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Power Grid Corporation of India Limited

Central Electricity Regulatory Commission
Jan 24, 2023
Judgment
Subsequent
References
CaseIQ
Case Information
CITATION CODES
citation codes
CASE NO.

670/TT/2020

JUDGES

I.S. Jha

Arun Goyal

P.K. Singh, Members

ACTS

SECTION 64 ELECTRICITY ACT 2003

INCOME TAX ACT 1961

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

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Smart Summary (Beta)

Structured Summary of the Commission's Order in Petition No. 670/TT/2020

Factual and Procedural Background

The Petitioner, Power Grid Corporation of India Limited (POWERGRID), filed a petition seeking (i) truing up of transmission tariff for a set of transmission assets (the "Eastern Region Strengthening Scheme XII") for the period from Commercial Operation Date (COD) to 31.3.2019 under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 ("2014 Tariff Regulations"); and (ii) determination of transmission tariff for the period 1.4.2019 to 31.3.2024 under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 ("2019 Tariff Regulations").

The petition covered twenty-one assets (Asset‑I to Asset‑XXI) with detailed descriptions (transformer replacements, bus/reactor installations, GIS line bays, shifting and re‑use of ICTs, spare units, etc.). POWERGRID sought approval of trued-up Annual Fixed Charges (AFC) for 2014–2019 and tariff for 2019–2024, approval of completion cost and Additional Capitalisation (ACE), permission to recover multiple specific components (e.g., changes in Return on Equity due to tax changes, GST if levied in future, licence/RLDC fees separately), allowance for floating rate interest adjustments, treatment of initial spares and capital spares, and reimbursement of petition filing/publishing expenses.

Procedurally: the petition was served on beneficiaries (Respondents). Respondent No.1, Bihar State Power (Holding) Company Limited (BSPHCL), filed a reply raising multiple issues; POWERGRID filed a rejoinder. Hearing took place on 6.7.2021 via video conference, the matter was reserved, and the Commission issued this order disposing of the petition (Petition No. 670/TT/2020).

Legal Issues Presented

  1. Whether and to what extent the Annual Fixed Charges (AFC) for each transmission asset should be trued-up for the 2014–2019 tariff block under the 2014 Tariff Regulations, taking into account admitted capital cost, ACE, IDC/IEDC, initial spares, decapitalisation/recapitalisation, depreciation, interest on loan, RoE and Interest on Working Capital.
  2. Determination of the tariff (AFC) for the combined asset (all assets treated as a single combined asset) for the 2019–2024 tariff period under the 2019 Tariff Regulations, including: effective COD of combined asset, weighted average life (WAL), capital cost as on 1.4.2019, allowable ACE during 2019–2024, depreciation schedule, interest on loan, RoE (grossing‑up for tax), O&M norms, and Interest on Working Capital.
  3. Whether cost overruns and time overruns for individual assets are justified and should be condoned or disallowed (including whether time overrun caused by supplier/manufacturer is condonable).
  4. Whether claims such as carrying cost for decapitalised‑then‑recapitalised assets, additional initial spares beyond norms, GST on transmission, licence fee and RLDC charges, security expenses and reimbursement of filing/publication expenses should be allowed and on what basis.

Arguments of the Parties

Petitioner (POWERGRID)

  • Filed for truing-up of tariff for 2014–2019 and determination for 2019–2024 for the listed assets, seeking approval of completion cost and ACE incurred and projected, and permission to recover various components (tax impacts on RoE, licence/RLDC fees, floating rate interest adjustments, GST if levied in future, etc.).
  • Submitted that the petition is based on actual Additional Capital Expenditure (ACE) during 2014–2019 and on changes in MAT rates and floating interest rates during 2014–2019; therefore depreciation and O&M rates were set in 2014–2019 and need not be separately stated in the petition for truing-up.
  • Explained reasons for cost variation (change in quantities, site conditions, extra cable distances, switchyard erection variations) and provided itemised justifications and auditor certificates for capital costs, IDC and IEDC.
  • Claimed initial spares on the basis of estimated completion cost and sought to apply the APTEL judgment (Appeal No. 74 of 2017) to allow initial spares on overall project basis for 2019–2024 period; for 2014–2019 period allowed on individual asset basis as assets achieved COD in that block.
  • Claimed carrying cost for a re‑capitalised 315 MVA ICT at Purnea for the decapitalisation‑to‑recapitalisation period and provided computation; sought projected ACE for 2019–2024 in respect of undischarged liabilities and deferred works.
  • Requested reimbursement of petition filing fee and publication expenses as per Regulation 70(1) of 2019 Tariff Regulations, and permission to bill licence fee and RLDC charges separately as per Regulations 70(3) and (4).

Respondent (BSPHCL — Respondent No.1)

  • Raised objections on multiple fronts: cost over‑run, application of MAT rates and grossing‑up of RoE, alleged excess in depreciation claims, O&M expenses, reimbursement of filing fees, treatment of floating rate of interest, treatment of GST, and allocation/sharing of transmission charges (allocation to BSPHCL for certain periods).
  • Specifically contended that the Petitioner’s cost variation explanations were vague and insufficiently substantiated; asserted that cost over‑run claimed is large and requires clear substantiation tied to site conditions and estimates.
  • Argued that the 2014 Tariff Regulations do not permit change in interest rate due to floating rate of interest (i.e., contesting the Petitioner’s contention on floating interest adjustments).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
APTEL Judgment dated 14.9.2019 in Appeal No. 74 of 2017 Initial spares to be allowed on the basis of ceiling limits on overall project cost (not restricted asset‑wise at truing up) The Commission applied this principle to allow initial spares for the 2019–2024 tariff period on an overall combined project (combined asset) basis while allowing initial spares for the 2014–2019 period on an individual asset basis (since those assets achieved COD during that block).
Order dated 22.8.2016 in Petition No. 69/TT/2016 (CERC) Approval of transmission tariff from COD to 31.3.2019 for Assets-I to IX; direction to restrict completion cost to apportioned FR cost where justification for overrun not provided and to review at truing up Commission relied on that order's approvals of CODs and its earlier observation restricting costs where justification lacking; at truing up it examined the Petitioner’s justifications and approvals (and allowed cost variations where RCE approvals existed).
Order dated 19.9.2017 in Petition No. 233/TT/2016 (CERC) Approval of transmission tariff from COD to 31.3.2019 for Assets X to XIV and recognition of RCE‑I Used to record prior allowance of tariffs for those assets and to note that completion costs for Asset‑X to Asset‑XIV were within RCE‑I.
Order dated 30.12.2019 in Petition No. 277/TT/2018 (CERC) Approval of transmission tariff from COD to 31.3.2019 for Assets XV to XX; direction to submit explanation of capital cost variation at truing up The Commission noted that RCE‑I and RCE‑II had been considered in that order and, at truing up, observed that completion costs for Asset‑XV to Asset‑XX were within RCE‑II as approved by the Petitioner’s Competent Authority.
Order dated 23.3.2016 in Petition No. 232/TT/2015 (CERC) Approval of transmission tariff from COD to 31.3.2019 for Asset‑XXI Commission relied on that order for the prior allowance of tariff for Asset‑XXI up to 31.3.2019 and for capital cost/ACE admitted earlier.
Order dated 5.3.2021 in Petition No. 290/TT/2020 (CERC) Treatment of decapitalisation: assets not in use during decapitalisation‑to‑recapitalisation period to be excluded; carrying cost claim subject to prudence check The Commission applied the principle by treating the 315 MVA ICT at Purnea as de‑capitalised from the earlier date and re‑capitalised later; it refused to allow carrying cost in this instant petition because there is no specific provision in 2014 Tariff Regulations to allow it (and referred to the earlier order's approach).
Order dated 9.5.2020 in Petition No. 19/TT/2020 (CERC) Scope of truing up cannot be used to re‑apportion capital cost (e.g., creating a new IT Equipment head) where earlier periods did not claim such apportionment; therefore depreciation for IT equipment in truing up limited to what was previously admitted The Commission applied this precedent to reject the Petitioner’s apportionment of capital cost to IT equipment at truing up for 2014–2019 and retained the earlier treatment (depreciation @5.28% for IT equipment as part of substation) for 2014–2019.
Order dated 27.4.2020 in Petition No. 274/TT/2019 (CERC) Effective tax/MAT rates for the Petitioner for specified years to be used for grossing‑up RoE The Commission adopted the effective MAT rates as determined in that order to compute the grossed‑up RoE for the truing up period (2014–2019) and applied them to compute pre‑tax RoE percentages.
Order dated 28.5.2021 in Petition No. 476/TT/2019 (CERC) Previous Commission findings on issues such as MAT rate and RoE (indicating finality where not challenged) The Commission referred to earlier rejections of similar contentions by BSPHCL in other petitions (including this order) and treated those findings as attaining finality where BSPHCL had not challenged them; accordingly, similar pleas were rejected in this petition.
Order dated 24.1.2021 in Petition No. 126/TT/2020 (CERC) PLCC treatment: a finding that separate O&M for PLCC under Regulation 35(4) could not be allowed where PLCC treated as part of substation The Commission applied that approach here and disallowed a separate O&M claim for PLCC on the combined asset, treating PLCC as part of substation O&M norms.
Order dated 3.8.2021 in Petition No. 260/MP/2020 (CERC) Approval of security expenses from 1.4.2019 to 31.3.2024 Commission noted that security expenses for 2019–2024 were approved in that order; consequently the Petitioner’s request to file a separate petition for security expenses in this petition became infructuous.
Earlier orders dated 30.8.2012 and 9.5.2013 (Petition Nos. 343/2010 and 147/TT/2011) Earlier period tariff determinations and truing up references (context for apportionment/prior claims) The Commission relied on the procedural history that the Petitioner had not earlier apportioned costs to IT Equipment in those earlier petitions and used that as support for not allowing such reapportionment at truing up for 2014–2019 (citing Petition No. 19/TT/2020 discussion).

