69 Return on Equity 1975.59 1982.75 1991.52 O&M Expenses 1713.89 1770.85 1829.59 Interest on Working Capital 215.21 215.12 215.01 Total 7165.50 7081.65 6994.41

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 Depreciation 192.43 211.65 227.42 234.00 240.39 Interest on Loan 241.85 246.42 245.72 231.33 216.46 Return on Equity 244.79 269.03 288.24 295.98 304.28 O&M Expenses 307.82 318.03 328.57 339.47 350.79 Interest on Working Capital 32.64 34.31 35.68 36.28 36.90 Total 1019.53 1079.44 1125.63 1137.06 1148.82

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Depreciation 294.97 478.27 504.80 515.22 Interest on Loan 341.34 514.34 491.59 455.52 Return on Equity 330.25 535.58 565.28 578.43 O&M Expenses 126.39 195.92 202.37 209.15 Interest on Working Capital 29.23 46.00 47.13 47.21 Total 1122.18 1770.11 1811.17 1805.53

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Depreciation 96.93 168.72 180.84 188.07 Interest on Loan 119.41 194.86 188.91 179.26 Return on Equity 115.08 200.57 215.08 224.12 O&M Expenses 133.21 206.43 213.28 220.40 Interest on Working Capital 14.99 24.39 25.24 25.79 Total 479.62 794.97 823.35 837.64

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 Depreciation 27.96 52.64 55.60 56.92 Interest on Loan 33.23 58.88 56.39 52.36 Return on Equity 31.30 58.94 62.25 63.90 O&M Expenses 43.51 77.24 79.80 82.46 Interest on Working Capital 4.53 8.19 8.42 8.54 Total 140.53 255.89 262.46 264.18

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 Depreciation 65.74 2744.95 3169.98 3258.10 3269.65 Interest on Loan 79.11 3154.86 3317.64 3068.01 2790.20 Return on Equity 73.41 3080.47 3558.49 3658.55 3681.82 O&M Expenses 6.54 246.66 254.79 263.24 272.02 Interest on Working Capital 5.38 220.33 245.32 244.37 239.26 Total 230.18 9447.27 10546.22 10492.27 10252.95

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 Depreciation 1365.42 2203.78 2320.94 2376.87 Interest on Loan 1604.52 2401.63 2242.39 2041.23 Return on Equity 1529.16 2468.01 2599.17 2668.95 O&M Expenses 145.82 225.94 233.44 241.23 Interest on Working Capital 111.62 175.30 177.76 176.46 Total 4756.54 7474.66 7573.70 7504.74

(Rs. in lakh)

Asset-26 Asset-27 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 2017-18 (Pro-rata for 291 days) 2018-19 Depreciation 806.44 1048.85 397.68 529.66 Interest on Loan 943.43 1132.53 443.82 540.43 Return on Equity 923.32 1203.86 460.66 614.84 O&M Expenses 214.42 276.12 98.82 128.15 Interest on Working Capital 68.38 86.83 33.02 42.74 Total 2955.99 3748.19 1434.00 1855.82

(Rs. in lakh)

Asset-28 Asset-29 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 2017-18 (Pro-rata for 70 days) 2018-19 Depreciation 31.79 106.70 6.84 36.17 Interest on Loan 32.97 101.47 7.70 38.64 Return on Equity 35.46 119.42 7.66 40.61 O&M Expenses 26.17 73.13 12.75 68.72 Interest on Working Capital 3.50 10.79 1.13 6.01 Total 129.89 411.51 36.08 190.15

(Rs. in lakh)

Asset-30 Asset-31 Asset-32 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 2018-19 (Pro-rata for 270 days) 2018-19 (Pro-rata for 291 days) Depreciation 7.40 38.91 640.42 33.94 Interest on Loan 8.32 41.54 709.51 36.55 Return on Equity 8.29 43.68 739.54 38.91 O&M Expenses 12.75 68.72 176.84 27.39 Interest on Working Capital 1.17 6.20 52.18 3.64 Total 37.93 199.05 2318.49 140.43

(Rs. in lakh)

Asset-33 Asset-34 Asset-35 Asset-36 Particulars 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 65 days) Depreciation 1275.63 27.42 38.01 10.99 Interest on Loan 1206.54 28.98 46.02 12.09 Return on Equity 1453.02 30.73 49.49 12.34 O&M Expenses 83.84 23.30 46.26 6.12 Interest on Working Capital 85.85 2.97 5.08 1.04 Total 4104.88 113.40 184.86 42.58

DETERMINATION OF ANNUAL FIXED CHARGES FOR 2019-24 TARIFF PERIOD

51. The Petitioner has submitted the tariff forms combining all the transmission assets into a single asset, namely, Combined Asset.

52. The Petitioner has claimed the following transmission charges in respect of the Combined Asset for 2019-24 tariff period:

(Rs. in lakh)

Particulars 2019-20 2020-21 201-22 2022-23 2023-24 Depreciation 15762.23 16070.48 16191.19 16137.94 15930.19 Interest on Loan 13295.98 12246.73 11007.74 9603.12 8191.62 Return on Equity 16897.61 17235.13 17368.91 17368.91 17368.91 Interest on Working Capital 807.37 807.37 796.72 779.07 757.25 O&M Expenses 2667.98 2760.97 2857.15 2956.49 3058.92 Total 49431.17 49120.68 48221.71 46845.53 45306.89

53. The Petitioner has claimed the following IWC in respect of the Combined Asset for 2019-24 tariff period:

(Rs. in lakh)

Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 O&M expenses 222.33 230.08 238.10 246.37 254.91 Maintenance Spares 400.20 414.15 428.57 443.47 458.84 Receivables 6077.60 6055.97 5945.14 5775.48 5570.52 Total 6700.13 6700.20 6611.81 6465.32 6284.27 Rate of Interest 12.05 12.05 12.05 12.05 12.05 Interest on Working Capital 807.37 807.37 796.72 779.07 757.25

54. Accordingly, as per proviso (i) of Regulation 8(1) of the 2019 Tariff Regulations, tariff for the Combined Asset has been worked out for 2019-24 tariff period. The COD of the Asset-35 has been approved under proviso (ii) of Regulation 4(3) of the 2014 Tariff Regulations as the downstream assets under the scope of P&E Department, State of Mizoram have not been put into commercial operation and therefore the transmission charges have to be borne by P&E Department, State of Mizoram for the period of mismatch in COD of the transmission assets.

Effective Date of Commercial Operation (“E-COD”)

55. The Petitioner has claimed E-COD of the Combined Asset as 15.6.2016. Based on the trued-up admitted capital cost and actual COD of all the assets. However, ECOD of the Combined Asset (except Asset-35), has been worked out as follows:

Computation of E-COD Assets Actual COD Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Weight of the cost (in %) Number of Days from last COD Weighted Days Combined Asset-1 to 12 1.8.2012 33647.69 11.47 2369 271.68 Combined Asset-13 to 20 1.4.2013 5133.49 1.75 2126 37.20 Asset-21 1.8.2015 9763.39 3.33 1274 42.39 Asset-22 1.8.2015 3785.70 1.29 1274 16.44 Asset-23 1.9.2015 1078.98 0.37 1243 4.57 Asset-24 22.3.2015 62239.57 21.21 1406 298.26 Asset-25 1.8.2015 45052.54 15.36 1274 195.63 Asset-26 12.6.2017 20490.87 6.98 593 41.42 Asset-27 14.6.2017 10586.07 3.61 591 21.32 Asset-28 17.11.2017 2234.23 0.76 435 3.31 Asset-29 21.1.2018 691.61 0.24 370 0.87 Asset-30 21.1.2018 740.06 0.25 370 0.93 Asset-31 5.7.2018 17569.10 5.99 205 12.28 Asset-32 14.6.2018 872.03 0.30 226 0.67 Asset-33 1.12.2018 76682.25 26.14 56 14.64 Asset-34 1.12.2018 1628.26 0.55 56 0.31 Asset-36 26.1.2019 1201.27 0.41 0 0.00 Total 293397.11 100.00 961.93 E-COD (Latest COD - Total weighted Days) 8.6.2016

56. E-COD is used to determine the lapsed life of the project as a whole, which works out as two (2) years as on 1.4.2019 (i.e. the number of completed years as on 1.4.2019 from E-COD).

Weighted Average Life (“WAL”)

57. The life as defined in Regulation 33 of the 2019 Tariff Regulations has been considered for determination of WAL. The Combined Asset may have multiple elements such as land, building, transmission line, Sub-station and PLCC and each element may have different span of life. Therefore, the concept of WAL has been used as the useful life of the project as a whole.

58. WAL has been determined based on the admitted capital cost of individual elements as on 31.3.2019, irrespective of life as stipulated in the 2019 Tariff Regulations. The element-wise life as defined in the 2014 Tariff Regulations prevailing at the time of actual COD of individual assets has been ignored for this purpose. The life as defined in the 2019 Tariff Regulations has been considered for determination of WAL. Accordingly, WAL of the Combined Asset (except Asset-35) has been worked out as 33 years and the same is as follows:

Admitted Capital Cost as on 31.3.2019 Particulars Combined Asset Cost (Rs. in lakh) (1) Life in Years (2) Weighted Cost (3)=(1) x(2) (in lakh) (3) WAL of Asset (in years) (4)=(3)/(1) Building 9242.40 25 231059.90 Transmission Line 234981.91 35 8224366.73 Sub-Station Equipment 45336.22 25 1133405.44 PLCC 1247.79 15 18716.90 IT equipment 1627.21 6.67 10848.10 Total 292435.53 9618397.06 32.89 years, rounded off to 33 years

59. WAL as on 1.4.2019 as determined above is applicable prospectively (i.e. for 2019-24 tariff period and no retrospective adjustment of depreciation in previous tariff period is required to be done. As discussed, E-COD of the transmission assets was 8.6.2016 and the lapsed life of the project as a whole, works out as two (2) years as on 1.4.2019 (i.e. the number of completed years as on 1.4.2019 from E-COD). Accordingly, WAL has been used to determine the remaining useful life as on 31.3.2019 to be 31 years.

Capital Cost

60. Regulation 19 of the 2019 Tariff Regulations provides as follows:

“19 Capital Cost: (1) The Capital cost of the generating station or the transmission system, as the case may be, as determined by the Commission after prudence check in accordance with these regulations shall form the basis for determination of tariff for existing and new projects.

(2) The Capital Cost of a new project shall include the following:

(a) The expenditure incurred or projected to be incurred up to the date of commercial operation of the project;

(b) Interest during construction and financing charges, on the loans (i) being equal to 70% of the funds deployed, in the event of the actual equity in excess of 30% of the funds deployed, by treating the excess equity as normative loan, or (ii) being equal to the actual amount of loan in the event of the actual equity less than 30% of the funds deployed;

(c) Any gain or loss on account of foreign exchange risk variation pertaining to the loan amount availed during the construction period;

(d) Interest during construction and incidental expenditure during construction as computed in accordance with these regulations;

(e) Capitalised Initial Spares subject to the ceiling rates in accordance with these regulations;

(f) Expenditure on account of additional capitalization and de-capitalisation determined in accordance with these regulations;

(g) Adjustment of revenue due to sale of infirm power in excess of fuel cost prior to the date of commercial operation as specified under Regulation 7 of these regulations;

(h) Adjustment of revenue earned by the transmission licensee by using the Asset-before the date of commercial operation;

(i) Capital expenditure on account of ash disposal and utilization including handling and transportation facility;

(j) Capital expenditure incurred towards railway infrastructure and its augmentation for transportation of coal upto the receiving end of the generating station but does not include the transportation cost and any other appurtenant cost paid to the railway;

(k) Capital expenditure on account of biomass handling equipment and facilities, for co-firing;

(l) Capital expenditure on account of emission control system necessary to meet the revised emission standards and sewage treatment plant;

(m) Expenditure on account of fulfilment of any conditions for obtaining environment clearance for the project;

(n) Expenditure on account of change in law and force majeure events; and

(o) Capital cost incurred or projected to be incurred by a thermal generating station, on account of implementation of the norms under Perform, Achieve and Trade (PAT) scheme of Government of India shall be considered by the Commission subject to sharing of benefits accrued under the PAT scheme with the beneficiaries.

(3) The Capital cost of an existing project shall include the following:

(a) Capital cost admitted by the Commission prior to 1.4.2019 duly trued up by excluding liability, if any, as on 1.4.2019;

(b) Additional capitalization and de-capitalization for the respective year of tariff as determined in accordance with these regulations;

(c) Capital expenditure on account of ash disposal and utilization including handling and transportation facility;

(d) Capital expenditure on account of ash disposal and utilization including handling and transportation facility;

(e) Capital expenditure incurred towards railway infrastructure and its augmentation for transportation of coal up to the receiving end of generating station but does not include the transportation cost and any other appurtenant cost paid to the railway; and

(f) Capital cost incurred or projected to be incurred by a thermal generating station, on account of implementation of the norms under Perform, Achieve and Trade (PAT) scheme of Government of India shall be considered by the Commission subject to sharing of benefits accrued under the PAT scheme with the beneficiaries.”

(4) The capital cost in case of existing or new hydro generating station shall also include:

(a) cost of approved rehabilitation and resettlement (R&R) plan of the project in conformity with National R&R Policy and R&R package as approved; and

(b) cost of the developer's 10% contribution towards Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) project in the affected area.

(5) The following shall be excluded from the capital cost of the existing and new projects:

(a) The Asset-forming part of the project, but not in use, as declared in the tariff petition;

(b) De-capitalised Asset-after the date of commercial operation on account of replacement or removal on account of obsolescence or shifting from one project to another project:

Provided that in case replacement of transmission Asset-is recommended by Regional Power Committee, such Asset-shall be decapitalised only after its redeployment;

Provided further that unless shifting of an Asset-from one project to another is of permanent nature, there shall be no de-capitalization of the concerned asset.

(c) In case of hydro generating stations, any expenditure incurred or committed to be incurred by a project developer for getting the project site allotted by the State Government by following a transparent process;

(d) Proportionate cost of land of the existing project which is being used for generating power from generating station based on renewable energy; and

(e) Any grant received from the Central or State Government or any statutory body or authority for the execution of the project which does not carry any liability of repayment.”

61. The trued-up capital cost as on 31.3.2019 in respect of the Combined Asset (except Asset-35) has been considered as capital cost as on 31.3.2019. The trued-up capital cost as on 31.3.2019 for Asset-35 has been considered as capital cost as on 31.3.2019. The capital cost has been dealt in line with Regulation 19(3) of the 2019 Tariff Regulations. The element-wise capital cost (i.e. land, building, transmission line, sub-station and PLCC) as admitted by the Commission as on 31.3.2019 in respect of the transmission assets are clubbed together and the capital cost has been considered as capital cost for the Combined Asset (except Asset-35) and Asset-35 as on 31.3.2019 as follows:

(Rs. in lakh)

Particulars Combined Asset-1 to 12 Combined Asset-13 to 20 Asset-21 Asset-22 Asset-23 Asset-24 Free hold Land 109.18 533.19 0.00 0.00 0.00 0.00 Building & Other Civil Works 1712.82 180.07 62.66 530.18 0.00 525.29 Transmission Line 14308.48 269.81 6114.63 506.78 0.00 60816.97 Sub-Station Equipment 16666.94 3859.06 3233.17 2504.28 1041.00 884.51 PLCC 441.76 93.92 111.97 71.21 0.00 12.79 Leasehold Land 0.00 0.00 0.00 108.99 0.00 0.00 IT Equipment and Software 408.51 197.44 240.96 64.27 37.98 0.00 Total 33647.69 5133.49 9763.39 3785.70 1078.98 62239.57

(Rs. in lakh)

Particulars Asset-25 Asset-26 Asset-27 Asset-28 Asset-20 Asset-30 Free hold Land 0.00 78.24 57.82 0.00 0.00 0.00 Building & Other Civil Works 53.93 1038.36 822.16 0.00 0.00 0.00 Transmission Line 44376.32 16440.02 8232.67 1999.33 0.00 0.00 Sub-Station Equipment 577.27 2718.10 1264.66 183.62 662.95 727.12 PLCC 45.03 71.09 71.49 31.02 0.00 0.00 Leasehold Land 0.00 0.00 0.00 0.00 0.00 0.00 IT Equipment and Software 0.00 145.06 137.27 20.26 28.67 12.94 Total 45052.54 20490.87 10586.07 2234.23 691.61 740.06

(Rs. in lakh)

Particulars Asset-31 Asset-32 Asset-33 Asset-34 Asset-36 Total Capital Cost as on 31.3.2019 Free hold Land 74.16 0.00 0.00 0.00 0.00 852.59 Building & Other Civil Works 1222.38 69.21 3025.35 0.00 0.00 9242.40 Transmission Line 13289.92 0.00 67464.10 1162.87 0.00 234981.91 Sub-Station Equipment 2710.60 791.59 5881.68 433.79 1195.88 45336.22 PLCC 86.84 0.00 197.59 13.09 0.00 1247.79 Leasehold Land 0.00 0.00 0.00 0.00 0.00 108.99 IT Equipment and Software 185.20 11.23 113.53 18.51 5.39 1627.21 Total 17569.10 872.03 76682.25 1628.26 1201.27 293397.11

(Rs. in lakh)

Particulars Asset-35 Free hold Land 342.97 Building & Other Civil Works 16.99 Transmission Line 1375.59 Sub-Station Equipment 749.04 PLCC 11.23 Leasehold Land 0.00 IT Equipment and Software 49.64 Total 2545.45

62. The trued-up capital cost of Rs. 293397.11 lakh in respect of the Combined Asset (except Asset-35) and Rs. 2545.45 lakh in respect of Asset-35 has been considered as admitted capital cost as on 31.3.2019 for working out tariff for 2019-24 tariff period.

Initial Spares

63. As stated earlier in this order, Initial Spares are allowed for 2014-19 period on the basis of the cost of individual assets. The assets covered in the transmission project (except Asset-35) are combined during 2019-24 tariff period and, hence, Initial Spares are allowed on the basis of the overall project cost as per the APTEL's judgement dated 14.9.2019 in Appeal No. 74 of 2017.

64. Accordingly, Initial Spares allowed for 2019-24 tariff period are as follows:

Sub-stations:

Assets Capital Cost/P&M Cost as on cut-off date (Rs. in lakh) Initial Spares Claimed (Rs. in lakh) Norms as per the 2009/2014 Tariff Regulations (in %) Initial Spares allowable as per the 2009/2014 Tariff Regulations Initial Spares Allowed during the 2009-14/2014-19 period (Rs. in lakh) Initial Spares allowed for Combined Asset (Rs. in lakh) Asset-1 1221.75 46.39 2.50 30.14 30.14 Asset-2 1003.49 36.28 2.50 24.80 24.80 Asset-3 1893.48 47.34 2.50 47.34 47.34 Asset-4 757.23 19.76 2.50 18.91 18.91 Asset-5 555.91 8.93 2.50 14.03 8.93 Asset-6 3642.17 79.8 2.50 91.34 79.80 Asset-7 2826.69 70.67 2.50 70.67 70.67 Asset-8 3420.96 0.00 2.50 87.72 0.00 Asset-9 205.26 4.53 2.50 5.15 4.53 Asset-10 2250 50.00 2.50 56.41 50.00 Asset-11 287.46 7.19 2.50 7.19 7.19 Asset-12 1057.61 23.17 2.50 26.52 23.17 Asset-13 1748.84 85.18 2.50 42.66 42.66 Asset-14 542.02 20.46 2.50 13.37 13.37 Asset-15 342.26 8.56 2.50 8.56 8.56 Asset-16 241.81 13.55 2.50 5.85 5.85 Asset-17 169.55 26.86 2.50 3.66 3.66 Asset-18 374.07 9.35 2.50 9.35 9.35 Asset-19 463.43 11.59 2.50 11.59 11.59 Asset-20 693.37 17.33 2.50 17.33 17.33 Asset-21 3032.72 42.65 4.00 124.59 42.65 Asset-22 2450.51 197.26 4.00 93.89 93.89 Asset-23 838.56 0.00 4.00 34.94 0.00 Asset-24 800.42 17.03 4.00 32.64 17.03 Asset-25 525.74 0.00 6.00 33.56 0.00 Asset-26 2251.75 67.21 4.00 91.02 67.21 Asset-27 1269.09 38.25 4.00 51.29 38.25 Asset-28 156.59 0.00 4.00 6.52 0.00 Asset-29 530.27 8.81 4.00 21.73 8.81 Asset-30 565.69 16.62 4.00 22.88 16.62 Asset-31 2223.96 57.44 4.00 90.27 57.44 Asset-32 580.20 2.25 4.00 24.08 2.25 Asset-33 4849.01 133.33 4.00 196.49 133.33 Asset-34 366.16 0.00 4.00 15.26 0.00 Asset-36 900.04 8.10 4.00 37.16 8.10 Combined Asset 1175.89 1468.88 963.41 212.48

*Additional Initial Spares of Rs. 212.48 lakh (Rs. 1175.89-Rs. 963.41) lakh are allowed for substation.

Transmission Line:

Assets Capital Cost/P&M Cost as on cut-off date (Rs. in lakh) Initial Spares Claimed (Rs. in lakh) Norms as per 2009/2014 Tariff Regulations (in %) Initial Spares allowable as per 2009/2014 Tariff Regulations (Rs. in lakh) Initial Spares Allowed during 2009-14/2014-19 period (Rs. in lakh) Initial Spares allowed for Combined Asset (Rs. in lakh) Asset-4 1223.3 9.08 0.75 9.18 9.08 Asset-5 1367.24 10.98 0.75 10.25 10.25 Asset-6 164.01 1.23 0.75 1.23 1.23 Asset-9 1919.06 13.74 0.75 14.40 13.74 Asset-11 9580.47 74.25 0.75 71.84 71.84 Asset-13 18.15 0.37 0.75 0.13 0.13 Asset-16 192.38 0.42 0.75 1.45 0.42 Asset-17 36.35 0.27 0.75 0.27 0.27 Asset-21 4966.12 84.78 1.00 49.31 49.31 Asset-22 386.69 0.00 1.00 3.91 0.00 Asset-24 52388.94 277.86 1.00 526.37 277.86 Asset-25 36639.23 199.49 1.00 368.08 199.49 Asset-26 11526.73 101.3 1.00 115.41 101.30 Asset-27 6606.14 49.81 1.00 66.23 49.81 Asset-28 1568.82 12.00 1.00 15.73 12.00 Asset-31 9486.74 53.65 1.00 95.28 53.65 Asset-33 50519.19 275.03 1.00 507.52 275.03 Asset-34 829.80 8.56 1.00 8.30 8.30 Combined Asset 1172.82 1864.87 1133.70 39.12

*Additional Initial Spares of Rs. 39.12 lakh (Rs. 1172.82-Rs. 1133.70) lakh are allowed for Transmission Line.

65. Accordingly, capital cost allowed for the Combined Asset and Asset-35 as on 1.4.2019 is as follows:

(Rs. in lakh)

Assets Capital Cost as on 31.3.2019 Initial Spares allowed as per APTEL's Judgement Capital Cost as on 1.4.2019 Combined Asset-1 to 36 (except Asset-35) 293397.11 251.60 293648.71 Asset-35 2545.45 0.00 2545.45

Additional Capital Expenditure (“ACE”)

66. Regulation 24 and Regulation 25 of the 2019 Tariff Regulations provide as follows:

“24. Additional Capitalization within the original scope and up to the cut-off date:

(1) The Additional Capital Expenditure in respect of a new project or an existing project incurred or projected to be incurred, on the following counts within the original scope of work, after the date of commercial operation and up to the cut-off date may be admitted by the Commission, subject to prudence check:

(a) Undischarged liabilities recognized to be payable at a future date;

(b) Works deferred for execution;

(c) Procurement of initial capital spares within the original scope of work, in accordance with the provisions of Regulation 23 of these regulations;

(d) Liabilities to meet award of arbitration or for compliance of the directions or order of any statutory authority or order or decree of any court of law;

(e) Change in law or compliance of any existing law; and

(f) Force Majeure events:

Provided that in case of any replacement of the assets, the additional capitalization shall be worked out after adjusting the gross fixed assets and cumulative depreciation of the assets replaced on account of de-capitalization.

(2) The generating company or the transmission licensee, as the case may be shall submit the details of works asset wise/work wise included in the original scope of work along with estimates of expenditure, liabilities recognized to be payable at a future date and the works deferred for execution.”

25. Additional Capitalisation within the original scope and after the cut-off date:

(1) The ACE incurred or projected to be incurred in respect of an existing project or a new project on the following counts within the original scope of work and after thecutoff date may be admitted by the Commission, subject to prudence check:

a) Liabilities to meet award of arbitration or for compliance of the directions or order of any statutory authority, or order or decree of any court of law;

b) Change in law or compliance of any existing law;

c) Deferred works relating to ash pond or ash handling system in the original scope of work;

d) Liability for works executed prior to the cut-off date;

e) Force Majeure events;

f) Liability for works admitted by the Commission after the cut-off date to the extent of discharge of such liabilities by actual payments; and

g) Raising of ash dyke as a part of ash disposal system.”

(2) In case of replacement of assets deployed under the original scope of the existing project after cut-off date, the additional capitalization may be admitted by the Commission, after making necessary adjustments in the gross fixed assets and the cumulative depreciation, subject to prudence check on the following grounds:

(a) The useful life of the assets is not commensurate with the useful life of the project and such assets have been fully depreciated in accordance with the provisions of these regulations;

(b) The replacement of the asset or equipment is necessary on account of change in law or Force Majeure conditions;

(c) The replacement of such asset or equipment is necessary on account of obsolescence of technology; and

(d) The replacement of such asset or equipment has otherwise been allowed by the Commission.”

67. The Petitioner has claimed projected ACE for 2019-24 period on account of balance and retention payments due to undischarged liability projected for works executed within the cut-off date, work deferred for execution and undischarged liabilities recognized to be payable at a future date. The details of the projected ACE in respect of the Combined Asset are as follows:

(Rs. in lakh)

Assets ACE (as per Auditor's Certificate) 2019-20 2020-21 Asset-1 69.91 0.00 Asset-2 33.95 0.00 Asset-3 80.32 0.00 Asset-4 123.93 0.00 Asset-5 67.59 0.00 Asset-6 189.58 5.94 Asset-7 51.13 0.00 Asset-8 71.72 0.00 Asset-9 24.18 79.40 Asset-10 30.75 0.00 Asset-11 151.48 0.00 Asset-12 6.52 0.00 Asset-13 8.35 0.00 Asset-14 33.93 0.00 Asset-15 2.08 0.00 Asset-16 0.00 3.64 Asset-17 0.00 2.73 Asset-18 4.35 0.00 Asset-19 0.00 0.00 Asset-20 32.90 0.00 Asset-21 256.54 0.00 Asset-22 290.12 0.00 Asset-23 63.70 0.00 Asset-24 328.04 2578.00 Asset-25 957.32 0.00 Asset-26 450.52 0.00 Asset-27 529.07 231.58 Asset-28 52.06 9.12 Asset-29 13.35 0.00 Asset-30 16.53 0.00 Asset-31 320.06 327.73 Asset-32 9.60 7.64 Asset-33 2070.41 1376.17 Asset-34 127.35 42.40 Asset-35 156.83 65.76 Asset-36 81.39 18.40 Total 6705.56 4748.51

68. We have considered the submissions of the Petitioner. ACE claimed is allowed under Regulation 24(1)(a), Regulation 24(1)(b) and Regulation 25(1)(d) of the 2019 Tariff Regulations. ACE allowed is as follows:

(Rs. in lakh)

Assets Regulations ACE (as per Auditor's Certificate) 2019-20 2020-21 Combined Asset-1 to 36 (except Asset-35) Regulation 24(1)(a), 24(1)(b) and 25(1)(d) of TR, 2019 6548.73 4682.75 Discharge of IDC 513.40 0.00 Total 7062.13 4682.75 Regulation 24(1)(a) and 24(1)(b) of TR, 2019 156.83 65.76 Asset-35 Discharge of IDC 12.82 0.00 Total 169.65 65.76

Capital Cost considered for 2019-24 tariff period

69. Accordingly, the capital cost in respect of the Combined Asset (except Asset-35) considered for 2019-24 tariff period subject to truing-up is as follows:

(Rs. in lakh)

Assets Capital Cost as on 1.4.2019 Admitted ACE Capital Cost as on 31.3.2024 2019-20 2020-21 Combined Asset-1 to 36 (except Asset-35) 293648.71 7062.13 4682.75 305393.59 Asset-35 2545.45 169.65 65.76 2780.86

Debt-Equity Ratio

70. Regulations 18 of the 2019 Tariff Regulations provides as follows:

“18. Debt-Equity Ratio: (1) For new projects, the debt-equity ratio of 70 : 30 as on date of commercial operation shall be considered. If the equity actually deployed is more than 30% of the capital cost, equity in excess of 30% shall be treated as normative loan:

Provided that:

i. where equity actually deployed is less than 30% of the capital cost, actual equity shall be considered for determination of tariff:

ii. the equity invested in foreign currency shall be designated in Indian rupees on the date of each investment:

iii. any grant obtained for the execution of the project shall not be considered as a part of capital structure for the purpose of debt : equity ratio.