Court's Reasoning and Analysis

Overview of legal approach:

  • The Commission performed a prudence check of the Petitioner’s submissions and documentary evidence (auditor certificates, COD notifications, CEA and RLDC certificates, management/BoD approvals including RCEs) and applied the relevant provisions of the 2014 Tariff Regulations for truing up 2014–2019 and the 2019 Tariff Regulations for 2019–2024.
  • The analysis proceeded item‑by‑item: capital cost (as on COD and 31.3.2019), cost over‑run and RCE treatment, time over‑run (condonation or not), IDC and IEDC, initial spares, decapitalisation/recapitalisation, carrying cost, ACE (allowed items and years), debt‑equity, depreciation, interest on loan, RoE (grossing up for tax), O&M norms, Interest on Working Capital, effective COD for the combined asset (E‑COD), Weighted Average Life (WAL), and computation of AFCs for both periods.

Key specific findings and the legal reasoning behind them (by topic):

Cost Over‑run and RCEs

The Commission noted its earlier caution in the order dated 22.8.2016 where cost of certain assets was restricted to apportioned FR cost pending justification. At truing up the Petitioner provided explanations and documentary approvals (RCE‑I and RCE‑II approved by the Competent Authority). The Commission examined itemised variations (e.g., increased quantity of switchgear, longer control cable runs, civil/erection splits) and found that completion costs for many assets were within approved RCEs. Where the Petitioner had provided appropriate RCEs and approvals, cost variations were allowed; overall the project cost decreased compared to the RCE‑I apportioned cost and this variation (a reduction) was accepted because RCE‑II was duly approved by the Petitioner’s CMD.

Time Over‑run

The Commission treated time over‑run as per the 2014 Tariff Regulations (Regulation 12 on controllable/uncontrollable factors) and the 2019 Tariff Regulations (Regulation 22). It found that the delay in Asset‑IV’s commissioning was due to supplier/manufacturer failure (failure in type test at GE works and subsequent procurement arrangements). Such delays attributable to contractor/supplier fall within "controllable factors" (Regulation 12(1)(b) and (c) of 2014 Regulations and Regulation 22(1)(b) of 2019 Regulations); accordingly, the Commission was not inclined to condone the time over‑run for Asset‑IV. For other assets, prior orders had already dealt with time‑overrun issues and the Commission relied on those prior dispositions.

IDC and IEDC

Allowable IDC was determined on cash and accrued basis after examining Form‑9C, IDC computation sheets and auditor certificates. Un‑discharged IDC as on COD was treated as ACE in the year of discharge. IEDC claimed was examined against Form‑12A and Auditor’s Certificate; the Commission disallowed IEDC partly where time over‑run caused disallowance and admitted the remainder as ACE after prudence checks.

Initial Spares

Applying the APTEL judgment (Appeal No. 74 of 2017), the Commission allowed initial spares for the 2019–2024 period on the basis of the overall combined project cost (combined asset) while for the 2014–2019 period the initial spares were allowed asset‑wise because the assets were commissioned in that block. The Commission computed permissible initial spares against plant & machinery cost as on cut‑off and applied the applicable ceiling percentages; additional initial spares for the combined asset were allowed and apportioned as on 1.4.2019 and as ACE in 2019–20 where applicable.

Decapitalisation and Re‑capitalisation (including carrying cost)

The Commission reviewed the de‑capitalisation (e.g., the 315 MVA ICT at Purnea) as per earlier order (Petition No. 290/TT/2020) and accepted the dates of decapitalisation and recapitalisation submitted. The Petitioner’s claim for carrying cost for the decapitalisation‑to‑recapitalisation period (Rs. 17.28 lakh claimed) was disallowed because there is no specific provision in the 2014 Tariff Regulations to allow carrying cost; the Commission therefore refused that item.

ACE (Additional Capitalisation)

The Petitioner’s ACE up to 31.3.2019 (and ACE projected for 2019–2024) were examined against the relevant provisions (Regulation 14 of 2014 Regulations for ACE up to cut‑off; Regulations 24 and 25 of 2019 Regulations for ACE within and after cut‑off). The Commission allowed ACE that fell within the permitted categories (undischarged liabilities, works deferred, procurement of capital spares within original scope, etc.) subject to prudence and subject to true‑up.

Depreciation and IT Equipment apportionment

The Commission declined the Petitioner’s attempt to re‑apportion capital cost at truing up by isolating IT equipment and claiming higher depreciation (15%) for 2014–2019. Citing prior reasoning (order dated 9.5.2020 in Petition No. 19/TT/2020), the Commission held that truing up cannot be used to re‑apportion admitted capital cost for prior periods, and therefore retained the earlier treatment (IT equipment depreciation considered at 5.28% as part of substation) for 2014–2019. For the 2019–2024 block, IT equipment is considered separately and depreciation at 15% is allowed going forward on remaining depreciable value, in line with 2019 Regulations.

Debt‑Equity, Interest on Loan and RoE

The Commission applied the debt‑equity ratio rules (70:30 normative rule where applicable). For the 2014–2019 truing up the Commission accepted the Petitioner’s actual loan portfolio and used weighted average rates of interest for IoL calculations in accordance with Regulation 26 of 2014 Regulations. For RoE, the Commission grossed up the base RoE using the effective MAT rates determined in its earlier order dated 27.4.2020 (Petition No. 274/TT/2019) and applied those grossed‑up pre‑tax RoE rates in computing RoE for the truing up period.

O&M Expenses and IWC

O&M expenses were determined per the 2014 Tariff Regulations for the truing up period (where the Petitioner had not claimed O&M for many assets the Commission did not allow O&M). For 2019–2024 the Commission applied the normative O&M norms in Regulation 35(3)(a) of the 2019 Regulations (per bay, per MVA, per km etc.) to derive combined asset O&M. PLCC separate O&M @2% was disallowed following prior Commission treatment that PLCC cannot be allowed separate O&M where treated as part of substation. Interest on Working Capital (IWC) was computed as per the respective regulations: for 2014–2019 in line with Regulation 28 of 2014 Regulations and for 2019–2024 under Regulation 34 of 2019 Regulations (including normative components — receivables, maintenance spares and O&M for one month — and normative interest rate benchmarks such as SBI MCLR + 350 bps as Bank Rate proxy).

2019–2024: Combined Asset approach, E‑COD and WAL

The Petitioner combined all assets into a single combined asset for 2019–2024 (per proviso (i) of Regulation 8(1) of 2019 Regulations). The Commission computed an Effective COD (E‑COD) for the combined asset by weighting admitted capital cost and days from last COD and arrived at an E‑COD of 21.2.2017; the lapsed life of the combined project on 1.4.2019 is two years. The Commission then computed Weighted Average Life (WAL) using element‑wise admitted capital costs and the lives stipulated by the 2019 Tariff Regulations; WAL rounded to 25 years and remaining useful life as on 31.3.2019 was determined to be 23 years. Depreciation, IoL, RoE, O&M and IWC for the combined asset were computed according to the 2019 Tariff Regulations and the admitted capital cost as on 31.3.2019 plus ACE allowed for 2019–2024.

Other procedural / interlocutory matters

The Commission accepted the Petitioner’s entitlement to recover filing fees and publication expenses directly from beneficiaries on a pro‑rata basis under Regulation 70(1) of 2019 Regulations. It held the Petitioner entitled to recover licence fee and RLDC fees as per Regulations 70(3) and (4). The Commission found the Petitioner’s prayer to recover GST on transmission presently premature (since GST is not levied on transmission at present). The Petitioner’s request to file a separate petition for security expenses became infructuous because security expenses for 2019–2024 had been approved by a separate order (Petition No. 260/MP/2020).

Holding and Implications

DISPOSED OF — The Commission disposed of Petition No. 670/TT/2020 as follows (core rulings and direct consequences):

  • The Commission approved trued‑up Annual Fixed Charges (AFC) for each asset for the 2014–2019 tariff period after carrying out prudence checks. The order records the approved AFCs by asset and year (2015–2019 pro‑rata years where applicable) in detailed schedules (these numeric approvals form part of the order's tables and annexures).
  • The Commission accepted and admitted the Petitioner’s capital cost as on 31.3.2019 (aggregate admitted capital cost of the transmission assets: Rs. 46,066.12 lakh) and allowed the capital cost of the combined asset as on 1.4.2019 after adjusting initial spares per APTEL (combined admitted capital cost as on 1.4.2019: Rs. 46,338.85 lakh).
  • The Commission approved the combined asset approach for 2019–2024, worked out Effective COD (21.2.2017), determined WAL (25 years) and remaining useful life (23 years as on 31.3.2019), and approved Annual Fixed Charges for the combined asset for each year of 2019–2024 in accordance with the 2019 Tariff Regulations (tabled in the order; combined AFCs: e.g., 2019–20: Rs. 9,863.31 lakh; 2020–21: Rs. 9,919.41 lakh; etc.).
  • Specific allowances and disallowances: IDC/IEDC and ACE were allowed to the extent supported by auditor certificates and in accordance with the Regulations; initial spares were allowed for the 2014–2019 period asset‑wise and for 2019–2024 on combined basis per APTEL; carrying cost for the decapitalised‑then‑recapitalised ICT at Purnea (Rs. 17.28 lakh) was disallowed; time over‑run for Asset‑IV was not condoned (delay attributable to supplier falls within controllable factors); O&M and IWC were determined as per applicable norms/regulations.
  • Reimbursement and procedural outcomes: the Petitioner is entitled to recover filing fee and publication expenses directly from beneficiaries per Regulation 70(1); entitled to recover licence fee and RLDC charges per Regulations 70(3)–(4); the GST claim is premature and not allowed at present; security expenses claim in this petition became infructuous because security expenses for 2019–2024 were approved separately (Petition No. 260/MP/2020).
  • No new legal precedent beyond application of existing regulatory framework and cited judicial/Quasi‑judicial decisions was established; the order applies prior Commission decisions and the APTEL judgment to the facts of this petition and sets out the admitted capital costs, admitted ACE and computed AFCs for both tariff periods subject to truing‑up where indicated.