Explanation-The premium, if any, raised by the generating company or the transmission licensee, as the case may be, while issuing share capital and investment of internal resources created out of its free reserve, for the funding of the project, shall be reckoned as paid up capital for the purpose of computing return on equity, only if such premium amount and internal resources are actually utilised for meeting the capital expenditure of the generating station or the transmission system.

(2) The generating company or the transmission licensee, as the case may be, shall submit the resolution of the Board of the company or approval of the competent authority in other cases regarding infusion of funds from internal resources in support of the utilization made or proposed to be made to meet the capital expenditure of the generating station or the transmission system including communication system, as the case may be.

(3) In case of the generating station and the transmission system including communication system declared under commercial operation prior to 1.4.2019, debt : equity ratio allowed by the Commission for determination of tariff for the period ending 31.3.2019 shall be considered:

Provided that in case of a generating station or a transmission system including communication system which has completed its useful life as on or after 1.4.2019, if the equity actually deployed as on 1.4.2019 is more than 30% of the capital cost, equity in excess of 30%shall not be taken into account for tariff computation;

Provided further that in case of projects owned by Damodar Valley Corporation, the debt : equity ratio shall be governed as per sub-clause (ii) of clause (2) of Regulation 72 of these regulations.

(4) In case of the generating station and the transmission system including communication system declared under commercial operation prior to 1.4.2019, but where debt : equity ratio has not been determined by the Commission for determination of tariff for the period ending 31.3.2019, the Commission shall approve the debt : equity ratio in accordance with clause (1) of this Regulation.

(5) Any expenditure incurred or projected to be incurred on or after 1.4.2019 as may be admitted by the Commission as additional capital expenditure for determination of tariff, and renovation and modernisation expenditure for life extension shall be serviced in the manner specified in clause (1) of this Regulation.”

(6) Any expenditure incurred for the emission control system during the tariff period as may be admitted by the Commission as additional capital expenditure for determination of supplementary tariff, shall be serviced in the manner specified in clause (1) of this Regulation.”

71. The details of debt-equity ratio considered for the purpose of computation of tariff for 2019-24 tariff period is as follows:

Combined Asset-1 to 36 (except Asset-35) Capital Cost as on 1.4.2019 (Rs. in lakh) (in %) Total Capital Cost as on 31.3.2024 (Rs. in lakh) (in %) Debt 205554.09 70.00 213775.51 70.00 Equity 88094.61 30.00 91618.08 30.00 Total 293648.71 100.00 305393.59 100.00 Asset-35 Debt 1781.82 70.00 1946.60 70.00 Equity 763.64 30.00 834.26 30.00 Total 2545.45 100.00 2780.86 100.00

Depreciation

72. Regulation 33 of the 2019 Tariff Regulations provide as follows:

“33. Depreciation: (1) Depreciation shall be computed from the date of commercial operation of a generating station or unit thereof or a transmission system or element thereof including communication system. In case of the tariff of all the units of a generating station or all elements of a transmission system including communication system for which a single tariff needs to be determined, the depreciation shall be computed from the effective date of commercial operation of the generating station or the transmission system taking into consideration the depreciation of individual units:

Provided that effective date of commercial operation shall be worked out by considering the actual date of commercial operation and installed capacity of all the units of the generating station or capital cost of all elements of the transmission system, for which single tariff needs to be determined.

(2) The value base for the purpose of depreciation shall be the capital cost of the Asset-admitted by the Commission. In case of multiple units of a generating station or multiple elements of a transmission system, weighted average life for the generating station of the transmission system shall be applied. Depreciation shall be chargeable from the first year of commercial operation. In case of commercial operation of the Asset-for part of the year, depreciation shall be charged on pro rata basis.”

(3) The salvage value of the asset shall be considered as 10% and depreciation shall be allowed up to maximum of 90% of the capital cost of theasset:

Provided that the salvage value for IT equipment and software shall be considered as NIL and 100% value of the assets shall be considered depreciable;

Provided further that in case of hydro generating stations, the salvage value shall be as provided in the agreement, if any, signed by the developers with the State Government for development of the generatingstation

Provided also that the capital cost of the assets of the hydro generating station for the purpose of computation of depreciated value shall correspond to the percentage of sale of electricity under long-term power purchase agreement at regulated tariff:

Provided also that any depreciation disallowed on account oflower availability of the generating station or unit or transmission system as the case may be, shall not be allowed to be recovered at a later stage during the useful life or the extended life.

(4) Land other than the land held under lease and the land for reservoir in case of hydro generating station shall not be a depreciable asset and its cost shall beexcluded from the capital cost while computing depreciable value of theasset.

(5) Depreciation shall be calculated annually based on Straight Line Method and at rates specified in Appendix-I to these regulations for the Asset-of the generating station and transmission system:

Provided that the remaining depreciable value as on 31st March of the year closing after a period of 12 years from the effective date of commercial operation of the station shall be spread over the balance useful life of the asset.

(6) In case of the existing projects, the balance depreciable value as on 1.4.2019 shall be worked out by deducting the cumulative depreciation as admitted by the Commission up to 31.3.2019 from the gross depreciable value of the asset.

(7) The generating company or the transmission licensee, as the case may be, shall submit the details of proposed capital expenditure five years before the completion of useful life of the project along with justification and proposed life extension. The Commission based on prudence check of such submissions shall approve the depreciation on capital expenditure.

(8) In case of de-capitalization of asset in respect of generating station or unit thereof or transmission system or element thereof, the cumulative depreciation shall be adjusted by taking into account the depreciation recovered in tariff by the decapitalizedasset during its useful services.

(9) Where the emission control system is implemented within the original scope of the generating station and the date of commercial operation of the generating station or unit thereof and the date of operation of the emission control system are the same, depreciation of the generating station or unit thereof including the emission control system shall be computed in accordance with Clauses (1) to (8) of this Regulation.

(10) Depreciation of the emission control system of an existing or a new generating station or unit thereof where the date of operation of the emission control system is subsequent to the date of commercial operation of the generating station or unit thereof, shall be computed annually from the date of operation of such emission control system based on straight line method, with salvage value of 10%, over a period of -

a) twenty five years, in case the generating station or unit thereof is in operation for fifteen years or less as on the date of operation of the emission control system; or

b) balance useful life of the generating station or unit thereof plus fifteen years, in case the generating station or unit thereof is in operation for more than fifteen years as on the date of operation of the emission control system; or

c) ten years or a period mutually agreed by the generating company and the beneficiaries, whichever is higher, in case the generating station or unit thereof has completed its useful life.”

73. We have considered the submissions of the Petitioner. WAROD at Annexure-II has been worked out for the Combined Asset and Asset-35 taking into account the depreciation rates specified in the 2019 Tariff Regulations. Depreciation has been worked out considering the admitted capital expenditure as on 31.3.2019 and accumulated depreciation up to 31.3.2019. Depreciation allowed for the Combined Asset and Asset-35 is as follows:

(Rs. in lakh)

Combined Asset-1 to 36 (except Asset-35) Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Opening Gross Block 293648.71 300710.84 305393.59 305393.59 305393.59 B Addition during the year 2019-24 due to projected Additional Capitalisation 7062.13 4682.75 0.00 0.00 0.00 C Closing Gross Block (A+B) 300710.84 305393.59 305393.59 305393.59 305393.59 D Average Gross Block (A+C)/2 297179.77 303052.22 305393.59 305393.59 305393.59 E Weighted average rate of Depreciation (WAROD) (in %) 5.26 5.26 5.26 5.26 5.26 F Lapsed useful life at the beginning of the year (Year) 2.00 3.00 4.00 5.00 6.00 G Balance useful life at the beginningof the year (Year) 31.00 30.00 29.00 28.00 27.00 H Depreciable value (D*90%) 266859.42 272077.12 274114.64 274114.64 274114.64 I Combined Depreciation during the year (D*E) 15632.51 15934.33 16053.13 16053.13 16053.13 J Cumulative Depreciation at the end of the year 56444.38 72378.72 88431.85 104484.98 120538.10 K Remaining Aggregate Depreciable Value at the end of the year 210415.03 199698.40 185682.79 169629.66 153576.53

(Rs. in lakh)

Asset-35 Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Opening Gross Block 2545.45 2715.10 2780.86 2780.86 2780.86 B Addition during the year 2019-24 due to projected Additional Capitalisation 169.65 65.76 0.00 0.00 0.00 C Closing Gross Block (A+B) 2715.10 2780.86 2780.86 2780.86 2780.86 D Average Gross Block (A+C)/2 2630.28 2747.98 2780.86 2780.86 2780.86 E Weighted average rate of Depreciation (WAROD) (in %) 4.77 4.80 4.81 4.81 4.81 F Lapsed useful life at the beginning of the year (Year) 0.00 1.00 2.00 3.00 4.00 G Balance useful life at the beginningof the year (Year) 31.00 30.00 29.00 28.00 27.00 H Depreciable value (D*90%) 2063.55 2169.70 2199.49 2199.49 2199.49 I Combined Depreciation during the year (D*E) 125.40 131.82 133.75 133.75 133.75 J Cumulative Depreciation at the end of the year 163.41 295.23 428.97 562.72 696.47 K Remaining Aggregate Depreciable Value at the end of the year 1900.15 1874.48 1770.52 1636.77 1503.02

Interest on Loan (“IoL”)

74. Regulation 32 of the 2019 Tariff Regulations provides as follows:

“32. Interest on loan capital: (1) The loans arrived at in the manner indicated in Regulation 18 of these regulations shall be considered as gross normative loan for calculation of interest on loan.

(2) The normative loan outstanding as on 1.4.2019 shall be worked out by deducting the cumulative repayment as admitted by the Commission up to 31.3.2019 from the gross normative loan.

(3) The repayment for each of the year of the tariff period 2019-24 shall be deemed to be equal to the depreciation allowed for the corresponding year/period. In case of de-capitalization of asset, the repayment shall be adjusted by taking into account cumulative repayment on a pro rata basis and the adjustment should not exceed cumulative depreciation recovered upto the date of de-capitalisation of such asset.

(4) Notwithstanding any moratorium period availed by the generating company or the transmission licensee, as the case may be, the repayment of loan shall be considered from the first year of commercial operation of the project and shall be equal to the depreciation allowed for the year or part of the year.

(5) The rate of interest shall be the weighted average rate of interest calculated on the basis of the actual loan portfolio after providing appropriate accounting adjustment for interest capitalized:

Provided that if there is no actual loan for a particular year but normative loan is still outstanding, the last available weighted average rate of interest shall be considered;

Provided further that if the generating station or the transmission system, as the case may be, does not have actual loan, then the weighted average rate of interest of the generating company or the transmission licensee as a whole shall be considered.

(5a) The rate of interest on loan for installation of emission control system shall be the weighted average rate of interest of actual loan portfolio of the emission control system or in the absence of actual loan portfolio, the weighted average rate of interest of the generating company as a whole shall be considered.

(6) The interest on loan shall be calculated on the normative average loan of the year by applying the weighted average rate of interest.

(7) The changes to the terms and conditions of the loans shall be reflected from the date of such re-financing”.

75. The weighted average rate of interest of IoL has been considered on the basis of the rates prevailing as on 1.4.2019. The Petitioner has prayed that the change in interest rate due to floating rate of interest applicable, if any, during 2019-24 tariff period will be adjusted. Accordingly, the floating rate of interest, if any, shall be considered at the time of true up. In view of the above, IoL has been worked out in accordance with Regulation 32 of the 2019 Tariff Regulations. IoL allowed for the Combined Asset and Asset-35 for the 2019-24 tariff period is follows:

(Rs. in lakh)

Combined Asset-1 to 36 (except Asset-35) Particular 2019-20 2020-21 2021-22 2022-23 2023-24 A Gross Normative Loan 205554.09 210497.59 213775.51 213775.51 213775.51 B Cumulative Repayments upto Previous Year 40811.87 56444.38 72378.72 88431.85 104484.98 C Net Loan-Opening (A-B) 164742.22 154053.20 141396.80 125343.67 109290.54 D Addition due to ACE 4943.49 3277.93 0.00 0.00 0.00 E Repayment during the year 15632.51 15934.33 16053.13 16053.13 16053.13 F Net Loan-Closing (C+D-E) 154053.20 141396.80 125343.67 109290.54 93237.41 G Average Loan (C+F)/2 159397.71 147725.00 133370.23 117317.10 101263.97 H Weighted Average Rate of Interest on Loan (in %) 8.28 8.22 8.19 8.12 8.01 I Interest on Loan (G*H) 13193.35 12148.90 10919.69 9524.86 8112.86

(Rs. in lakh)

Asset-35 Particular 2019-20 2020-21 2021-22 2022-23 2023-24 A Gross Normative Loan 1781.82 1900.57 1946.60 1946.60 1946.60 B Cumulative Repayments upto Previous Year 38.01 163.41 295.23 428.97 562.72 C Net Loan-Opening (A-B) 1743.81 1737.16 1651.38 1517.63 1383.88 D Addition due to ACE 118.75 46.03 0.00 0.00 0.00 E Repayment during the year 125.40 131.82 133.75 133.75 133.75 F Net Loan-Closing (C+D-E) 1737.16 1651.38 1517.63 1383.88 1250.13 G Average Loan (C+F)/2 1740.49 1694.27 1584.50 1450.75 1317.01 H Weighted Average Rate of Interest on Loan (in %) 8.28 8.22 8.19 8.12 8.01 I Interest on Loan (G*H) 144.06 139.34 129.73 117.79 105.51

Return on Equity(“RoE”)

76. Regulation 30 and Regulation 31 of the 2019 Tariff Regulations provide as follows:

“30. Return on Equity: (1) Return on equity shall be computed in rupee terms, on the equity base determined in accordance with Regulation 18 of these regulations.

(2) Return on equity shall be computed at the base rate of 15.50% for thermal generating station, transmission system including communication system and runof-river hydro generating station, and at the base rate of 16.50% for the storage type hydro generating stations including pumped storage hydro generating stations and run-of-river generating station with pondage:

Provided that return on equity in respect of Additional Capitalization after cutoff date beyond the original scope excluding Additional Capitalization on account of emission control system, shall be computed at the weighted average rate of interest on actual loan portfolio of the generating station or the transmission system or in the absence of actual loan portfolio of the generating station or the transmission system, the weighted average rate of interest of the generating company or the transmission licensee, as the case may be, as a whole shall be considered, subject to celling of 14%;

Provided further that:

i. In case of a new project, the rate of return on equity shall be reduced by 1.00% for such period as may be decided by the Commission, if the generating station or transmission system is found to be declared under commercial operation without commissioning of any of the Restricted Governor Mode Operation (RGMO) or Free Governor Mode Operation (FGMO), data telemetry, communication system up to load dispatch centre or protection system based on the report submitted by the respective RLDC;

ii. in case of existing generating station, as and when any of the requirements under (i) above of this Regulation are found lacking based on the report submitted by the concerned RLDC, rate of return on equity shall be reduced by 1.00% for the period for which the deficiency continues;

iii. in case of a thermal generating station, with effect from 1.4.2020:

a) rate of return on equity shall be reduced by 0.25% in case of failure to achieve the ramp rate of 1% per minute;

b) an additional rate of return on equity of 0.25% shall be allowed for every incremental ramp rate of 1% per minute achieved over and above the ramp rate of 1% per minute, subject to ceiling of additional rate of return on equity of 1.00%:

Provided that the detailed guidelines in this regard shall be issued by National Load Dispatch Centre by 30.6.2019.

(3) The return on equity in respect of additional capitalization on account of emission control system shall be computed at the base rate of one year marginal cost of lending rate (MCLR) of the State Bank of India as on 1st April of the year in which the date of operation (ODe) occurs plus 350 basis point, subject to ceiling of 14%;

31. Tax on Return on Equity:(1) The base rate of return on equity as allowed by the Commission under Regulation 30 of these regulations shall be grossed up with the effective tax rate of the respective financial year. For this purpose, the effective tax rate shall be considered on the basis of actual tax paid in respect of the financial year in line with the provisions of the relevant Finance Acts by the concerned generating company or the transmission licensee, as the case may be. The actual tax paid on income from other businesses including deferred tax liability (i.e. income from business other than business of generation or transmission, as the case may be) shall be excluded for the calculation of effective tax rate.

(2) Rate of return on equity shall be rounded off to three decimal places and shall be computed as per the formula given below:

Rate of pre-tax return on equity = Base rate/(1-t)

Where “t” is the effective tax rate in accordance with clause (1) of this Regulation and shall be calculated at the beginning of every financial year based on the estimated profit and tax to be paid estimated in line with the provisions of the relevant Finance Act applicable for that financial year to the company on pro-rata basis by excluding the income of non-generation or non-transmission business, as the case may be, and the corresponding tax thereon. In case of generating company or transmission licensee paying Minimum Alternate Tax (MAT), “t” shall be considered as MAT rate including surcharge and cess.

Illustration-

(i) In case of a generating company or a transmission licensee paying Minimum Alternate Tax (MAT) @ 21.55% including surcharge and cess:

Rate of return on equity = 15.50/(1-0.2155) = 19.758%

(ii) In case of a generating company or a transmission licensee paying normal corporate tax including surcharge and cess:

(a) Estimated Gross Income from generation or transmission business for FY 2019-20 is Rs. 1,000 crore;

(b) Estimated Advance Tax for the year on above is Rs. 240 crore;

(c) Effective Tax Rate for the year 2019-20 = Rs. 240 Crore/Rs. 1000 Crore = 24%;

(d) Rate of return on equity = 15.50/(1-0.24) = 20.395%.

(3) The generating company or the transmission licensee, as the case may be, shall true up the grossed up rate of return on equity at the end of every financial year based on actual tax paid together with any additional tax demand including interest thereon, duly adjusted for any refund of tax including interest received from the income tax authorities pertaining to the tariff period 2019-24 on actual gross income of any financial year. However, penalty, if any, arising on account of delay in deposit or short deposit of tax amount shall not be claimed by the generating company or the transmission licensee, as the case may be. Any under-recovery or over-recovery of grossed up rate on return on equity after truing up, shall be recovered or refunded to beneficiaries or the long term customers, as the case may be, on year to year basis.”

77. The Petitioner has submitted that MAT rate is applicable to it. We have considered the submissions of the Petitioner. MAT rate applicable in 2019-20 has been considered for the purpose of RoE, which shall be trued-up with actual tax rate in accordance with Regulation 31(3) of the 2019 Tariff Regulations. RoE allowed under Regulation 30 of the 2019 Tariff Regulations is as follows:

(Rs. in lakh)

Combined Asset-1 to 36 (except Asset-35) Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Opening Equity 88094.61 90213.25 91618.08 91618.08 91618.08 B Addition due to ACE 2118.64 1404.83 0.00 0.00 0.00 C Closing Equity (A+B) 90213.25 91618.08 91618.08 91618.08 91618.08 D Average Equity (A+C)/2 89153.93 90915.67 91618.08 91618.08 91618.08 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 17.472 17.472 17.472 17.472 17.472 G Rate of Return on Equity (Pretax) 18.782 18.782 18.782 18.782 18.782 H Return on Equity (Pre-tax) (D*G) 16744.89 17075.78 17207.71 17207.71 17207.71

(Rs. in lakh)

Asset-35 Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Opening Equity 763.64 814.53 834.26 834.26 834.26 B Addition due to ACE 50.89 19.73 0.00 0.00 0.00 C Closing Equity (A+B) 814.53 834.26 834.26 834.26 834.26 D Average Equity (A+C)/2 789.08 824.39 834.26 834.26 834.26 E Return on Equity (Base Rate) (in %) 15.500 15.500 15.500 15.500 15.500 F Tax Rate applicable (in %) 17.472 17.472 17.472 17.472 17.472 G Rate of Return on Equity (Pretax) 18.782 18.782 18.782 18.782 18.782 H Return on Equity (Pre-tax) (D*G) 148.21 154.84 156.69 156.69 156.69

Operation & Maintenance Expenses (“O&M Expenses”)

78. Regulation 35(3)(a) and Regulation 35(4) of the 2019 Tariff Regulations specifies the norms for O&M Expenses as follows:

“35 (3) Transmission system: (a) The following normative operation and maintenance expenses shall be admissible for the combined transmission system:

Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 Norms for sub-station Bays (Rs. lakh per bay) 765 kV 45.01 46.60 48.23 49.93 51.68 400 kV 32.15 33.28 34.45 35.66 36.91 220 kV 22.51 23.30 24.12 24.96 25.84 132 kV and below 16.08 16.64 17.23 17.83 18.46 Norms for Transformers (Rs. lakh per MVA) 765 kV 0.491 0.508 0.526 0.545 0.564 400 kV 0.358 0.371 0.384 0.398 0.411 220 kV 0.245 0.254 0.263 0.272 0.282 132 kV and below 0.245 0.254 0.263 0.272 0.282 Norms for AC and HVDC lines (Rs. lakh per km) Single Circuit (Bundled Conductor with six or more sub-conductors) 0.881 0.912 0.944 0.977 1.011 Single Circuit (Bundled conductor with four sub-conductors) 0.755 0.781 0.809 0.837 0.867 Single Circuit (Twin & Triple Conductor) 0.503 0.521 0.539 0.558 0.578 Single Circuit (Single Conductor) 0.252 0.260 0.270 0.279 0.289 Double Circuit (Bundled conductor with four or more sub-conductors) 1.322 1.368 1.416 1.466 1.517 Double Circuit (Twin & Triple Conductor) 0.881 0.912 0.944 0.977 1.011 Double Circuit (Single Conductor) 0.377 0.391 0.404 0.419 0.433 Multi Circuit (Bundled Conductor with four or more sub-conductor) 2.319 2.401 2.485 2.572 2.662 Multi Circuit (Twin & Triple Conductor) 1.544 1.598 1.654 1.713 1.773 Norms for HVDC stations HVDC Back-to-Back stations (Rs. Lakh per 500 MW) (Except Gazuwaka BTB) 834 864 894 925 958 Gazuwaka HVDC Back-to-Back station (Rs. Lakh per 500 MW) 1,666 1,725 1,785 1,848 1,913 500 kV Rihand-Dadri HVDC bipole scheme (Rs. Lakh) (1500 MW) 2,252 2,331 2,413 2,498 2,586 ±500 kV Talcher-Kolar HVDC bipole scheme (Rs. Lakh) (2000 MW) 2,468 2,555 2,645 2,738 2,834 ±500 kV Bhiwadi-Balia HVDC bipole scheme (Rs. Lakh) (2500 MW) 1,696 1,756 1,817 1,881 1,947 ±800 kV, Bishwanath-Agra HVDC bipole scheme (Rs. Lakh) (3000 MW) 2,563 2,653 2,746 2,842 2,942

Provided that the O&M expenses for the GIS bays shall be allowed as worked out by multiplying 0.70 of the O&M expenses of the normative O&M expenses for bays;

Provided further that:

i. the operation and maintenance expenses for new HVDC bi-pole schemes commissioned after 1.4.2019 for a particular year shall be allowed pro-rata on the basis of normative rate of operation and maintenance expenses of similar HVDC bi-pole scheme for the corresponding year of the tariff period;

ii. the O&M expenses norms for HVDC bi-pole line shall be considered as Double Circuit quad AC line;

iii. the O&M expenses of ±500 kV Mundra-Mohindergarh HVDC bipole scheme (2000 MW) shall be allowed as worked out by multiplying 0.80 of the normative O&M expenses for ±500 kV Talchar-Kolar HVDC bi-pole scheme (2000 MW);

iv. the O&M expenses of ±800 kV Champa-Kurukshetra HVDC bi-pole scheme (3000 MW) shall be on the basis of the normative O&M expenses for ±800 kV, Bishwanath-Agra HVDC bi-pole scheme;

v. the O&M expenses of ±800 kV, Alipurduar-Agra HVDC bi-pole scheme (3000 MW) shall be allowed as worked out by multiplying 0.80 of the normative O&M expenses for ±800 kV, Bishwanath-Agra HVDC bi-pole scheme; and

vi. the O&M expenses of Static Synchronous Compensator and Static Var Compensator shall be worked at 1.5% of original project cost as on commercial operation which shall be escalated at the rate of 3.51% to work out the O&M expenses during the tariff period. The O&M expenses of Static Synchronous Compensator and Static Var Compensator, if required, may be reviewed after three years.

(b) The total allowable operation and maintenance expenses for the transmission system shall be calculated by multiplying the number of sub-station bays, transformer capacity of the transformer (in MVA) and km of line length with the applicable norms for the operation and maintenance expenses per bay, per MVA and per km respectively.

(c) The Security Expenses and Capital Spares for transmission system shall be allowed separately after prudence check:

Provided that the transmission licensee shall submit the assessment of the security requirement and estimated security expenses, the details of year-wise actual capital spares consumed at the time of truing up with appropriate justification.

(4) Communication system: The operation and maintenance expenses for the communication system shall be worked out at 2.0% of the original project cost related to such communication system. The transmission licensee shall submit the actual operation and maintenance expenses for truing up.”