Direct effect on the parties: the Petitioner’s transmission tariff claims were largely admitted in trued‑up and forward (2019–2024) forms according to the computations in the order, with specific disallowances (notably carrying cost and time over‑run condonation in respect of Asset‑IV). Reimbursement entitlements (filing/publication fees, licence/RLDC fees) were granted as indicated. BSPHCL’s repeated contentions on MAT and RoE that were previously rejected were again rejected insofar as identical and already finally decided by the Commission and not challenged by BSPHCL.

This summary is restricted to the materials, findings and citations expressly contained in the provided order text. No material outside the provided opinion has been relied upon or inferred.

Show all summary ...

1. The Petitioner, Power Grid Corporation of India Limited, has filed the instant petition for truing up of transmission tariff for the period from 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 transmission assets under “Eastern Region Strengthening Scheme XII” in Eastern Region (hereinafter referred to as the “transmission project”).

Asset-I: Replacement of existing 100 MVA, 220/132 ICT with 01 No. 1X160 MVA ICT at 220/132 kV Birpara Sub-station alongwith associated bays at Birpara Sub-station.

Asset-II: Replacement of existing 100 MVA, 220/132 ICT with 1x160 MVA, 220/132 kV ICT at 220/132 kV Siliguri Sub-station along with necessary bay eqpt/protection system at Siliguri Sub-station.

Asset-III: Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Patna Sub-station.

Asset-IV: Replacement of 315 MVA 400/220 kV ICT II with 500 MVA 400/220 kV ICT at Patna Sub-station.

Asset-V: Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Pusauli Sub-station.

Asset-VI: Replacement of 315 MVA 400/220 kV ICT II with 500 MVA 400/220 kV ICT at Purnea.

Asset-VII: Replacement of 1x 100 MVA (3) ICT with 1x160 MVA220/132 kV ICT at Purnea Sub-station.

Asset-VIII: 01 No of 1X125 MVAR Bus Reactor at Baripada Sub-station with GIS bay.

Asset-IX: 01 Nos of 1X500 MVA, 400/220/132 kV ICT at 400/220/132 kV Baripada Sub-station alongwith GIS bays.

Asset-X: Conversion of 50 MVAR Line Reactor (presently installed at Jeerat end of 400 kV Baharampur - Jeerat TL) as Bus Raeactor in parallel with existing Bus Reactor at Jeerat.

Asset-XI: Installation of 01 no. 125 MVAR Bus Reactor at Maithon Sub-station with GIS bays.

Asset-XII: 02 nos. 220 kV GIS Line Bays at Kishanganj Sub-station.

Asset-XIII: 02 nos. 220 kV GIS Line Bays at Kishanganj Sub-station.

Asset-XIV: Modification of 132 kV Bus arrangement at 220/132 kV Siliguri Sub-station with GIS bays.

Asset-XV: Shifting of 1x315 MVA, 400/220 kV ICT from any suitable location (after replacement by 1x500 MVA ICT) and install it at Jamshedpur 400/220 kV Sub-station as 3 ICT along-with associated bays.

Asset-XVI: Modification of 132 kV Bus arrangement with GIS bays at 220/132 kV Purnea Sub-station.

Asset-XVII: Spare 1 no unit of 765 kV,110 MVAR Single Phase Reactor to be stationed at Sasaram.

Asset-XVIII: 3 500 MVA, 400/220 kV ICT at Patna(POWERGRID) Substation along-with associated bay.

Asset-XIX: 01 No 500 MVA Single phase spare unit of 765/400 kV ICT at Angul Sub-station.

Asset-XX: 01 No 500 MVA Single phase spare unit of 765/400 kV ICT at Sundergrah Sub-station.

Asset-XXI: Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Purnea Sub-station.

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

“1) Approve the trued up Transmission Tariff for 2014-2019 block and transmission tariff for 2019-2024 block for the assets covered under this petition.

2) Approve the Completion cost and additional capitalization incurred during 2014-2019 & 2019-2024.

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.

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 2019-2024 period, if any, from the respondents.

7) Allow the petitioner to claimed initial spares project as 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 11.6 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 Investment Approval (IA) was accorded by the Board of Directors (BoD) of the Petitioner company vide the Memorandum No. C/CP/ERSS-XII TPS dated 19.5.2014 at an estimated cost of Rs. 52229 lakh, which included IDC of Rs. 3324 lakh.

(b) The Revised Cost Estimate (RCE-I) of the transmission project was accorded on 24.3.2017 for Rs. 55018 lakh including an IDC of Rs. 1700 lakh based on December, 2016 price level (communicated vide Memorandum No. C/CP/PA1617-03-0AERCE019 dated 30.3.2017).

(c) Further, the Revised Cost Estimate (RCE-II) of the transmission project was accorded on 14.3.2019 for Rs. 54636 lakh including an IDC of Rs. 2403 lakh based on October, 2018 price level (communicated vide Memorandum No. C/CP/PA1819-12-0AT-RTE018 dated 14.3.2019).

(d) The scope of work covered under the transmission project is as follows:

(i) Reactive Compensation at 400 kV Sub-stations:

(a) Installation of 1X125 MVAR Bus Reactor at Baripada with GIS bay.

(b) Installation of 1X125 MVAR Bus Reactor at Maithon with GIS bay.

(c) Conversion of 50 MVAR Line Reactor presently installed at Jeerat end of Baharampur - Jeerat 400 kV line as Bus Reactor in parallel with existing Bus Reactor at Jeerat.

(ii) Augmentation of Transformation Capacity:

(a) Addition of 1x500 MVA, 400/220 kV ICT with GIS bays at Baripada 400/220/132 kV Sub-station of POWERGRID

(b)) Replacement of 2X315 MVA, 400/220 kV ICTs with 2X500 MVA, 400/220 kV ICTs at Purnea

(c) Replacement of 2X315 MVA, 400/220 kV ICTs with 2X500 MVA, 400/220 kV ICTs at Patna

(d) Replacement of 2X315 MVA, 400/220 kV ICTs with 2X500 MVA, 400/220 kV ICTs at Pusauli

(e) Shifting of 1X315 MVA, 400/220 kV ICT from any suitable location (after replacement by 1x500 MVA ICT) and install it at Jamshedpur 400/220 kV Sub-station as 3 ICT alongwith associated bays.

(f) Shifting of 1X315 MVA, 400/220 kV ICT from any suitable location (after replacement by 1x500 MVA ICT) and install it at Farakka 400/220 kV Sub-station as 2 ICT alongwith associated bays.

(g) Out of the 6 nos. 315 MVA ICTs released from Purnea, Patna & Pusauli Sub-station, one each would be kept as spare at Patna and Pusauli Sub-station, one each would be diverted to Jamshedpur and Farakka Sub-station and remaining 2x315 MVA, 400/220 kV ICTs would be utilized as Regional Spare.

(h) Replacement of 1X100 MVA (3 ICT), 220/132 kV ICTs with 1X160 MVA, 220/132 kV ICT at Purnea 220/132 kV Sub-station of the Petitioner, along with necessary bay equipment/protection system.

(i) Replacement of existing 100 MVA, 220/132 kV ICTs with 1X160 MVA, 220/132 kV ICT at Siliguri 220/132 kV Sub-station of the Petitioner, along with necessary bay equipment/protection system

(j) Replacement of existing 100 MVA, 220/132kV ICTs with 1X160 MVA, 220/132 kV ICT at Birpara 220/132 kV Sub-station of the Petitioner, along with necessary bay equipment/protection system.

(k) 100 MVA ICTs thus released from Purnea, Siliguri and Birpara shall be kept in the regional pool of spare ICTs

(iii) 2 nos. 500 MVA Single phase spare unit of 765/400 kV ICT for Eastern Region Procurement of two 500 MVA, Single phase unit of 765/400 kV ICT for Eastern Region to be stationed at Angul and Jharsuguda Substation

(iv) 1 no. Spare unit of 765 kV, 110 MVAR Single Phase Reactor to be stationed at Sasaram.

(v) Modification of 132 kV bus arrangement including switchgear to Double Main Scheme at 220/132 kV Siliguri and Purnea Sub-station with GIS bays

(vi) Construction of 4 nos. 220 kV line bays at Kishanganj Sub-station of PGCIL

(e) As per IA dated 19.5.2014, the instant transmission assets were scheduled to be put into commercial operation within 30 months from the date of IA. Therefore, the scheduled date of commercial operation (SCOD) of the transmission assets was 19.11.2016.

(f) The details of transmission assets under the transmission project are as follows:

Asset Nomenclature in previous Petition Description Asset Nomenclature in current Petition COD Commission's order dated 22.8.2016 in Petition No.: 69/TT/2016 Asset-I Replacement of existing 100 MVA, 220/132 ICT with 01 No. 1X160 MVA ICT at 220/132kV Birpara Substation alongwith associated bays at Birpara Substation Asset-I 1.1.2016 Asset-II Replacement of existing 100 MVA, 220/132 ICT with 1x160 MVA, 220/132 kV ICT at 220/132 kV Siliguri Sub-station along with necessary bay eqpt/protection system at Siliguri Sub-station Asset-II 2.2.2016 Asset-III Replacement of 315 MVA 400/220Kv ICT I with 500 MVA 400/220 kV ICT at Patna Sub-station Asset-III 24.9.2016 Asset-IV Replacement of 315 MVA 400/220kV ICT II with 500 MVA 400/220 kV ICT at Patna Sub-station Asset-IV 17.2.2019 Asset-V Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Pusauli Sub-station Asset-V 3.4.2016 Asset-VII Replacement of 315 MVA 400/220 kV ICT II with 500 MVA 400/220 kV ICT at Purnea Asset-VI 30.9.2016 Asset-VIII Replacement of 1x 100 MVA (3rd) ICT with 1x160 MVA220/132 kV ICT at Purnea Sub-station Asset-VII 29.2.2016 Asset-IX 01 No of 1X125 MVAR Bus Reactor at Baripada Substation with GIS bay Asset-VIII 2.10.2016 Asset-X 01 Nos of 1X500 MVA, 400/220/132 kV ICT at 400/220/132 kV Baripada S/S alongwith GIS bays Asset-IX 2.10.2016 Commission's order dated 19.9.2017 in Petition No.: 233/TT/2016 Asset-I Conversion of 50 MVAR Line Reactor (presently installed at Jeerat end of 400kV Baharampur - Jeerat TL) as Bus Raeactor in parallel with existing Bus Reactor at Jeerat Asset-X 29.8.2016 Asset-II Installation of 01 no. 125 MVAR Bus Reactor at Maithon Sub-station with GIS bays Asset-XI 6.10.2016 Asset-III 02 nos 220kV GIS Line Bays at Kishanganj Substation Asset-XII* 20.10.2016 02 nos 220kV GIS Line Bays at Kishanganj Substation Asset-XIII 10.3.2017 Asset-IV(a) Modification of 132kV Bus arrangement at 220/132 kV Siliguri Sub-station with GIS bays Asset-XIV 30.11.2016 Commission's order dated 30.12.2019 in Petition No.: 277/TT/2018 Asset-I Shifting of 1x315 MVA, 400/220kV ICT from any suitable location (after replacement by 1x500 MVA ICT) and install it at Jamshedpur 400/220kV Substation as 3rd ICT along-with associated bays Asset-XV 16.12.2017 Asset-II Modification of 132kV Bus arrangement with GIS bays at 220/132kV Purnea Sub-station Asset-XVI 12.3.2018 Asset-III Spare 1 no unit of 765kV,110 MVAR Single Phase Reactor to be stationed at Sasaram Asset-XVII 29.3.2018 Asset-IV 3rd 500 MVA, 400/220kV ICT at Patna(POWERGRID) Sub-station along-with associated bay Asset-XVIII 14.2.2018 Asset-V 01 Nos 500 MVA Single phase spare unit of 765/400 kV ICT at Angul Sub-station Asset-XIX 25.9.2017 Asset-VI 01 Nos 500 MVA Single phase spare unit of 765/400 kV ICT at Sundergrah Sub-station Asset-XX 30.9.2018 Commission's order dated 23.3.2016 in Petition No.: 232/TT/2015 Asset Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Purnea Sub-station Asset-XXI 13.7.2015

*The Petitioner has claimed the transmission tariff from COD to 9.3.2017 shall be borne by BSPHCL and after that capital cost of Asset-XII is merged With Asset-XIII.

(g) The Petitioner has submitted that replacement of 315 MVA 400/220 kV ICT II with 500 MVA 400/220 kV ICT at Pusauli Sub-station has been made. 500 MVA 400/220 kV ICT at Pusauli Sub-station was put into commercial operation on 18.1.2020 and the transmission tariff will be claimed as per the 2019 Tariff Regulations.

(h) The Petiitoner has submitted that the petition regarding shifting of 1X315 MVA ICT and its installation at Farakka alongwith associated bays will be filed for tariff determination after its commissioning as per the 2019 Tariff Regulations.

(i) 315 MVA ICT at Purnea Sub-station (which was previously commissioned under project Transmission System associated with TALA HEP East-North Inter connector and Northern Region Transmission System, an inter-regional transmission asset between Northern Region and Eastern Region) has been decapitalized from its original project. The same was previously covered under Petition No. 290/TT/2020. Now, the 315 MVA ICT is recapitalized under instant project after its commissioning.

(j) The Petitioner in the instant petition has submitted certificate for notification of COD, MD Certificate, CEA Certificate and Certificate for trial operation of Transmission Asset-III, Asset-IV and Asset-VIII. For Asset-VI, the Petitioner has submitted notification of COD and CEA Certificate and MD Certificate vide affidavit dated 29.12.2021.

(k) The transmission tariff in respect of Assets-I to Asset-IX from their COD to 31.3.2019 was allowed by the Commission vide order dated 22.8.2016 in Petition No. 69/TT/2016. The transmission tariff in respect of Assets-X to Asset-XIV from their COD to 31.3.2019 was allowed by the Commission vide order dated 19.9.2017 in Petition No. 233/TT/2016. The transmission tariff in respect of Assets-XV to Asset-XX was allowed by the Commission from their respective COD to 31.3.2019 vide order dated 30.12.2019 in Petition No. 277/TT/2018. The transmission tariff in respect of Asset-XXI was allowed by the Commission from its COD to 31.3.2019 vide order dated 23.3.2016 in Petition No. 232/TT/2015.

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

5. The Petitioner has served the petition on the Respondents and notice of this application 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. Bihar State Power (Holding) Company Limited (BSPHCL) i.e. Respondent No. 1 has filed a reply in the matter vide affidavit dated 20.7.2021 and has raised issues such as cost over-run, MAT rates, grossing up of RoE, depreciation, O&M expenses, filing fees, floating rate of interest, GST and sharing of transmission charges. In response, the Petitioner has filed a rejoinder vide affidavit dated 28.7.2021. The issues raised by BSPHCL and the clarifications given by the Petitioner are dealt in the relevant paragraphs of this order.

6. The hearing in this matter was held on 6.7.2021 through video conference and the order was reserved.

7. Having heard the representatives of the Petitioner and learned counsels of the Respondents 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 24.6.2020, affidavit dated 12.2.2021 in response to technical validation letter, additional affidavits dated 2.7.2021 and 29.12.2021, reply of BSPHCL vide affidavit dated 20.7.2021 and the Petitioner's rejoinder thereto vide affidavit dated 28.7.2021.

9. BSPHCL has submitted that the details provided for truing up annual transmission tariff of 2014-2019 period in the petition includes depreciation and O&M Expenses. However, for calculating final revised AFC based on truing up, these two components are not given in the petition.

10. Per contra, the Petitioner has submitted that the present petition has been filed based on actual ACE during 2014-2019 and change in MAT rates as well floating rate of interest during 2014-2019. Similarly, depreciation and O&M rates have been fixed in 2014-2019, hence there is no need for the same to be mentioned in the petition.

11. We have considered the rival contentions of the Petitioner and BSPHCL. The Commission has approved trued-up AFC after prudence check of all the components of AFC and dealt the same in the relevant paragraphs of this order.

12. It has been placed before us that BSPHCL has been raising the same issues like MAT rate and RoE in other petitions as well despite clear findings of the Commission rejecting the contentions of BSPHCL including in Petition No. 476/TT/2019 vide order dated 28.5.2021. BSPHCL has not challenged the findings, the same have attained finality. In view of these, the plea(s) raised by BSPHCL are rejected. The issues which are specific to the instant petition and not dealt by the Commission earlier are considered in the relevant paragraphs of this order.

TRUING UP OF ANNUAL FIXED CHARGES FOR THE 2014-2019 TARIFF PERIOD

13. The details of the transmission charges claimed by the Petitioner in respect of the transmission assets are as follows:

(Rs. in lakh)

Asset-I Particulars 2015-2016 (Pro-rata for 91 days) 2016-17 2017-2018 2018-2019 Depreciation 5.80 42.89 46.58 47.30 Interest on Loan 7.02 49.22 45.30 41.18 Return on Equity 6.49 48.02 52.15 53.10 Interest on Working Capital 0.45 3.23 3.32 3.26 O & M Expenses 0.00 0.00 0.00 0.00 Total 19.76 143.36 147.35 144.84

(Rs. in lakh)

Asset-II Particulars 2015-2016 (Pro-rata for 59 days) 2016-17 2017-2018 2018-2019 Depreciation 3.39 39.26 45.07 46.39 Interest on Loan 4.08 44.85 44.08 40.83 Return on Equity 3.79 43.96 50.47 52.08 Interest on Working Capital 0.26 2.95 3.21 3.21 O & M Expenses 0.00 0.00 0.00 0.00 Total 11.52 131.02 142.83 142.51

(Rs. in lakh)

Asset-III Asset-IV Particulars 2016-2017 (Pro-rata for 189 days) 2017-2018 2018-2019 2018-2019 (Pro-rata for 43 days) Depreciation 35.14 77.38 85.45 7.04 Interest on Loan 36.26 75.26 76.84 7.64 Return on Equity 39.06 86.08 95.36 7.91 Interest on Working Capital 2.41 5.20 5.62 0.47 O & M Expenses 0.00 0.00 0.00 0.00 Total 112.87 243.92 263.27 23.06

(Rs. in lakh)

Asset-V Particulars 2016-2017 (Pro-rata for 363 days) 2017-2018 2018-2019 Depreciation 50.81 93.59 95.66 Interest on Loan 53.82 93.03 87.17 Return on Equity 56.89 104.78 107.39 Interest on Working Capital 3.52 6.35 6.33 O & M Expenses 0.00 0.00 0.00 Total 165.04 297.75 296.55

(Rs. in lakh)

Asset-VI Particulars 2016-2017 (Pro-rata for 183 days) 2017-2018 2018-2019 Depreciation 42.93 94.24 100.26 Interest on Loan 45.70 93.44 91.38 Return on Equity 48.07 105.52 112.55 Interest on Working Capital 2.98 6.39 6.63 O & M Expenses 0.00 0.00 0.00 Total 139.68 299.59 310.82

(Rs. in lakh)

Asset-VII Particulars 2015-2016 (Pro-rata for 32 days) 2016-17 2017-2018 2018-2019 Depreciation 2.68 36.66 41.85 47.60 Interest on Loan 3.17 40.90 41.00 42.92 Return on Equity 3.00 41.05 46.85 53.44 Interest on Working Capital 0.20 2.73 2.99 3.31 O & M Expenses 0.00 0.00 0.00 0.00 Total 9.05 121.34 132.69 147.27

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 Depreciation 65.01 150.74 161.78 Interest on Loan 72.08 150.64 147.65 Return on Equity 72.78 168.77 181.62 Interest on Working Capital 6.00 13.22 13.78 O & M Expenses 27.28 56.84 58.73 Total 243.15 540.21 563.56