79. O&M Expenses claimed by the Petitioner in respect of the Combined Asset are as follows:

(Rs. in lakh)

Combined Asset Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 Sub-station Bays 132 kV : Silchar : 132 kV Srikona-I Bay 1 1 1 1 1 132 kV : Silchar : 132 kV Srikona-II Bay 1 1 1 1 1 132 kV : Srikona : 132 kV Silchar-I Bay 1 1 1 1 1 132 kV : Srikona : 132 kV Silchar-II Bay 1 1 1 1 1 132 kV : Silchar : Badarpur Bay-I 1 1 1 1 1 132 kV : Silchar : Badarpur Bay-II 1 1 1 1 1 132 kV : Badarpur : Silchar Bay-I 1 1 1 1 1 132 kV : Badarpur : Silchar Bay-II 1 1 1 1 1 132 kV : Silchar : Hailakadi 2 2 2 2 2 132 kV : Silchar : ICT-I Bay 1 1 1 1 1 132 kV : Silchar : ICT II Bay 1 1 1 1 1 132 kV : Surajmaninagar : 132 kV Palatana-I Bay at Surajmaninagar Sub-station 2 2 2 2 2 132 kV : Ziro : 132 kV, 4X6.6 MVAR Bus Reactor (Single Phase) at Ziro Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Bus Reactor Bay at Imphal Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Imphal-Ningthoukhong Bay at Imphal Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Bay of ICT-I at Imphal (NEW) Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Bay of ICT-II at Imphal Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Imphal Bay 1 1 1 1 1 132 kV : Mokokchung : Bays at MKK for MKK-MKK D/C Transmission Line 2 2 2 2 2 132 kV : Mokokchung : 132 kV D/C MKK-MKK Transmission Line Bays at MKK 2 2 2 2 2 132 kV : Mokokchung : ICT-II Bay at MKK 1 1 1 1 1 132 kV : Silchar : 132 kV Bay - I for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Silchar : 132 kV Bay - II for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Imphal : 132 kV Bay - I for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Imphal : 132 kV Bay - II for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Puba kanchanbari : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line(Charged at 132 kV) alongwith with Associated Bays 2 2 2 2 2 132 kV : Silchar : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) Alongwith with Associated Bays 1 1 1 1 1 132 kV : Silchar : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) Alongwith With Associated Bays 1 1 1 1 1 132 kV : Pasighat : 132 kV Roing Bay-132/33 kV Pasighat Sub-station-Roing (132) 1 1 1 1 1 132 kV : Roing : Pasighat-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : ICT I-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : ICT I-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : ICT II-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : ICT II-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : Bus Reactor-Roing-Roing (132) 1 1 1 1 1 132 kV : Tezu : Roing-I Bay at Tezu 1 1 1 1 1 132 kV : Tezu : Bus Reactor Bay at Tezu 1 1 1 1 1 132 kV : Roing : Tezu-I Bay at Roing 1 1 1 1 1 132 kV : Halakandi : 132 kV D/C Silchar-Hailkand Transmission Line 2 2 2 2 2 132 kV : Tezu : ICT I-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Tezu : ICT I-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Tezu : ICT II-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Tezu : ICT II-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Namsai : Tezu-Namsai-Namsai (132) 1 1 1 1 1 132 kV : Tezu : Namsai-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Namsai : 7X5 MVA 132/33 kV 1-PH ICT-I - II (Including 1 No Spare Transformer) at Namsai Sub-station 4 4 4 4 4 132 kV : Namsai : 4X6.67 MVAR 145 kV 1-PH Bus Reactor (Including 1 Number Spare Reactor) at Namsai Sub-station 1 1 1 1 1 132 kV : Mokokchung : 3*10 MVA, 220/132, ICT-I along with Associated Bays at Mokochung (PG) Sub-station 1 1 1 1 1 132 kV : Silchar : Mehleriat I-Silchar-Silchar 1 1 1 1 1 132 kV : Silchar : Mehleriat II-Silchar-Silchar 1 1 1 1 1 132 kV : Mleriat : 132 kV Melriat Line Bay Ckt-I 1 1 1 1 1 132 kV : Mleriat : 132 kV Melriat Line Bay Ckt-II 1 1 1 1 1 132 kV (GIS) : Mleriat : Sihhmui Ckt-I 1 1 1 1 1 132 kV (GIS) : Mleriat : 132 kV Sihhmui Line Bay Ckt-II 1 1 1 1 1 132 kV : Melriat-Aizwal : Aizwal-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 132 kV : Melriat-Aizwal : Zemabawk-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 132 kV (GIS) : Mleriat : Bus Reactor-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 132 kV : Mleriat : Silchar I-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 132 kV : Mleriat : Silchar II-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 220 kV : Mokokchung : 3*10 MVA, 220/132, ICT-I along with Associated Bays at Mokochung (PG) Sub-station 1 1 1 1 1 220 kV : Mokokchung : ICT-II Bay at MKK HV Side 1 1 1 1 1 220 kV : Mariani : Kathalguri Bay 1 1 1 1 1 220 kV : Mariani : Misa Bay 1 1 1 1 1 220 kV : Mariani : 20 MVAR Bus Reactor Bay Ta Mariani Switching Station 1 1 1 1 1 220 kV : Mariani : 220 kV D/C Marian-Mokokchung Line with Associated Bays 2 2 2 2 2 220 kV : Mokokchung : Mariani-Mokokchung Line Bay 2 2 2 2 2 400 kV : Silchar : ICT II Bay 1 1 1 1 1 400 kV : Silchar-400 kV Palatana Bay-I 1 1 1 1 1 400 kV : Silchar-400 kV Palatana Bay-II 1 1 1 1 1 400 kV : Silchar : ICT-I Bay 1 1 1 1 1 400 kV : Silchar-400 kV Palatana Slr Bay-I 1 1 1 1 1 400 kV : Silchar-400 kV Palatana Slr Bay-II 1 1 1 1 1 400 kV : Silchar - 400 kV Bus Reactor-I Bay 1 1 1 1 1 400 kV : Silchar - 400 kV Bus Reactor-II Bay 1 1 1 1 1 400 kV : Bongaigaon : Bus Reactor 1 1 1 1 1 400 kV : Silchar-Bongaigaon-I Bay at Silchar 1 1 1 1 1 400 kV : Silchar Slr Bay-I 1 1 1 1 1 400 kV : Silchar : Bongaigaon 1 1 1 1 1 400 kV : Silchar : Slr Bay 1 1 1 1 1 400 kV : Bongaigaon : Silchar - I Bay 1 1 1 1 1 400 kV : Bongaigaon : Silchar - II Bay 1 1 1 1 1 400 kV : Bongaigaon : Switchable Line Reactor Bay-400 kV : I for Silchar-I 1 1 1 1 1 400 kV : Bongaigaon : Switchable Line Reactor Bay-II for Silchar-II 1 1 1 1 1 400 kV : Bongaigaon : BTPS Bongaigaon 2 2 2 2 2 Total 132 kV (AIS) 61 61 61 61 61 132 kV (GIS) 7 7 7 7 7 220 kV (AIS) 9 9 9 9 9 400 kV (AIS) 19 19 19 19 19 Norms 132 kV (AIS) 16.080 16.640 17.230 17.830 18.460 132 kV (GIS) 11.256 11.648 12.061 12.481 12.922 220 kV (AIS) 22.510 23.300 24.120 24.960 25.840 400 kV (AIS) 32.150 33.280 34.450 35.660 36.910 Total Sub-station Bays O&M Expenses (A) 1873.112 1938.596 2007.087 2077.177 2150.364 Transformer (MVA Capacity) 400 kV : Silchar : ICT-I at Silchar 200 200 200 200 200 400 kV : Silchar : ICT-I at Silchar 200 200 200 200 200 220 kV : Mokokchung : ICT-II at MKK 30 30 30 30 30 220 kV : Mokokchung : ICT-I at Mokokchung 30 30 30 30 30 132 kV : Imphal : ICT-I and ICT-II at Imphal 100 100 100 100 100 132 kV : Roing : ICT I at Roing 15 15 15 15 15 132 kV : Roing : ICT II at Roing 15 15 15 15 15 132 kV : Namsai : Namsai ICT I 15 15 15 15 15 132 kV : Namsai : Namsai ICT I 15 15 15 15 15 Total 400 kV 0.358 0.371 0.384 0.398 0.411 220 kV 0.245 0.254 0.263 0.272 0.282 132 kV 0.245 0.254 0.263 0.272 0.282 Norms 400 kV 0.358 0.371 0.384 0.398 0.411 220 kV 0.245 0.254 0.263 0.272 0.282 132 kV 0.245 0.254 0.263 0.272 0.282 Total Transformer O&M Expenses (B) 204.45 211.90 219.35 227.20 234.90 AC Lines 132 kV D/C Silchar-Srikona Transmission Line 1.200 1.200 1.200 1.200 1.200 132 kV D/C Silchar-Badarpur Transmission Line 19.200 19.200 19.200 19.200 19.200 132 kV D/C Silchar-Hailakandi Transmission Line 15.000 15.000 15.000 15.000 15.000 400 kV D/C Palatana-Surajmaninagar Transmission Line 37.200 37.200 37.200 37.200 37.200 400 kV D/C BTPS - Bongaigaon Transmission Line 3.187 3.187 3.187 3.187 3.187 LILO of 220 kV Misa-Kathalguri Line at Mariani Switching Station 0.170 0.170 0.170 0.170 0.170 Loop in Line of 132 kV Imphal-Ningthoukhong Line at Imphal Sub-station 0.352 0.352 0.352 0.352 0.352 Loop in Line of 132 kV Imphal-Ningthoukhong Line at Imphal Sub-station 0.090 0.090 0.090 0.090 0.090 Loop Out Line of 132 kV Imphal-Ningthoukhong Line alongwith 1No Associated Bay at Imphal Sub-station 0.339 0.339 0.339 0.339 0.339 220 kV D/C Marian-Mokokchung Line with Associated Bays 48.410 48.410 48.410 48.410 48.410 132 kV D/C Mokok-Mokokchung Transmission Line alongwith Associated Bays 1.45 1.45 1.45 1.45 1.45 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 166.976 166.976 166.976 166.976 166.976 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) Alongwith with Asso. 128.77 128.77 128.77 128.77 128.77 132 kV S/C (on D/C Tower) Pasighat-Roing Transmission Line 102.88 102.88 102.88 102.88 102.88 132 kV S/C (on D/C Tower) Roing Tezu Transmission Line 72.45 72.45 72.45 72.45 72.45 132 kV D/C Silchar-Hailkand Transmission Line 12.76 12.76 12.76 12.76 12.76 132 kV S/C (On D/C Towers) Tezu-Namsai Transmission Line 95.097 95.097 95.097 95.097 95.097 400 kV D/C Silchar-Mleiriat (New) Transmission Line (Charges at 132 kV) Along with Associated Bays at Silchar and Mleiriat 143.256 143.256 143.256 143.256 143.256 LILO of 132 kV S/C Aizawl-Zemabawk Transmission Line Alongwith Associated Bays at Mleitrial (GIS) Sub-station 4.56 4.56 4.56 4.56 4.56 132 kV D/C Mleriat (New) Shihhmui (Mizoram) 6.122 6.122 6.122 6.122 6.122 Total S/C (Single Conductor) 21.813 21.813 21.813 21.813 21.813 D/C Twin/Triple Conductor 479.559 479.559 479.559 479.559 479.559 D/C Single Conductor 358.097 358.097 358.097 358.097 358.097 Norms S/C (Single Conductor) 0.252 0.260 0.270 0.279 0.289 D/C Twin/Triple Conductor 0.881 0.912 0.944 0.977 1.011 D/C Single Conductor 0.377 0.391 0.404 0.419 0.433 Total Transmission Line (C) 563.76 583.84 604.08 625.52 647.07 Communication System PLCC 1329.64 1329.64 1329.64 1329.64 1329.64 Norms (in %) 2 2 2 2 2 Total Communication System (D) 26.59 26.59 26.59 26.59 26.59 Total O&M Expenses (E) = (A)+(B)+(C)+(D) 2667.98 2760.97 2857.15 2956.49 3058.92

80. The Petitioner has claimed O&M Expenses separately for PLCC under Regulation 35(4) of the 2019 Tariff Regulations @2% of its original project cost in the instant petition and the Petitioner has made similar claim in other petitions as well. Though PLCC is a communication system, it has been considered as part of the sub-station in the 2014 and 2019 Tariff Regulations and the norms for sub-station has been specified accordingly. Accordingly, the Commission vide order dated 24.1.2021 in Petition No. 126/TT/2020 has already concluded that no separate O&M Expenses can be allowed for PLCC under Regulation 35(4) of the 2019 Tariff Regulations even though PLCC is a communication system. Therefore, the Petitioner's claim for separate O&M Expenses for PLCC @2% is not allowed.

81. O&M Expenses allowed are as follows:

(Rs. in lakh)