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 Depreciation 106.90 256.54 283.75 Interest on Loan 118.76 256.40 259.43 Return on Equity 119.69 287.23 318.53 Interest on Working Capital 10.13 22.85 24.37 O & M Expenses 49.62 103.39 106.83 Total 405.10 926.41 992.91

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 Depreciation 6.54 19.88 29.03 Interest on Loan 7.35 20.07 27.64 Return on Equity 7.32 22.26 32.59 Interest on Working Capital 2.44 4.84 5.54 O & M Expenses 37.92 66.51 68.71 Total 61.57 133.56 163.51

(Rs. in lakh)

Asset-XI Asset-XII Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 2016-2017 (Pro-rata for 141 days) Depreciation 82.39 257.92 276.74 34.94 Interest on Loan 84.55 248.39 247.13 34.62 Return on Equity 92.24 288.78 310.67 36.09 Interest on Working Capital 7.05 20.31 21.26 4.13 O & M Expenses 26.68 56.84 58.73 34.81 Total 292.91 872.24 914.53 144.59

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 Depreciation 11.06 192.67 207.29 Interest on Loan 10.90 180.59 178.87 Return on Equity 11.43 199.85 216.68 Interest on Working Capital 1.30 22.23 23.21 O & M Expenses 10.86 186.20 192.40 Total 45.55 781.54 818.45

(Rs. in lakh)

Asset-XIV Particulars 2016-2017 (Pro-rata for days) 2017-2018 2018-2019 Depreciation 48.04 160.01 175.95 Interest on Loan 49.72 155.14 157.62 Return on Equity 53.79 179.16 197.52 Interest on Working Capital 3.30 10.78 11.58 O & M Expenses 0.00 0.00 0.00 Total 154.85 505.09 542.67

(Rs. in lakh)

Asset-XV Asset-XVI Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 2017-2018 (Pro-rata for 20 days) 2018-2019 Depreciation 51.92 191.48 13.09 251.00 Interest on Loan 44.80 158.86 13.64 253.73 Return on Equity 57.42 212.51 14.66 281.78 Interest on Working Capital 5.00 18.09 1.54 29.25 O & M Expenses 32.84 116.81 12.75 240.52 Total 191.98 697.75 55.68 1056.28

(Rs. in lakh)

Asset-XVII Asset-XVIII Particulars 2017-2018 (Pro-rata for 3 days) 2018-2019 2017-2018 (Pro-rata for 46 days) 2018-2019 Depreciation 0.22 29.70 9.44 84.36 Interest on Loan 0.22 29.92 9.52 81.80 Return on Equity 0.24 33.35 10.50 94.12 Interest on Working Capital 0.01 1.99 0.93 8.06 O & M Expenses 0.00 0.00 5.87 48.10 Total 0.69 94.96 36.26 316.44

(Rs. in lakh)

Asset-XIX Asset-XX Particulars 2017-2018 (Pro-rata for 188 days) 2018-2019 2018-2019 (Pro-rata for 183 days) Depreciation 38.07 73.91 25.60 Interest on Loan 38.33 70.99 27.30 Return on Equity 42.62 82.97 28.74 Interest on Working Capital 2.55 4.89 1.69 O & M Expenses 0.00 0.00 0.00 Total 121.57 232.76 83.33

(Rs. in lakh)

Asset-XXI Particulars 2015-2016 (Pro-rata for 263 days) 2016-17 2017-2018 2018-2019 Depreciation 50.42 77.87 86.08 91.50 Interest on Loan 58.27 83.03 80.51 77.66 Return on Equity 56.44 87.19 96.37 102.72 Interest on Working Capital 3.80 5.71 6.05 6.26 O & M Expenses 0.00 0.00 0.00 0.00 Total 168.93 253.80 269.01 278.14

14. The details of the trued-up Interest on Working Capital (IWC) claimed by the Petitioner in respect of the transmission assets are as follows:

(Rs. in lakh)

Asset-I Particulars 2015-2016 (Pro-rata for 91 days) 2016-17 2017-2018 2018-2019 O & M Expenses 0.00 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 0.00 Receivables 13.24 23.89 24.56 24.14 Total of Working Capital 13.24 23.89 24.56 24.14 Rate of Interest on working capital(%) 13.50 13.50 13.50 13.50 Interest of working Capital 0.45 3.23 3.32 3.26

(Rs. in lakh)

Asset-II Particulars 2015-2016 (Pro-rata for 59 days) 2016-17 2017-2018 2018-2019 O & M Expenses 0.00 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 0.00 Receivables 11.91 21.84 23.81 23.75 Total of Working Capital 11.91 21.84 23.81 23.75 Rate of Interest on working capital(%) 13.50 13.50 13.50 13.50 Interest of working Capital 0.26 2.95 3.21 3.21

(Rs. in lakh)

Asset-III Asset-IV Particulars 2016-2017 (Pro-rata for 189 days) 2017-2018 2018-2019 2018-2019 (Pro-rata for 43 days) O & M Expenses 0.00 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 0.00 Receivables 36.33 40.65 43.88 32.62 Total of Working Capital 36.33 40.65 43.88 32.62 Rate of Interest on working capital(%) 12.80 12.80 12.80 12.20 Interest of working Capital 2.41 5.20 5.62 0.47

(Rs. in lakh)

Asset-V Particulars 2016-2017 (Pro-rata for 363 days) 2017-2018 2018-2019 O & M Expenses 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 Receivables 27.66 49.63 49.43 Total of Working Capital 27.66 49.63 49.43 Rate of Interest on working capital(%) 12.80 12.80 12.80 Interest of working Capital 3.52 6.35 6.33

(Rs. in lakh)

Asset-VI Particulars 2016-2017 (Pro-rata for 183 days) 2017-2018 2018-2019 O & M Expenses 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 Receivables 46.43 49.93 51.80 Total of Working Capital 46.43 49.93 51.80 Rate of Interest on working capital(%) 12.80 12.80 12.80 Interest of working Capital 2.98 6.39 6.63

(Rs. in lakh)

Asset-VII Particulars 2015-2016 (Pro-rata for 32 days) 2016-17 2017-2018 2018-2019 O & M Expenses 0.00 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 0.00 Receivables 17.26 20.22 22.12 24.55 Total of Working Capital 17.26 20.22 22.12 24.55 Rate of Interest on working capital(%) 13.50 13.50 13.50 13.50 Interest of working Capital 0.20 2.73 2.99 3.31

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 O & M Expenses 4.59 4.74 4.89 Maintenance Spares 8.25 8.53 8.81 Receivables 81.72 90.04 93.93 Total of Working Capital 94.56 103.31 107.63 Rate of Interest on working capital(%) 12.80 12.80 12.80 Interest of working Capital 6.00 13.22 13.78

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 O & M Expenses 8.34 8.62 8.90 Maintenance Spares 15.01 15.51 16.02 Receivables 136.15 154.40 165.49 Total of Working Capital 159.50 178.53 190.41 Rate of Interest on working capital(%) 12.80 12.80 12.80 Interest of working Capital 10.13 22.85 24.37

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 O & M Expenses 5.36 5.54 5.73 Maintenance Spares 9.66 9.98 10.31 Receivables 17.42 22.26 27.25 Total of Working Capital 32.44 37.78 43.29 Rate of Interest on working capital(%) 12.80 12.80 12.80 Interest of working Capital 2.44 4.84 5.54

(Rs. in lakh)

Asset-XI Asset-XII Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 2016-2017 (Pro-rata for 141 days) O & M Expenses 4.59 4.74 4.89 7.51 Maintenance Spares 8.25 8.53 8.81 13.52 Receivables 100.67 145.37 152.42 62.38 Total of Working Capital 113.51 158.64 166.12 83.41 Rate of Interest on working capital(%) 12.80 12.80 12.80 12.80 Interest of working Capital 7.05 20.31 21.26 4.13

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 O & M Expenses 15.02 15.52 16.03 Maintenance Spares 27.04 27.93 28.86 Receivables 125.95 130.26 136.41 Total of Working Capital 168.01 173.71 181.30 Rate of Interest on working capital(%) 12.80 12.80 12.80 Interest of working Capital 1.30 22.23 23.21

(Rs. in lakh)

Asset-XIV Particulars 2016-2017 (Pro-rata for days) 2017-2018 2018-2019 O & M Expenses 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 Receivables 77.22 84.18 90.45 Total of Working Capital 77.22 84.18 90.45 Rate of Interest on working capital(%) 12.80 12.80 12.80 Interest of working Capital 3.30 10.78 11.58

(Rs. in lakh)

Asset-XV Asset-XVI Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 2017-2018 (Pro-rata for 20 days) 2018-2019 O & M Expenses 9.42 9.73 19.40 20.04 Maintenance Spares 16.96 17.52 34.91 36.08 Receivables 110.17 116.29 169.38 176.05 Total of Working Capital 136.55 143.54 223.69 232.17 Rate of Interest on working capital(%) 12.60 12.60 12.60 12.60 Interest of working Capital 5.00 18.09 1.54 29.25

(Rs. in lakh)

Asset-XVII Asset-XVIII Particulars 2017-2018 (Pro-rata for 3 days) 2018-2019 2017-2018 (Pro-rata for 46 days) 2018-2019 O & M Expenses 0.00 0.00 3.88 4.01 Maintenance Spares 0.00 0.00 6.98 7.22 Receivables 14.09 15.83 47.95 52.74 Total of Working Capital 14.09 15.83 58.81 63.97 Rate of Interest on working capital(%) 12.60 12.60 12.60 12.60 Interest of working Capital 0.01 1.99 0.93 8.06

(Rs. in lakh)

Asset-XIX Asset-XX Particulars 2017-2018 (Pro-rata for 188 days) 2018-2019 2018-2019 (Pro-rata for 183 days) O & M Expenses 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 Receivables 39.34 38.79 27.70 Total of Working Capital 39.34 38.79 27.70 Rate of Interest on working capital(%) 12.60 12.60 12.20 Interest of working Capital 2.55 lakh 4.89 lakh 1.69 lakh

(Rs. in lakh)

Asset-XXI Particulars 2015-2016 (Pro-rata for 263 days) 2016-17 2017-2018 2018-2019 O & M Expenses 0.00 0.00 0.00 0.00 Maintenance Spares 0.00 0.00 0.00 0.00 Receivables 39.18 42.30 44.84 46.36 Total of Working Capital 39.18 42.30 44.84 46.36 Rate of Interest on working capital(%) 13.50 13.50 13.50 13.50 Interest of working Capital 3.80 5.71 6.05 6.26

Date of Commercial Operation (COD)

15. The Commission vide order dated 22.8.2016 in Petition No. 69/TT/2016 had approved the COD of the Assets-III, IV, VI, VII, IX and X on anticipated basis. The details of the same are as follows:

Asset nomenclature in Order dated 22.8.2016 in Petition No. 69/TT/2016 Asset nomenclature in current Petition Anticipated COD approved in Order dated 22.8.2016 in Petition No. 69/TT/2016 Asset-III Asset-III 1.11.2016 Asset-IV Asset-IV 1.12.2016 Asset-VI - 1.10.2016 Asset-VII Asset-VI 1.10.2016 Asset-IX Asset-VIII 30.9.2016 Asset-X Asset-IX 30.9.2016

16. The Petitioner in the instant true-up Petition has claimed actual COD of Assets-III, IV, VI, VIII and IX as 24.9.2016, 17.2.2019, 30.9.2016, 2.10.2016 and 2.10.2016 respectively.

17. Taking into consideration of CEA Energisation Certificate, RLDC Charging Certificate and CMD Certificate as required under Grid Code, the COD of the Assets-III, IV, VI, VIII and IX has been approved as 24.9.2016, 17.2.2019, 30.9.2016, 2.10.2016 and 2.10.2016 respectively.

Capital Cost as on COD

18. The Commission had allowed the capital cost as on COD and ACE for 2014-2019 tariff Period: for Asset-I to Asset IX, vide order dated 22.8.2016 in Petition No. 69/TT/2016; for Asset-X to Asset-XIV, vide order dated 19.9.2017 in Petition No. 233/TT/2016; for Asset-XV to Asset-XX, vide order dated 30.12.2019 in Petition No. 277/TT/2018 and for Asset-XXI the capital cost and ACE was allowed vide order dated 23.3.2016 in Petition No. 232/TT/2015. The details of the same are as follows:

(Rs. in lakh)

Asset FR Apportioned Approved Cost Capital Cost allowed as on COD ACE 2014-2019 Estimated Completion Cost (as allowed) (as admitted by CERC) 2015-16 2016-17 2017-2018 2018-2019 Commission's order dated 22.8.2016 in Petition No.: 69/TT/2016 Asset-I 983.57 124.54 629.14 229.89 0.00 0.00 983.57 Asset-II 1157.05 135.58 521.49 470.34 0.00 0.00 1127.41 Asset-III 2028.96 1543.64 0.00 79.50 79.50 39.75 1742.39 Asset-IV 2028.96 1550.89 0.00 79.50 79.50 39.75 1749.64 Asset-V 2055.72 97.48 0.00 1392.96 160.66 160.66 1811.76 Asset-VI 2044.63 1053.76 0.00 365.73 365.73 182.86 1968.08 Asset-VII 996.94 485.43 73.96 421.53 16.02 0.00 996.94 Asset-VIII 2864.31 1926.76 0.00 937.55 0.00 0.00 2864.31 Aset-IX 4974.17 4370.13 0.00 604.04 0.00 0.00 4974.17

(Rs. in lakh)

Asset FR Apportioned Approved Cost RCE-I Apportioned Approved Cost Capital Cost allowed as on COD ACE 2014-2019 Estimated Completion Cost (as allowed) (as admitted by CERC) 2015-16 2016-17 2017-2018 2018-2019 Commission's order dated 19.9.2017 in Petition No.: 233/TT/2016 Asset-X 351.04 671.44 178.10 0.00 238.25 200.51 0.00 616.86 Asset-XI 5249.00 6197.65 1588.32 0.00 3305.09 1034.96 0.00 5928.37 Asset-XII & XIII 4637.80 4669.14 3771.21 0.00 102.63 337.94 298.85 4510.63 Asset-XIV 5912.15 3942.07 2579.61 0.00 598.30 629.37 0.00 3807.28

(Rs. in lakh)

Asset FR Apportion ed Approved Cost RCE-II Apportioned Approved Cost Capital Cost allowed as on COD Add Cap 2014-2019 Estimated Completion Cost (as allowed) (as admitted by CERC) 2015-16 2016-17 2017-2018 2018-2019 Commission's order dated 30.12.2019 in Petition No.: 277/TT/2018 Asset-XV 2269.94 3261.20 2357.84 0.00 0.00 161.78 402.60 2922.40 Asset-XVI 5403.71 5296.70 4422.14 0.00 0.00 108.84 431.56 4962.54 Asset-XVII 851.12 1023.43 446.44 0.00 0.00 52.54 289.54 788.54 Asset-XVIII 0.00 1822.76 1268.36 0.00 0.00 239.32 198.23 1705.91 Asset-XIX 1588.81 1547.79 1396.47 0.00 0.00 64.83 50.00 1511.32 Asset-XX 1588.91 1578.79 750.69 0.00 0.00 0.00 553.03 1303.72

(Rs. in lakh)

Asset FR Apportioned Approved Cost as per FR Capital Cost allowed as on COD ACE 2014-2019 Estimated Completion Cost (as allowed) (as admitted by CERC) 2015-16 2016-17 2017-2018 2018-2019 Commission's order dated 23.3.2016 in Petition No.: 232/TT/2015 Asset-XXI 2044.63 1248.03 196.92 202.55 98.46 0.00 1745.96

19. The Petitioner vide Auditor's Certificate has submitted the capital cost as on COD along with ACE up to 31.3.2019. The details of the apportioned approved capital cost, capital cost as on COD and the ACE incurred upto 31.3.2019 as claimed by the Petitioner in the instant true-up petition for the transmission assets are as follows:

(Rs. in lakh)

Assets FR Apportion ed Approved Cost RCE-I Apportio ned Approve d, cost RCE-II Apportion ed Approved, cost Expendit ure up to COD ACE 2014-2019 Capital Cost as on 31.03.2019 (as per auditor's certificate) 2015-16 2016-17 2017-2018 2018-2019 Asset-I 983.57 1050.21 1009.33 126.89 629.14 112.37 27.47 0.00 895.87 Asset-II 1157.05 1050.21 1009.33 137.19 521.49 169.94 50.00 0.00 878.62 Asset-III 2028.96 1837.58 1742.81 1248.45 0.00 54.86 305.57 0.00 1608.88 Asset-IV 2028.96 1868.41 1609.09 1130.80 0.00 0.00 0.00 2.64 1133.44 Asset-V 2025.75 1919.93 1811.77 202.13 0.00 1531.02 78.61 0.00 1811.76 Asset-VI 2044.63 2103.10 1921.34 1558.35 0.00 126.55 199.92 28.16 1912.98 Asset-VII 996.94 1117.09 1072.77 544.20 73.96 152.44 43.91 174.06 988.57 Asset-VIII 2864.31 3871.16 3529.88 2203.34 0.00 558.67 185.68 232.73 3180.42 Aset-IX 4974.17 6011.35 5603.02 3595.86 0.00 974.02 577.51 453.13 5600.52 Asset-X 351.04 671.44 642.11 181.7 0.00 57.49 275.02 71.29 585.50 Asset-XI 5249 6197.65 6052.73 1685.23 0.00 3064.81 269.43 443.46 5462.93 Asset-XII 4637.80 4649.14 4508.94 1556.81 0.00 46.81 173.28 101.79 1878.69 Asset-XIII 1603.62 0.00 0.00 173.28 101.79 1878.69 Asset-XIV 5912.15 3942.07 3841.85 2599.00 0.00 246.82 369.45 234.26 3449.53 Asset-XV 2269.94 3261.20 3180.42 3319.57* 0.00 0.00 132.48 348.99 3801.04 Asset-XVI 5403.71 5296.70 5296.70 4478.2 0.00 0.00 95.12 361.02 4934.34 Asset-XVII 851.12 1023.43 1023.43 475.54 0.00 0.00 41.16 91.78 608.48 Asset-XVIII 0.00 NA 1822.76 1293.8 0.00 0.00 230.07 127.86 1651.73 Asset-XIX 1588.81 1547.79 1547.79 1399.79 0.00 0.00 0.00 0.00 1399.79 Asset-XX 1588.91 1578.79 1578.79 842.14 0.00 0.00 0.00 249.86 1092.00 Asset-XXI 2044.63 1845.96 1745.96 1248.03 161.38 130.97 179.68 25.90 1745.96

*including capital cost of shifting ICT of Rs. 878.63 lakh which is re-capitalised under this project after de-capitalization from its original project.

Cost Over-run

20. The Commission, vide order dated 22.8.2016, in Petition No. 69/TT/2016 has held as follows:

“20. We have considered the submissions of the petitioner. It is observed that the completion cost as submitted by the petitioner for the Asset-I, VIII, IX and X is exceeding the approved apportioned cost and detailed justification for the same is note provided by the petitioner. Hence, we have restricted the cost of the assets to the approved apportioned FR cost and the same will be reviewed at the time of truing up on submission of justification for the cost over-run.”

21. The Commission, vide order dated 30.12.2019 in Petition No. 277/TT/2018 directed the Petitioner to submit the detailed explanation of cost variation of Asset-XV (Asset-I in Petition No. 277/TT/2018) at the time of truing up. The relevant extract of the order are as follow:

“31(d)……………….. Considering the submissions of the Petitioner, we provisionally approve the estimated capital cost of Asset-I as claimed vide Management Certificate. However, the Petitioner is directed to submit the detailed explanation with regard to variation of capital cost in respect of Asset-I at the time of truing up exercise.”