Combined Asset - 1 to 36 (except - Asset-35) Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 Sub-station Bays 132 kV : Silchar : 132 kV Srikona-I Bay 1 1 1 1 1 132 kV : Silchar : 132 kV Srikona-II Bay 1 1 1 1 1 132 kV : Srikona : 132 kV Silchar-I Bay 1 1 1 1 1 132 kV : Srikona : 132 kV Silchar-II Bay 1 1 1 1 1 132 kV : Silchar : Badarpur Bay-I 1 1 1 1 1 132 kV : Silchar : Badarpur Bay-II 1 1 1 1 1 132 kV : Badarpur : Silchar Bay-I 1 1 1 1 1 132 kV : Badarpur : Silchar Bay-II 1 1 1 1 1 132 kV : Silchar : Hailakadi 2 2 2 2 2 132 kV : Silchar : ICT-I Bay 1 1 1 1 1 132 kV : Silchar : ICT II Bay 1 1 1 1 1 132 kV : Surajmaninagar : 132 kV Palatana-I Bay at Surajmaninagar Sub-station 2 2 2 2 2 132 kV : Ziro : 132 kV, 4X6.6 MVAR Bus Reactor (Single Phase) at Ziro Substation 1 1 1 1 1 132 kV : Imphal : 132 kV Bus Reactor Bay at Imphal Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Imphal-Ningthoukhong Bay at Imphal Substation 1 1 1 1 1 132 kV : Imphal : 132 kV Bay of ICT-I at Imphal (New) Sub-station 1 1 1 1 1 132 kV : Imphal : 132kV Bay of ICT-II at Imphal Sub-station 1 1 1 1 1 132 kV : Imphal : 132 kV Imphal Bay 1 1 1 1 1 132 kV : Mokokchung : Bays at MKK for MKK-MKK D/C Transmission Line 2 2 2 2 2 132 kV : Mokokchung : 132 kV D/C MKK-MKK Transmission Line Bays at MKK 2 2 2 2 2 132 kV : Mokokchung : ICT-II Bay at MKK 1 1 1 1 1 132 kV : Silchar : 132 kV Bay - I for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Silchar : 132 kV Bay - II for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Imphal : 132 kV Bay - I for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Imphal : 132 kV Bay - II for 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 1 1 1 1 1 132 kV : Puba kanchanbari : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132kV) alongwith with Associated Bays 2 2 2 2 2 132 kV : Silchar : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) Alongwith with Associated Bays 1 1 1 1 1 132 kV : Silchar : 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) Alongwith With Associated Bays 1 1 1 1 1 132 kV : Pasighat : 132 kV Roing Bay-132/33 kV Pasighat Sub-station-Roing (132) 1 1 1 1 1 132 kV : Roing : Pasighat-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : ICT I-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : ICT I-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : ICT II-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : ICT II-Roing-Roing (132) 1 1 1 1 1 132 kV : Roing : Bus Reactor-Roing-Roing (132) 1 1 1 1 1 132 kV : Tezu : Roing-I Bay at Tezu 1 1 1 1 1 132 kV : Tezu : Bus Reactor Bay at Tezu 1 1 1 1 1 132 kV : Roing : Tezu-I Bay at Roing 1 1 1 1 1 132 kV : Halakandi : 132 kV D/C Silchar-Hailkand Transmission Line 2 2 2 2 2 132 kV : Tezu : ICT I-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Tezu : ICT I-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Tezu : ICT II-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Tezu : ICT II-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Namsai : Tezu-Namsai-Namsai (132) 1 1 1 1 1 132 kV : Tezu : Namsai-Tezu-Tezu (132) 1 1 1 1 1 132 kV : Namsai : 7X5 MVA 132/33 kV 1-PH ICT-I - II (Including 1 Number Spare Transformer) at Namsai Substation 4 4 4 4 4 132 kV : Namsai : 4X6.67 MVAR 145 kV 1-PH Bus Reactor (Including 1 Number Spare Reactor) at Namsai Sub-station 1 1 1 1 1 132 kV : Mokokchung : 3*10 MVA, 220/132, ICT-I along with Associated Bays at Mokochung (PG) Sub-station 1 1 1 1 1 132 kV : Silchar : Mlhleriat I-Silchar-Silchar 1 1 1 1 1 132 kV : Silchar : Mlehleriat II-Silchar-Silchar 1 1 1 1 1 132 kV : Mleriat-Aizwal : Aizwal-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 132 kV : Mleriat-Aizwal : Zemabawk-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 132 kV (GIS) : Mleriat : Bus Reactor-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 132 kV : Mleriat : Silchar I_Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 132 kV : Mleriat : Silchar II-Mleriat-Mleriat (132 kV GIS) 1 1 1 1 1 220 kV : Mokokchung : 3*10 MVA, 220/132, ICT-I along with Associated Bays at Mokochung (PG) Sub-station 1 1 1 1 1 220 kV : Mokokchung : ICT-II Bay at MKK HV Side 1 1 1 1 1 220 kV : Mariani : Kathalguri Bay 1 1 1 1 1 220 kV : Mariani : Misa Bay 1 1 1 1 1 220 kV : Mariani : 20 MVAR Bus Reactor Bay Ta Mariani Switching Station 1 1 1 1 1 220 kV : Mariani : 220 kV D/C Marian-Mokokchung Line with Associated Bays 2 2 2 2 2 220 kV : Mokokchung : Mariani-Mokokchung Line Bay 2 2 2 2 2 400 kV : Silchar : ICT II Bay 1 1 1 1 1 400 kV : Silchar-400 kV Palatana Bay-I 1 1 1 1 1 400 kV : Silchar-400 kV Palatana Bay-II 1 1 1 1 1 400 kV : Silchar : ICT-I Bay 1 1 1 1 1 400 kV : Silchar-400 kV Palatana Slr Bay-I 1 1 1 1 1 400 kV : Silchar-400 kV Palatana Slr Bay-II 1 1 1 1 1 400 kV : Silchar - 400 kV Bus Reactor-I Bay 1 1 1 1 1 400 kV : Silchar - 400 kV Bus Reactor-II Bay 1 1 1 1 1 400 kV : Bongaigaon : Bus Reactor 1 1 1 1 1 400 kV : Silchar-Bongaigaon-I Bay at Silchar 1 1 1 1 1 400 kV : Silchar Slr Bay-I 1 1 1 1 1 400 kV : Silchar : Bongaigaon 1 1 1 1 1 400 kV : Silchar : Slr Bay 1 1 1 1 1 400 kV : Bongaigaon : Silchar - I Bay 1 1 1 1 1 400 kV : Bongaigaon : Silchar - II Bay 1 1 1 1 1 400 kV : Bongaigaon : Switchable Line Reactor Bay-400 kV : I for Silchar-I 1 1 1 1 1 400 kV : Bongaigaon : Switchable Line Reactor Bay-II for Silchar-II 1 1 1 1 1 400 kV : Bongaigaon : BTPS Bongaigaon 2 2 2 2 2 Total 132 kV (AIS) 59 59 59 59 59 132 kV (GIS) 5 5 5 5 5 220 kV (AIS) 9 9 9 9 9 400 kV (AIS) 19 19 19 19 19 Norms 132 kV (AIS) 16.080 16.640 17.230 17.830 18.460 132 kV (GIS) 11.256 11.648 12.061 12.481 12.922 220 kV (AIS) 22.510 23.300 24.120 24.960 25.840 400 kV (AIS) 32.150 33.280 34.450 35.660 36.910 Total Sub-station Bays O&M Expenses (A) 1818.44 1882.02 1948.51 2016.56 2087.60 Transformer (MVA Capacity) 400 kV : Silchar : ICT-I at Silchar 200 200 200 200 200 400 kV : Silchar : ICT-I at Silchar 200 200 200 200 200 220 kV : Mokokchung : ICT-II at MKK 30 30 30 30 30 220 kV : Mokokchung : ICT-I at Mokokchung 30 30 30 30 30 132 kV : Imphal : ICT-I and ICT-II at Imphal 100 100 100 100 100 132 kV : Roing : ICT I at Roing 15 15 15 15 15 132 kV : Roing : ICT II at Roing 15 15 15 15 15 132 kV : Namsai : Namsai ICT I 15 15 15 15 15 132 kV : Namsai : Namsai ICT I 15 15 15 15 15 Total 400 kV 0.358 0.371 0.384 0.398 0.411 220 kV 0.245 0.254 0.263 0.272 0.282 132 kV 0.245 0.254 0.263 0.272 0.282 Norms 400 kV 0.358 0.371 0.384 0.398 0.411 220 kV 0.245 0.254 0.263 0.272 0.282 132 kV 0.245 0.254 0.263 0.272 0.282 Total Transformer O&M Expenses (B) 204.45 211.90 219.35 227.20 234.90 AC & HVDC Lines 132 kV D/C Silchar-Srikona Transmission Line 1.200 1.200 1.200 1.200 1.200 132 kV D/C Silchar-Badarpur Transmission Line 19.200 19.200 19.200 19.200 19.200 132 kV D/C Silchar-Hailakandi Transmission Line 15.000 15.000 15.000 15.000 15.000 400 kV D/C Palatana-Surajmaninagar Transmission Line 37.200 37.200 37.200 37.200 37.200 400 kV D/C BTPS - Bongaigaon Transmission Line 3.187 3.187 3.187 3.187 3.187 LILO of 220 kV Misa-Kathalguri Line at Mariani Switching Station 0.170 0.170 0.170 0.170 0.170 Loop in Line of 132 kV Imphal-Ningthoukhong Line at Imphal Substation 0.352 0.352 0.352 0.352 0.352 Loop in Line of 132 kV Imphal-Ningthoukhong Line at Imphal Substation 0.090 0.090 0.090 0.090 0.090 Loop Out Line of 132 kV Imphal-Ningthoukhong Line alongwith 1No Associated Bay at Imphal Sub-station 0.339 0.339 0.339 0.339 0.339 220 kV D/C Marian-Mokokchung Line with Associated Bays 48.410 48.410 48.410 48.410 48.410 132 kV D/C Mokok-Mokokchung Transmission Line alongwith Associated Bays 1.45 1.45 1.45 1.45 1.45 400 kV D/C Silchar - Imphal Transmission Line (To be charged at 132 kV) 166.976 166.976 166.976 166.976 166.976 400 kV D/C Silchar-Purba Kanchanbari Transmission Line (Charged at 132 kV) alongwith with Associated Bays 128.77 128.77 128.77 128.77 128.77 132 kV S/C (on D/C Tower) Pasighat-Roing Transmission Line 102.88 102.88 102.88 102.88 102.88 132 kV S/C (on D/C Tower) Roing Tezu Transmission Line 72.45 72.45 72.45 72.45 72.45 132 kV D/C Silchar-Hailkand Transmission Line 12.76 12.76 12.76 12.76 12.76 132 kV S/C (On D/C Towers) Tezu-Namsai Transmission Line 95.097 95.097 95.097 95.097 95.097 400 kV D/C Silchar-Mleiriat (New) Transmission Line (Charges at 132 kV) Along with Associated Bays at Silcher and Mleiriat 143.256 143.256 143.256 143.256 143.256 LILO of 132 kV S/C Aizawl-Zemabawk Transmission Line Alongwith Associated Bays at Meitrial (GIS) Substation 4.56 4.56 4.56 4.56 4.56 Total S/C (Single Conductor) 15.691 15.691 15.691 15.691 15.691 D/C Twin/Triple Conductor 479.559 479.559 479.559 479.559 479.559 D/C Single Conductor 358.097 358.097 358.097 358.097 358.097 Norms S/C (Single Conductor) 0.252 0.260 0.270 0.279 0.289 D/C Twin/Triple Conductor 0.881 0.912 0.944 0.977 1.011 D/C Single Conductor 0.377 0.391 0.404 0.419 0.433 Total Transmission Line (C) 561.45 581.45 601.61 622.95 644.42 Total O&M Expenses D= (A)+(B)+(C) 2584.34 2675.37 2769.47 2866.70 2966.92

(Rs. in lakh)

Asset-35 Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 Sub-station Bays 132 kV : Mleriat : 132 kV Melriat Line Bay Ckt-I 1 1 1 1 1 132 kV : Mleriat : 132 kV Melriat Line Bay Ckt-II 1 1 1 1 1 132 kV (GIS) : Mleriat : Sihhmui Ckt-I 1 1 1 1 1 132 kV (GIS) : Mleriat : 132 kV Sihhmui Line Bay Ckt-II 1 1 1 1 1 Total 132 kV 4 4 4 4 4 Norms 132 kV (AIS) 16.080 16.640 17.230 17.830 18.460 132 kV (GIS) 11.256 11.648 12.061 12.481 12.922 Total Sub-station Bays O&M Expenses AC & HVDC Lines 54.67 56.58 58.58 60.62 62.76 132 kV D/C Melriat (New) Shihhmui (Mizoram) 6.122 6.122 6.122 6.122 6.122 Norms D/C Single Conductor 0.377 0.391 0.404 0.419 0.433 Total Transmission Line 2.31 2.39 2.47 2.57 2.65 Total O&M Expenses 56.98 58.97 61.06 63.19 65.41

Interest on Working Capital (“IWC”)

82. Regulation 34(1)(c), Regulation 34(3) and Regulation 35(4) and Regulation 3(7) of the 2019 Tariff Regulations provide as follows:

“34. Interest on Working Capital: (1) The working capital shall cover:

(c) For Hydro Generating Station (including Pumped Storage Hydro Generating Station) and Transmission System:

(i) Receivables equivalent to 45 days of annual fixed cost;

(ii) Maintenance spares @ 15% of operation and maintenance expenses including security expenses; and

(iii) Operation and maintenance expenses, including security expenses for one month.”

(3) Rate of interest on working capital shall be on normative basis and shall be considered as the bank rate as on 1.4.2019 or as on 1st April of the year during the tariff period 2019-24 in which the generating station or a unit thereof or the transmission system including communication system or element thereof, as the case may be, is declared under commercial operation, whichever is later:

Provided that in case of truing-up, the rate of interest on working capital shall be considered at bank rate as on 1st April of each of the financial year during the tariff period 2019-24.

(4) Interest on working capital shall be payable on normative basis notwithstanding that the generating company or the transmission licensee has not taken loan for working capital from any outside agency.”

“3. Definition - In these regulations, unless the context otherwise requires : -

(7) ‘Bank Rate’ means the one year marginal cost of lending rate (MCLR) of the State Bank of India issued from time to time plus 350 basis points;”

83. The Petitioner has submitted that it has computed IWC for 2019-24 period considering the SBI Base Rate plus 350 basis points as on 1.4.2019. The Petitioner has considered the rate of IWC as 12.05%. IWC is worked out in accordance with Regulation 34 of the 2019 Tariff Regulations. The rate of IWC considered is 12.05% (SBI 1 year MCLR applicable as on 1.4.2019 of 8.55% plus 350 basis points) for 2019-20, 11.25% (SBI 1 year MCLR applicable as on 1.4.2020 of 7.75% plus 350 basis points) for 2020-21, 10.50% (SBI 1 year MCLR applicable as on 1.4.2021 of 7.00% plus 350 basis points) for 2021-24 onwards. The components of the working capital and interest allowed thereon are as follows:

(Rs. in lakh)

Combined Asset-1 to 36 (except Asset-35) Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Working Capital for O&M Expenses (O&M expenses for one month) 215.36 222.95 230.79 238.89 247.24 B Working Capital for Maintenance Spares (15% of O&M expenses) 387.65 401.31 415.42 430.01 445.04 C Working Capital for Receivables (Equivalent to 45 days of annual fixed cost/annual transmission charges) 6018.81 5989.11 5872.74 5710.96 5532.06 D Total of Working Capital 6621.82 6613.36 6518.94 6379.86 6224.35 E Rate of Interest for Working Capital (in %) 12.05 11.25 10.50 10.50 10.50 F Interest of working capital 797.93 744.00 684.49 669.89 653.56

(Rs. in lakh)

Asset-35 Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Working Capital for O&M Expenses (O&M expenses for one month) 4.75 4.91 5.09 5.27 5.45 B Working Capital for Maintenance Spares (15% of O&M expenses) 8.55 8.85 9.16 9.48 9.81 C Working Capital for Receivables (Equivalent to 45 days of annual fixed cost/annual transmission charges) 59.44 60.82 60.29 59.07 57.67 D Total of Working Capital 72.73 74.58 74.54 73.82 72.93 E Rate of Interest for Working Capital (in %) 12.05 11.25 10.50 10.50 10.509 F Interest of working capital 8.76 8.39 7.83 7.75 7.66

Annual Fixed Charges for 2019-24 Tariff Period

84. The transmission charges allowed for 2019-24 tariff period are as follows:

(Rs. in lakh)

Combined Asset-1 to 36 (except Asset-35) Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 Depreciation 15632.51 15934.33 16053.13 16053.13 16053.13 Interest on Loan 13193.35 12148.90 10919.69 9524.86 8112.86 Return on Equity 16744.89 17075.78 17207.71 17207.71 17207.71 O&M Expenses 2584.34 2675.37 2769.47 2866.70 2966.92 Interest on Working Capital 797.93 744.00 684.49 669.89 653.56 Total 48953.02 48578.38 47634.49 46322.29 44994.18

(Rs. in lakh)

Asset-35 Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 Depreciation 125.40 131.82 133.75 133.75 133.75 Interest on Loan 144.06 139.34 129.73 117.79 105.51 Return on Equity 148.21 154.84 156.69 156.69 156.69 O&M Expenses 56.98 58.97 61.06 63.19 65.41 Interest on Working Capital 8.76 8.39 7.83 7.75 7.66 Total 483.41 493.36 489.06 479.17 469.02

Filing Fee and Publication Expenses

85. The Petitioner has sought reimbursement of fee paid by it for filing the petition and publication expenses in terms of Regulation 70(1) of the 2019 Tariff Regulations. The Petitioner shall be 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 70(1) of the 2019 Tariff Regulations.