22. The Petitioner in the instant petition has submitted the following reasons in respect of cost variation:

Variation in Quantities (QV):

a. There is increase in cost of switchgear due to increase in quantity as per actual. The detail of quantity as per FR and actual is detailed as follows:

Particular Unit As per FR As per actual 400 kV equipment Circuit breaker without PIR Nos. 1 2 Controlled switching Device Nos. 0 2 BPI Nos. 0 12 220 kV equipment 1 PH CVT Nos. 0 3 220 kV BPI Nos. 0 23 221 kV High BPI Nos. 0 4 Control and relay panel protection CB Relay panel without A/R Nos. 1 2 Bus bar protection panel Augmentation Nos. 1 2 Relay test kit Nos. 1 2 Switchyard erection work as per actual site requirement

b. Further, cost variation in items having major deviations is tabulated below along with justification:

(Rs. in lakh)

Unit Qty Total cost Variation Remarks Sl No Name of Equipment As per FR As per RCE-II As per FR Actual expenditure 1 SUB-STATION AUXILIARIES A Power & Control Cables L.S. 1 1 42 438.41 -396.41 In FR, the calculation is based on normative basis, however during execution the detailed engineering has been carried out as per actual site condition. Bay identified earlier by JUSNL for termination of its 220kV transmission line was at remote/far end but original location agreed was provided is nearer to POWERGRID boundary wall. During preparation of FR, a lumsum of 100-150 meter of control cable had been taken. In actual there is a distance between ICT-III bay with control room is approx. 400 m which is almost 3-4 times as compared to FR. This leads to many fold increment in cost of control cable. 2 SWITCHYARD ERECTION A Equipment Structure L.S. 1 1 119 246.1 -110.77 B Other Equipment (Bus Bar materials) L.S. 1 1 45.5 236.9 -101.4 Variation is due to change in Qty & per unit cost. In FR the calculation is based on normative basis, however during execution the detailed engineering has been carried out as per actual site conditions as explained above at Sl. No. 1(A). C Equipment Civil works L.S. 1 1 145 322.66 -107.66 D Erection/Miscellaneous Civil Works L.S. 1 1 17.224 75.46 -58.236 3 Sub-Total -774.47

23. The Respondent, BSPHCL, has submitted that the reasons given by the Petitioner for cost variation are vague and general in nature and the Petitioner has not substantiated its submissions. The cost over-run being claimed by the Petitioner is a huge amount and, therefore, the Petitioner must explain the reasons for not making proper calculation according to the site conditions.

24. In response, the Petitioner has submitted that detailed reasons and justification for cost variation have been provided in the petition.

25. We have considered the submissions of the Petitioner and the Respondent, BSPHCL. The details of the capital cost of the transmission project approved by the BoD of the Petitioner are as follows:

Date Project Cost Investment Approval (IA)19.5.2014 Rs. 52229 lakh, which included IDC of Rs. 3324 lakh Revised Cost Estimate-I (RCE-I) 24.03.2017 Rs. 55018 lakh including IDC of Rs. 1700 lakh Revised Cost Estimate-I (RCE-II) 14.03.2019 Rs. 54636 lakh including IDC of Rs. 2403 lakh

26. As compared with FR cost, the completion cost of Assets-II, III, IV, V, VI is within FR cost. As compared with FR cost, the completion cost of Assets-I, VII, VIII and Asset-IX has increased by an amount of Rs. 12.3 lakhs, Rs. 75.83 lakh, Rs. 386.03 lakh, and Rs. 626.35 lakh respectively. The Petitioner has submitted RCE-I duly approved by the Competent Authority viz. CMD of the Petitioner. The estimated completion cost of Asset-I to Asset-IX is within RCE-I.

27. As reagrds cost over-run in case of Asset-X to Asset-XIV, the Commission vide order dated 19.9.2017 in petition No. 233/TT/2016 had already taken cognisance of RCE-I and the completion cost of Asset-X to Asset-XIV is within the RCE-I.

28. As reagrds cost over-run in case of Asset-XV to Asset-XX, the Commission vide order dated 30.12.2019 in Petition No. 277/TT/2018 had already taken conginsance of RCE-I and RCE-II. The estimated completion cost of Asset-XV to Asset-XX is within RCE-II.

29. The estimated completion cost of Asset-XXI is within the FR cost.

30. It is further observed that in the instant case, apportioned approved cost as per RCE-I is Rs. 55018.00 lakh whereas the estimated completion cost of the transmission project is Rs. 48838.04 lakh. Thus, the total project cost is reduced by Rs. 6179.96 lakh. This variation of cost is approved by the Competent Authority viz. CMD of the Petitioner Company. The Petitioner has further submitted the duly approved RCE-II. Accordingly, the cost variation is allowed.

Time Over-run

31. As per the Investment Approval (IA), the transmission project was scheduled to be commissioned within 30 months from the date of IA i.e. 19.5.2014. Accordingly, the Commissioning Schedule was 19.11.2016.

32. The scheduled date of commercial operation (SCOD) of the transmission assets and the actual COD of the transmission assets and time over-run details allowed in previous orders are as follows:

Asset SCOD COD Time Overrun Time Over-run condoned/not condoned in the Previous Order Previous Order Asset-X 12.11.2016 29.8.2016 - - Order dated 19.9.2017 in Petition No. 233/TT/2016 Asset-XI 6.10.2016 - - Asset-XII 20.10.2016 - - Asset-XIII 10.3.2017 - - Asset-XIV 30.11.2016 19 days Fully condoned Asset-XV 13.11.2016 16.12.2017 398 days Not condoned Order dated 30.12.2019 in Petition No. 277/TT/2018 Asset-XVI 12.3.2018 484 days Fully condoned Asset-XVII 29.3.2018 501 days Not condoned Asset-XVIII December 2019* 14.2.2018 - - Asset-XIX 13.11.2016 25.9.2017 316 days Not condoned Asset-XX 30.9.2018 686 days Not condoned Asset-XXI 19.11.2016 13.7.2015 - - Order dated 23.3.2016 in Petition No. 232/TT/2016

*The petitioner has included the 3rd 500 MVA ICT at Patna in RCE-II dated 14.3.2019. As per the RCE-II, the entire project is scheduled to be commissioned by December, 2019. However, Asset-XVIII has been commissioned on 14.2.2018. Hence, there is no time delay in commissioning of Asset-XVIII.

33. The Commission vide order dated 22.8.2016 in Petition No. 69/TT/2016 has approved the COD of the Assets-III, IV, VI, VIII and IX on anticipated basis and directed the Petitioner to submit the actual COD of the assets, RLDC certificates and the justification for time over-run. The relevant extract of the order is as follows:

“16. As per the investment approval dated 19.5.2014, the commissioning schedule of the project was 30 months from the date of investment approval. Accordingly, the scheduled date of commercial operation works out to 19.11.2016. Assets-I, II, V and VIII were commissioned on 1.1.2016, 2.2.2016, 3.4.2016 and 29.2.2016 respectively and Assets III, IV, VI, VII, IX and X are anticipated to be commissioned by 1.11.2016, 1.12.2016, 1.10.2016, 1.10.2016, 30.9.2016 and 30.9.2016 for respectively. There is no time over-run in case of Assets-I, II, V and VIII and all the other assets except for Asset IV are anticipated to be commissioned within 30 months from the date of Investment Approval. The time over-run, if any, in case of the other assets would be considered at the time of truing up. The petitioner is directed to submit actual COD of the assets, RLDC certificates and the justification for time over-run, if any, alongwith the documentary evidence in chronological order at the time of truing up.”

34. With regard to the time over-run in respect of Asset-III, IV, VI, VIII and IX, the Petitioner has submitted as follows:

Asset SCOD COD Time Over-run Asset-III 19.11.2016 24.9.2016 No delay Asset-IV 17.2.2019 27 months Asset-VI 30.9.2016 No delay Asset-VIII 2.10.2016 No delay Asset-IX 2.10.2016 No delay

35. The Petitioner has submitted that the delay in commissioning of Asset-IV is due to failure in type test at GE works. Thereafter M/s GE tied-up with M/s T& R for supply of ICT as a bought out items. The Petitioner has further submitted that there was no cost over-run on account of the time over-run as the payments were released in phased manner so that there was no impact on IDC and no additional PV was paid on account of this delay.

36. The Petitioner has submitted the comparison of actual IDC and IEDC vis-a-vis as envisaged in FR cost as follows:

(Rs. in lakh)

Asset IDC as per FR for completion period of 24 months IDC as per Auditor Certificate IEDC as per FR for completion period of 24 months IEDC as per Auditor Certificate Asset-IV 114.53 47.01 278.16 235.14

37. With the above comparative statement, the Petitioner has submitted that even after a delay of 27 months, Asset-wise IDC and IEDC incurred for the Asset-IV covered under the Petition is less than that envisaged during FR and there is no extra financial burden on the consumers.

38. The Petitioner has further mentioned that the loan deployed in the project was in the month of December 2017 after the SCOD. Hence, there is no additional burden of IDC on the consumers.

39. We have considered the submissions of the Petitioner with regard to time overrun in case of Asset-IV. The time over-run of 820 days is due to the failure in type test at GE works. Regulation 12 (1) (b) and (c) of the 2014 Tariff Regulation provides the following:

“12. Controllable and uncontrollable factors:

(1) The “controllable factors” shall include but shall not be limited to the following: --------------------------------------------------------------------------------------------

(b) Efficiency in the implementation of the project not involving approved change in scope of such project, change in statutory levied or force majeure events; and

(c) Delay in execution of the project on account of contractor, supplier or agency of the generating company or transmission licensee.”

40. In the instant case, the delay is due to the supplier in manufacturing and supply of transformer by the contractor. Therefore, the entire time over-run in case of the said transmission asset falls under the contractual issues and, therefore, covered under the controllable factors as per Regulation 22(1)(b) of the 2019 Tariff Regulations. Accordingly, we are not inclined to condone the time over-run in case of the Asset-IV.