Licence Fee and RLDC Fees and Charges

86. The Petitioner shall be entitled for reimbursement of licence fee in accordance with Regulation 70(4) of the 2019 Tariff Regulations for the 2019-24 tariff period. The Petitioner shall also be entitled for recovery of RLDC fee and charges in accordance with Regulations 70(3) of the 2019 Tariff Regulations for the 2019-24 tariff period.

Goods and Services Tax

87. The Petitioner has submitted that, if GST is levied at any rate and at any point of time in future on charges of transmission of electricity, the same shall be borne and additionally paid by the Respondent(s) to the Petitioner and the same shall be charged and billed separately by the Petitioner. Further additional taxes, if any, are to be paid by the Petitioner on account of demand from Government/Statutory authorities, the same may be allowed to be recovered from the beneficiaries.

88. We have considered the submission of the Petitioner. GST is not levied on transmission service at present. Therefore, we are of the view that Petitioner's prayer is premature.

Security Expenses

89. The Petitioner has submitted that security expenses in respect of the transmission assets are not claimed in the instant petition and it would file a separate petition for claiming the overall security expenses and the consequential IWC.

90. We have considered the submissions of the Petitioner. The Petitioner has claimed consolidated security expenses on projected basis for 2019-24 tariff period on the basis of actual security expenses incurred in 2018-19 in Petition No. 260/MP/2020. The Commission vide order dated 3.8.2021 in Petition No. 260/MP/2020 approved security expenses from 1.4.2019 to 31.3.2024. Therefore, security expenses will be shared in terms of the order dated 3.8.2021 in Petition No. 260/MP/2020. Accordingly, the Petitioner's prayer in the instant petition for allowing it to file a separate petition for claiming the overall security expenses and consequential IWC has become infructuous.

Capital Spares

91. The Petitioner has sought reimbursement of capital spares at the end of tariff period. The Petitioner's claim, if any, shall be dealt with in accordance with the provisions of the 2019 Tariff Regulations.

Sharing of Transmission Charges

92. The Petitioner has submitted that for 2014-19 period the transmission charges in respect of Asset-4, Bongaigaon Transmission Line along with associated bays at Bongaigaon Sub-station shall be borne by NTPC from 1.1.2013 till 31.3.2016 (commissioning of NTPC Bongaigaon TPS). Thereafter, transmission charges for 2014-19 period shall be recovered in accordance with Regulation 43 of the 2014 Tariff Regulationsand shall be shared by the beneficiaries and long term transmission customers as per the 2010 Sharing Regulations dated 15.6.2010 and amendment to these Regulations issued vide order dated 30.11.2012 or as amended from to time.

93. The Petitioner has further submitted that the transmission charges for 2014-19 period shall be recovered for all assets, except Asset-4 (from the period 1.4.2014 to 31.3.2016) on monthly basis in accordance with Regulation 42 of the 2014 Tariff Regulations and shall be shared by the Respondents in accordance with Regulation 43 of the 2014 Tariff Regulations and shall be shared by the beneficiaries and long term transmission customers as per the 2010 Sharing Regulations dated 15.6.2010 and amendment to these Regulations issued vide order dated 30.11.2012 or as amended from to time.

94. The Petitioner has submitted that the tariff for transmission of electricity (Annual Fixed Cost) for 2019-24 period shall be recovered on monthly basis in accordance with Regulation 57 of the 2019 Traiff Regulations and shall be shared by the beneficiaries and long term transmission customers. The 2010 Sharing Regulations dated 15.6.2010 and amendment to these Regulations issued vide order dated 30.11.2012 or as amended from to time.

95. We have considered the submissions of the Petitioner. As stated earlier in paragraph 3 of this order above, as per the direction of the Commission in order dated 22.2.2014 in Petition No. 184/TT/2011, transmission charges of Asset 4 : 400 kV D/C Bongaigaon TPS-Bongaigaon transmission line along with associated bays at Bongaigaon Sub-station shall be borne by NTPC from 1.1.2013 till 31.3.2016 (commissioning of NTPC Bongaigaon TPS) and thereafter the transmission charges of Asset-4 shall be included in PoC pool.

96. The Commission vide order dated 7.1.2020 in Petition No. 364/TT/2018 has approved the COD of Asset-35 (Asset-III in Petition No. 364/TT/2018) as 1.12.2018 under proviso (ii) of Regulation 4(3) of the 2014 Tariff Regulations, due to non-commissioning of the downstream assets under the scope of P & E Department, State of Mizoram. Hence, as stated earlier in paragraph 3 of this order above, the transmission charges with respect to Asset-35 shall be borne by P & E Department, State of Mizoram till the COD of its downstream transmission system. Thereafter, the billing, collection and disbursement of the transmission charges approved shall be governed by the provisions of Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010, as amended from time to time and as provided in Regulation 43 of the 2014 Tariff Regulations.

97. With effect from 1.7.2011, sharing of transmission charges for inter-State transmission systems was governed by the 2010 Sharing Regulations and with effect from 1.11.2020 (after repeal of the 2010 Sharing Regulations), sharing of transmission charges is governed by the 2020 Sharing Regulations. Accordingly, the liabilities of DICs for arrears of transmission charges determined through this order shall be computed DIC-wise in accordance with the provisions of Sharing Regulations and shall be recovered from the concerned DICs through Bills under Regulation 15(2)(b) of the 2020 Sharing Regulations.

98. To summarise:

(a) The trued-up AFC approved in respect of the transmission assets for 2014-19 tariff period are as follows:

(Rs. in lakh)

Particulars Combined Asset-1 to 12 (except Asset-4) (1.4.2014 to 31.3.2016) Asset-4 2014-15 2015-16 2014-15 2015-16 AFC 6682.97 6762.45 457.36 456.30

(Rs. in lakh)

Combined Asset-1 to 12 (1.4.2016 to 31.3.2019) Particulars 2016-17 2017-18 2018-19 AFC 7165.50 7081.65 6994.41

(Rs. in lakh)

Combined Asset-13 to 20 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 AFC 1019.53 1079.44 1125.63 1137.06 1148.82

(Rs. in lakh)

Asset-21 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 AFC 1122.18 1770.11 1811.17 1805.53

(Rs. in lakh)

Asset-22 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 AFC 479.62 794.97 823.35 837.64

(Rs. in lakh)

Asset-23 Particulars 2015-16 (Pro-rata for 213 days) 2016-17 2017-18 2018-19 AFC 140.53 255.89 262.46 264.18

(Rs. in lakh)

Asset-24 Particulars 2014-15 (Pro-rata for 10 days) 2015-16 2016-17 2017-18 2018-19 AFC 230.18 9447.27 10546.22 10492.27 10252.95

(Rs. in lakh)

Asset-25 Particulars 2015-16 (Pro-rata for 244 days) 2016-17 2017-18 2018-19 AFC 4756.54 7474.66 7573.70 7504.74

(Rs. in lakh)

Asset-26 Asset-27 Particulars 2017-18 (Pro-rata for 293 days) 2018-19 2017-18 (Pro-rata for 291 days) 2018-19 AFC 2955.99 3748.19 1434.00 1855.82

(Rs. in lakh)

Asset-28 Asset-29 Particulars 2017-18 (Pro-rata for 135 days) 2018-19 2017-18 (Pro-rata for 70 days) 2018-19 AFC 129.89 411.51 36.08 190.15

(Rs. in lakh)

Asset-30 Asset-31 Asset-32 Particulars 2017-18 (Pro-rata for 70 days) 2018-19 2018-19 (Pro-rata for 270 days) 2018-19 (Pro-rata for 291 days) AFC 37.93 199.05 2318.49 140.43

(Rs. in lakh)

Asset-33 Asset-34 Asset-35 Asset-36 Particulars 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 121 days) 2018-19 (Pro-rata for 65 days) AFC 4104.88 113.40 184.86 42.58

(b) AFC allowed in respect of the Combined Asset for 2019-24 tariff period in this order are as follows:

(Rs. in lakh)

Assets 2019-20 2020-21 2021-22 2022-23 2023-24 Combined Asset-1 to 36 (except Asset-35) 48953.02 48578.38 47634.49 46322.29 44994.18 Asset-35 483.41 493.36 489.06 479.17 469.02

99. Annexure-I and Annexure-II given hereinafter form part of the order.

100. This order disposes of Petition No. 657/TT/2020 in terms of the above discussions and findings.

Annexure-I

2014-19 Admitted Capital Cost as on 1.4.2014 (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on 1.4.2014 2014-19 2014-15 (Rs. in lakh) 2015-16 (Rs. in lakh) Freehold Land 109.18 0.00 109.18 0.00 0.00 0.00 Building 1264.02 318.44 1582.46 3.34 47.03 52.35 Transmission Line 12623.72 388.34 13012.06 5.28 676.61 686.86 Sub Station 14756.60 1123.51 15880.11 5.28 800.88 830.54 PLCC 286.55 94.08 380.63 6.33 20.91 23.89 IT Equipment and software 404.61 3.90 408.51 5.28 21.36 21.47 Total 29444.68 1928.27 31372.95 1566.79 1615.11 Average Gross Block (Rs. in lakh) 30234.96 31199.09 Weighted Average Rate of Depreciation (in %) 5.18 5.18

Annexure-I

Asset-4 2014-19 Admitted Capital Cost as on 1.4.2014 (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on 1.4.2014 2014-19 2014-15 (Rs. in lakh) 2015-16 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 Building 0.00 0.00 0.00 3.34 0.00 0.00 Transmission Line 1162.89 17.87 1180.76 5.28 61.40 61.87 Sub Station 705.71 0.00 705.71 5.28 37.26 37.26 PLCC 25.00 22.81 47.81 6.33 1.92 2.64 IT Equipment and software 0.00 0.00 0.00 5.28 0.00 0.00 Total 1893.60 40.68 1934.28 100.58 101.77 Average Gross Block (Rs. in lakh) 1898.86 1919.20 Weighted Average Rate of Depreciation (in %) 5.30 5.30

Annexure-I

Combined Asset-1 to 12 2014-19 Admitted Capital Cost as on 1.4.2016 (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on 1.4.2016 2016-19 2016-17 (Rs. in lakh) 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 109.18 0.00 109.18 0.00 0.00 0.00 0.00 Building 1582.46 130.36 1712.82 3.34 53.39 53.93 55.57 Transmission Line 14192.82 115.66 14308.48 5.28 752.34 755.40 755.49 Sub Station 16585.82 81.12 16666.94 5.28 877.67 879.81 880.01 PLCC 428.44 13.32 441.76 6.33 27.33 27.75 27.96 IT Equipment and software 408.51 0.00 408.51 5.28 21.57 21.57 21.57 Total 33307.23 340.46 33647.69 1732.31 1738.46 1740.60 Average Gross Block (Rs. in lakh) 33419.48 33540.63 33598.61 Weighted Average Rate of Depreciation (in %) 5.18 5.18 5.18

Annexure-I

Combined Asset-13 to 20 2014-19 Admitted Capital Cost as on 1.4.2014 (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreci ation (i n %) Annual Depreciation as per Regulations Capital Expenditure as on 1.4.2014 2014-19 2014-15 (Rs. in lakh) 2015-16 (Rs. in lakh) 2016-17 (Rs. in lakh) 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 533.19 0.00 533.19 0.00 0.00 0.00 0.00 0.00 0.00 Building 4.25 175.82 180.07 3.34 0.14 2.52 4.94 5.50 6.01 Transmission Line 136.02 133.79 269.81 5.28 7.18 10.65 14.18 14.25 14.25 Sub Station 3134.84 724.22 3859.06 5.28 169.17 182.36 191.99 197.92 203.76 PLCC 91.52 2.40 93.92 6.33 5.79 5.87 5.95 5.95 5.95 IT Equipment and software 192.06 5.38 197.44 5.28 10.14 10.25 10.36 10.39 10.42 Total 4091.88 1041.61 5133.49 192.43 211.65 227.42 234.00 240.39 Average Gross Block (Rs. in lakh) 4161.05 4551.05 4876.04 5006.84 5133.49 Weighted Average Rate of Depreciation (in %) 4.62 4.65 4.66 4.67 4.68

Annexure-I

Asset-21 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreci ation (i n %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2015-16 (Rs. in lakh) 2016-17 (Rs. in lakh) 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Building 49.88 12.78 62.66 3.34 1.79 2.00 2.09 2.09 Transmission Line 5319.88 794.75 6114.63 5.28 283.87 301.90 319.65 322.60 Sub Station 2310.96 922.21 3233.17 5.28 138.04 155.26 163.59 170.71 PLCC 95.68 16.29 111.97 6.33 6.23 6.41 6.75 7.09 IT Equipment and software 234.32 6.64 240.96 5.28 12.52 12.68 12.72 12.72 Total 8010.71 1752.68 9763.39 442.45 478.27 504.80 515.22 Average Gross Block (Rs. in lakh) 8379.81 9059.92 9562.40 9758.63 Weighted Average Rate of Depreciation (in %) 5.28 5.28 5.28 5.28

Annexure-I

Asset-22 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreci ation (i n %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2015-16 (Rs. in lakh) 2016-17 (Rs. in lakh) 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Building 311.81 218.37 530.18 3.34 12.23 15.25 16.95 17.57 Transmission Line 345.50 161.28 506.78 5.28 21.98 26.00 26.52 26.76 Sub Station 1688.03 816.25 2504.28 5.28 101.70 117.29 126.26 132.23 PLCC 40.46 30.75 71.21 6.33 2.66 3.30 4.16 4.48 Leasehold Land 108.99 0.00 108.99 3.34 3.64 3.64 3.64 3.64 IT Equipment and software 59.71 4.56 64.27 5.28 3.19 3.23 3.31 3.39 Total 2554.49 1231.21 3785.70 145.40 168.72 180.84 188.07 Average Gross Block (Rs. in lakh) 2920.06 3392.84 3638.36 3781.18 Weighted Average Rate of Depreciation (in %) 4.98 4.97 4.97 4.97

Annexure-I

Asset-23 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreci ation (i n %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2015-16 (Rs. in lakh) 2016-17 (Rs. in lakh) 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Building 0.00 0.00 0.00 3.34 0.00 0.00 0.00 0.00 Transmission Line 0.00 0.00 0.00 5.28 0.00 0.00 0.00 0.00 Sub Station 817.98 223.03 1041.00 5.28 26.82 50.65 53.60 54.92 PLCC 0.00 0.00 0.00 6.33 0.00 0.00 0.00 0.00 Leasehold Land 0.00 0.00 0.00 3.34 0.00 0.00 0.00 0.00 IT Equipment and software 36.68 1.29 37.98 5.28 1.14 1.99 2.00 2.01 Total 854.66 224.32 1078.98 27.96 52.64 55.60 56.92 Average Gross Block (Rs. in lakh) 909.90 996.98 1053.01 1078.08 Weighted Average Rate of Depreciation (in %) 5.28 5.28 5.28 5.28

Annexure-I

Asset-24 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreci ation (i n %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2014-15 (Rs. in lakh) 2015-16 (Rs. in lakh) 2016-17 (Rs. in lakh) 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Building 283.55 241.74 525.29 3.34 9.48 11.32 14.64 16.80 17.50 Transmission Line 44663.57 16153.40 60816.97 5.28 2361.82 2698.59 3113.34 3196.53 3204.64 Sub Station 515.94 368.57 884.51 5.28 27.28 34.24 41.19 43.96 46.70 PLCC 12.46 0.33 12.79 6.33 0.79 0.80 0.81 0.81 0.81 IT Equipment and software 0.00 0.00 0.00 5.28 0.00 0.00 0.00 0.00 0.00 Total 45475.52 16764.04 62239.57 2399.38 2744.95 3169.98 3258.10 3269.65 Average Gross Block (Rs. in lakh) 45544.67 52109.82 60196.07 61888.63 62115.26 Weighted Average Rate of Depreciation (in %) 5.27 5.27 5.27 5.26 5.26

Annexure-I

Asset-25 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreci ation (i n %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2015-16 (Rs. in lakh) 2016-17 (Rs. in lakh) 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Building 52.68 1.25 53.93 3.34 1.78 1.80 1.80 1.80 Transmission Line 36524.49 7851.83 44376.32 5.28 2018.15 2170.25 2286.55 2341.74 Sub Station 417.34 159.93 577.27 5.28 25.43 28.93 29.76 30.48 PLCC 43.37 1.66 45.03 6.33 2.78 2.81 2.83 2.85 Leasehold Land 0.00 0.00 0.00 3.34 0.00 0.00 0.00 0.00 IT Equipment and software 0.00 0.00 0.00 5.28 0.00 0.00 0.00 0.00 Total 37037.87 8014.67 45052.54 2048.13 2203.78 2320.94 2376.87 Average Gross Block (Rs. in lakh) 38801.25 41749.28 43968.03 45027.33 Weighted Average Rate of Depreciation (in %) 5.28 5.28 5.28 5.28

Annexure-I

Asset-26 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 78.24 0.00 78.24 0.00 0.00 0.00 Building 954.56 83.80 1038.36 3.34 33.27 34.67 Transmission Line 14972.08 1467.94 16440.02 5.28 820.89 859.65 Sub Station 2572.24 145.86 2718.10 5.28 138.52 142.38 PLCC 66.81 4.28 71.09 6.33 4.36 4.50 IT Equipment and software 141.08 3.98 145.06 5.28 7.55 7.66 Total 18785.01 1705.86 20490.87 1004.61 1048.85 Average Gross Block (Rs. in lakh) 19457.20 20310.13 Weighted Average Rate of Depreciation (in %) 5.16 5.16

Annexure-I

Asset-27 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 57.82 0.00 57.82 0.00 0.00 0.00 Building 742.03 80.13 822.16 3.34 25.73 27.07 Transmission Line 7204.00 1028.67 8232.67 5.28 397.06 424.22 Sub Station 1183.96 80.70 1264.66 5.28 64.49 66.62 PLCC 66.09 5.40 71.49 6.33 4.35 4.53 IT Equipment and software 134.86 2.41 137.27 5.28 7.17 7.23 Total 9388.76 1197.31 10586.07 498.80 529.66 Average Gross Block (Rs. in lakh) 9774.21 10372.86 Weighted Average Rate of Depreciation (in %) 5.10 5.11

Annexure-I

Asset-28 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 Building 0.00 0.00 0.00 3.34 0.00 0.00 Transmission Line 1224.48 774.85 1999.33 5.28 73.58 94.03 Sub Station 174.19 9.43 183.62 5.28 9.40 9.65 PLCC 30.21 0.81 31.02 6.33 1.93 1.95 IT Equipment and software 19.73 0.53 20.26 5.28 1.05 1.06 Total 1448.61 785.62 2234.23 85.96 106.70 Average Gross Block (Rs. in lakh) 1621.93 2014.74 Weighted Average Rate of Depreciation (in %) 5.30 5.30

Annexure-I

Asset-29 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 Building 0.00 0.00 0.00 3.34 0.00 0.00 Transmission Line 0.00 0.00 0.00 5.28 0.00 0.00 Sub Station 644.63 18.32 662.95 5.28 34.17 34.66 PLCC 0.00 0.00 0.00 6.33 0.00 0.00 IT Equipment and software 28.65 0.02 28.67 5.28 1.51 1.51 Total 673.27 18.34 691.61 35.69 36.17 Average Gross Block (Rs. in lakh) 675.87 685.04 Weighted Average Rate of Depreciation (in %) 5.28 5.28

Annexure-I

Asset-30 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-18 (Rs. in lakh) 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 Building 0.00 0.00 0.00 3.34 0.00 0.00 Transmission Line 0.00 0.00 0.00 5.28 0.00 0.00 Sub Station 715.51 11.61 727.12 5.28 37.92 38.22 PLCC 0.00 0.00 0.00 6.33 0.00 0.00 IT Equipment and software 12.93 0.01 12.94 5.28 0.68 0.68 Total 728.44 11.62 740.06 38.60 38.91 Average Gross Block (Rs. in lakh) 731.04 736.85 Weighted Average Rate of Depreciation (in %) 5.28 5.28

Annexure-I

Asset-31 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2018-19 (Rs. in lakh) Freehold Land 74.16 0.00 74.16 0.00 0.00 Building 1023.21 199.18 1222.38 3.34 37.50 Transmission Line 12435.16 854.77 13289.92 5.28 679.14 Sub Station 2368.51 342.09 2710.60 5.28 134.09 PLCC 84.22 2.62 86.84 6.33 5.41 IT Equipment and software 178.56 6.64 185.20 5.28 9.60 Total 16163.80 1405.30 17569.10 865.75 Average Gross Block (Rs. in lakh) 16866.45 Weighted Average Rate of Depreciation (in %) 5.13

Annexure-I

Asset-32 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 Building 23.77 45.44 69.21 3.34 1.55 Transmission Line 0.00 0.00 0.00 5.28 0.00 Sub Station 740.42 51.17 791.59 5.28 40.44 PLCC 0.00 0.00 0.00 6.33 0.00 IT Equipment and software 10.69 0.54 11.23 5.28 0.58 Total 774.88 97.15 872.03 42.58 Average Gross Block (Rs. in lakh) 823.46 Weighted Average Rate of Depreciation (in %) 5.17

Annexure-I

Asset-33 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 Building 2996.77 28.58 3025.35 3.34 100.57 Transmission Line 62836.67 4627.43 67464.10 5.28 3439.94 Sub Station 5071.34 810.34 5881.68 5.28 289.16 PLCC 193.91 3.68 197.59 6.33 12.39 IT Equipment and software 110.86 2.67 113.53 5.28 5.92 Total 71209.55 5472.70 76682.25 3847.98 Average Gross Block (Rs. in lakh) 73945.90 Weighted Average Rate of Depreciation (in %) 5.20

Annexure-I

Asset-34 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 Building 0.00 0.00 0.00 3.34 0.00 Transmission Line 1147.94 14.93 1162.87 5.28 61.01 Sub Station 321.98 111.81 433.79 5.28 19.95 PLCC 11.30 1.79 13.09 6.33 0.77 IT Equipment and software 18.31 0.20 18.51 5.28 0.97 Total 1499.53 128.73 1628.26 82.70 Average Gross Block (Rs. in lakh) 1563.89 Weighted Average Rate of Depreciation (in %) 5.29

Annexure-I

Asset-35 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2018-19 (Rs. in lakh) Freehold Land 342.97 0.00 342.97 0.00 0.00 Building 16.79 0.20 16.99 3.34 0.56 Transmission Line 1342.12 33.47 1375.59 5.28 71.75 Sub Station 730.03 19.01 749.04 5.28 39.05 PLCC 11.10 0.13 11.23 6.33 0.71 IT Equipment and software 49.02 0.62 49.64 5.28 2.60 Total 2492.02 53.43 2545.45 114.67 Average Gross Block (Rs. in lakh) 2518.74 Weighted Average Rate of Depreciation (in %) 4.55

Annexure-I

Asset-36 2014-19 Admitted Capital Cost as on COD (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2019 (Rs. in lakh) Rate of Depreciation (in %) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2018-19 (Rs. in lakh) Freehold Land 0.00 0.00 0.00 0.00 0.00 Building 0.00 0.00 0.00 3.34 0.00 Transmission Line 0.00 0.00 0.00 5.28 0.00 Sub Station 1136.25 59.63 1195.88 5.28 61.57 PLCC 0.00 0.00 0.00 6.33 0.00 IT Equipment and software 0.12 5.27 5.39 5.28 0.15 Total 1136.37 64.90 1201.27 61.71 Average Gross Block (Rs. in lakh) 1168.82 Weighted Average Rate of Depreciation (in %) 5.28

Annexure-II

Combined Asset-1 to 36 (Except Asset-35) 2019-24 Admitted Capital Cost as on 1.4.2019 (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2024 (Rs. in lakh) Rate of Depreci ation (i n %) Annual Depreciation as per Regulations Capital Expenditure as on 1.4.2019 2019-24 2019-20 (Rs. in lakh) 2020-21 (Rs. in lakh) 2021-22 (Rs. in lakh) 2022-23 (Rs. in lakh) 2023-24 (Rs. in lakh) Freehold Land 852.59 156.39 1008.98 0.00 0.00 0.00 0.00 0.00 0.00 Building 9242.40 751.16 9993.56 3.34 318.83 331.38 333.78 333.78 333.78 Transmission Line 235021.03 8776.00 243797.02 5.28 12530.52 12762.21 12872.48 12872.48 12872.48 Sub Station 45548.70 1933.14 47481.84 5.28 2451.24 2502.28 2507.04 2507.04 2507.04 PLCC 1247.79 70.56 1318.36 6.33 80.85 83.08 83.45 83.45 83.45 Leasehold Land 108.99 0.00 108.99 3.34 3.64 3.64 3.64 3.64 3.64 IT Equipment and software 1627.21 57.64 1684.85 15.00 247.42 251.75 252.73 252.73 252.73 Total 293648.71 11744.88 305393.59 15632.51 15934.33 16053.13 16053.13 16053.13 Average Gross Block (Rs. in lakh) 297179.77 303052.22 305393.59 305393.59 305393.59 Weighted Average Rate of Depreciation (in %) 5.26 5.26 5.26 5.26 5.26

Annexure-II

Asset-35 2019-24 Admitted Capital Cost as on 1.4.2019 (Rs. in lakh) ACE (Rs. in lakh) Admitted Capital Cost as on 31.3.2024 (Rs. in lakh) Rate of Depreci ation (i n %) Annual Depreciation as per Regulations Capital Expenditure as on 1.4.2019 2019-24 2019-20 (Rs. in lakh) 2020-21 (Rs. in lakh) 2021-22 (Rs. in lakh) 2022-23 (Rs. in lakh) 2023-24 (Rs. in lakh) Freehold Land 342.97 0.00 342.97 0.00 0.00 0.00 0.00 0.00 0.00 Building 16.99 0.10 17.09 3.34 0.57 0.57 0.57 0.57 0.57 Transmission Line 1375.59 145.70 1521.29 5.28 76.48 80.32 80.32 80.32 80.32 Sub Station 749.04 85.24 834.28 5.28 40.17 42.42 44.05 44.05 44.05 PLCC 11.23 0.09 11.32 6.33 0.71 0.72 0.72 0.72 0.72 Leasehold Land 0.00 0.00 0.00 3.34 0.00 0.00 0.00 0.00 0.00 IT Equipment and software 49.64 4.27 53.91 15.00 7.47 7.79 8.09 8.09 8.09 Total 2545.45 235.41 2780.86 125.40 131.82 133.75 133.75 133.75 Average Gross Block (Rs. in lakh) 2630.28 2747.98 2780.86 2780.86 2780.86 Weighted Average Rate of Depreciation (in %) 4.77 4.80 4.81 4.81 4.81

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