41. Except Asset-IV, the Commission has already settled the time over-run issues in respect of all the other assets. The time over-run in case of Assets-I to IX except Assets-III, IV VI, VIII and IX was dealt by the Commission vide order dated 22.8.2016 in Petition No. 69/TT/2016. The time over-run in case of Asset-X to Asset-XIV was dealt by the Commission vide order dated 19.9.2017 in Petition No. 233/TT/2016. The time over-run in case of Asset-XV to Asset-XX was dealt with by the Commission vide order dated 30.12.2019 in Petition No. 277/TT/2018. The time over-run in case of Asset-XXI was dealt with by the Commission vide order dated 23.3.2016 in Petition No. 232/TT/2015.

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

42. The Petitioner has claimed IDC for the transmission assets and has submitted the Auditor's Certificates in support of the same. The Petitioner has submitted the computation of IDC along with year-wise details of the IDC discharged.

43. We have considered the submissions of the Petitioner. The allowable IDC has been worked out considering the information submitted by the Petitioner for the transmission assets separately on cash basis. The loan details submitted in Form-9C for the 2014-2019 tariff period and the 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 assets has been considered as ACE during the year in which it has been discharged.

44. Accordingly, based on the information furnished by the Petitioner, the IDC considered for transmission assets is as follows:

(Rs. in lakh)

Asset 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 2015-16 2016-17 2017-2018 2018-2019 A B C=A-B D E=B-D F G H I Asset-I 2.27 2.24 0.03 0.00 2.24 0.00 2.24 0.00 0.00 Asset-II 3.18 3.12 0.06 0.00 3.12 0.00 3.12 0.00 0.00 Asset-III 15.41 15.27 0.14 2.09 13.18 0.00 0.09 13.09 0.00 Asset-IV 47.01 0.00 47.01 0.00 0.00 0.00 0.00 0.00 0.00 Asset-V 4.37 4.35 0.02 1.30 3.05 0.00 3.05 0.00 0.00 Asset-VI 35.01 34.84 0.17 18.88 15.96 0.00 1.24 14.72 0.00 Asset-VII 12.34 12.31 0.03 0.00 12.31 1.23 11.08 0.00 0.00 Asset-VIII 67.76 67.66 0.10 56.32 11.34 0.00 0.22 11.13 0.00 Asset-IX 111.90 111.76 0.14 95.31 16.45 0.00 0.36 16.09 0.00 Asset-X 6.57 6.57 0.00 5.11 1.46 0.00 0.68 0.78 0.00 Asset-XI 42.40 42.33 0.07 7.21 35.12 0.00 0.16 34.95 0.00 Asset-XII 63.96 63.93 0.03 43.89 20.04 0.00 0.55 19.49 0.00 Asset-XIII 63.95 63.95 0.00 43.84 20.11 0.00 0.54 19.57 0.00 Asset-XIV 60.88 60.72 0.16 25.59 35.14 0.00 2.22 32.92 0.00 Asset-XV 227.82 85.06 142.76 85.06 0.00 0.00 0.00 0.00 0.00 Asset-XVI 348.94 346.35 2.59 278.85 67.50 0.00 0.00 0.00 67.50 Asset-XVII 24.15 6.37 17.78 6.37 0.00 0.00 0.00 0.00 0.00 Asset-XVIII 14.32 14.18 0.14 0.00 14.18 0.00 0.00 0.00 14.18 Asset-XIX 38.89 9.48 29.41 9.48 0.00 0.00 0.00 0.00 0.00 Asset-XX 47.41 7.80 39.61 7.80 0.00 0.00 0.00 0.00 0.00 Asset-XXI 5.63 5.63 0.00 0.00 5.63 0.00 5.63 0.00 0.00

45. The Petitioner has claimed IEDC and has submitted Form-12A and Auditor's Certificate in support of its claim.

46. We have examined the Form-12A along with the Auditor's Certificate submitted by the Petitioner in support of it's claim. The IEDC allowed for transmission assets is as follows:

(Rs. in lakh)

Asset IEDC claimed IEDC disallowed due to time over-run IEDC allowed Asset-I 9.66 0.00 9.66 Asset-II 4.58 0.00 4.58 Asset-III 73.01 0.00 73.01 Asset-IV 235.14 111.13 124.01 Asset-V 13.61 0.00 13.61 Asset-VI 93.44 0.00 93.44 Asset-VII 7.27 0.00 7.27 Asset-VIII 11.82 0.00 11.82 Asset-IX 19.68 0.00 19.68 Asset-X 1.10 0.00 1.10 Asset-XI 15.74 0.00 15.74 Asset-XII 125.48 0.00 125.48 Asset-XIII 125.48 0.00 125.48 Asset-XIV 12.96 0.00 12.96 Asset-XV 244.23 74.03 170.20 Asset-XVI 441.25 0.00 441.25 Asset-XVII 39.08 13.83 25.25 Asset-XVIII 166.92 0.00 166.92 Asset-XIX 27.39 7.03 20.36 Asset-XX 32.64 13.99 18.65 Asset-XXI 64.44 0.00 64.44

Initial Spares

47. The Petitioner has claimed the following initial spares for the transmission assets and prayed for revision of the initial spares allowed earlier in light of the Judgment of the Appellate Tribunal for Electricity (APTEL) dated 14.9.2019 in Appeal No. 74 of 2017. Initial spares claimed by the Petitioner are as follows:

Asset Estimated Completion Cost (A) (Rs. in lakh) Initial Spares Claimed (B) (Rs. in lakh) Ceiling Limit (%) (C) Initial Spares Worked out (Rs. in lakh) D = [(A-B)*C/(100-C)] Asset-I 983.94 29.36 6 60.93 Asset-II 970.86 16.13 6 60.94 Asset-III 1654.38 97.15 6 99.40 Asset-IV 1122.09 44.88 6 68.76 Asset-V 1793.78 104.65 6 107.82 Asset-VI 1792.89 105.46 6 107.71 Asset-VII 1053.16 60.01 6 63.39 Asset-VIII 3170.76 176.00 5 157.62 Asset-IX 5468.94 285.64 5 272.81 Asset-X 627.83 40.15 6 37.51 Asset-XI 5504.79 449.07 5 266.09 Asset-XII 1640.43 82.02 5 82.02 Asset-XIII 1640.43 82.02 5 82.02 Asset-XIV 3475.70 205.96 5 172.09 Asset-XV 2338.45 140.31 6 140.31 Asset-XVI 4340.76 173.63 5 219.32 Asset-XVII 794.20 47.65 6 47.65 Asset-XVIII 1641.52 65.00 6 100.63 Asset-XIX 1369.95 0.00 6 87.44 Asset-XX 1443.55 79.00 6 87.10 Asset-XXI 1642.12 64.90 6 100.67 Total 44470.53 2348.99 2422.23

48. The Petitioner has further submitted that the expenditure on initial spares is included in the Auditor’'s Certificate as per actual cash expenditure incurred (i.e., the initial spares discharged upto COD are included in the COD cost of Auditor Certificate and those discharged after COD have been included in the respective year's additional capital expenditure in the Auditor Certificate) since the expenditure on initial spares is included in the Auditor Certificate as per cash outflow. Discharge of initial spares as included in the Auditor certificate is as follows:

(Rs. in lakh)

Asset Total Spares Claimed Expenditure on Initial Spares Upto COD and included in Auditor Certificate upto COD Actual Expenditur e on Initial Spares in 2015-2016 (Add cap) Actual Expenditure on Initial Spares in 2016-2017 (Add cap) Actual Expenditure on Initial Spares in 2017-2018 (Add cap) Actual Expenditure on Iinitial Spares in 2018-2019 (Add cap) Estimated Expenditur e on Initial Spares in 2019-2020 (Add cap) Asset-I 29.36 27.01 0.00 2.35 0.00 0.00 0.00 Asset-II 16.13 14.52 0.00 1.61 0.00 0.00 0.00 Asset-III 97.15 89.97 0.00 0.00 0.00 0.00 7.18 Asset-IV 44.88 36.45 0.00 0.00 0.00 0.00 8.43 Asset-V 104.65 0.00 0.00 104.65 0.00 0.00 0.00 Asset-VI 105.46 105.46 0.00 0.00 0.00 0.00 0.00 Asset-VII 60.01 60.01 0.00 0.00 0.00 0.00 0.00 Asset-VIII 176.00 125.44 0.00 50.56 0.00 0.00 0.00 Asset-IX 285.64 212.27 0.00 18.26 56.11 0.00 0.00 Asset-X 40.15 36.14 0.00 2.00 2.01 0.00 0.00 Asset-XI 449.07 404.16 0.00 22.46 22.45 0.00 0.00 Asset XII 82.02 82.02 0.00 0.00 0.00 0.00 0.00 Asset-XIII 82.02 82.02 0.00 0.00 0.00 0.00 0.00 Asset-XIV 205.96 185.37 0.00 10.30 10.29 0.00 0.00 Asset-XV 140.31 111.01 0.00 0.00 29.30 0.00 0.00 Asset-XVI 173.63 118.61 0.00 0.00 13.72 41.30 0.00 Asset-XVII 47.65 31.625 0.00 0.00 11.375 4.65 0.00 Asset-XVIII 65.00 42.25 0.00 0.00 9.25 13.50 0.00 Asset-XIX 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Asset-XX 79.00 0.00 0.00 0.00 0.00 0.00 79.00 Asset-XXI 64.90 64.90 0.00 0.00 0.00 0.00 0.00

49. We have considered the submissions of the Petitioner. The Petiitoner has claimed initial spares on the basis of estimated completion cost of the transmission assets. The plant and machinery cost as on cut-off date is considered for the purpose of calculation of initial spares.

50. In terms of the APTEL's judgment dated 14.9.2019 in Appeal No. 74 of 2017, the initial spares are to be allowed as per the ceiling limits on overall project cost. The APTEL in Judgment dated 14.9.2019 in Appeal No. 74 of 2017 held as follows:

“8.13……………We do not agree with this methodology of restricting initial spares asset/element wise as adopted by the Central Commission. The Central Commission to have a prudence check on the initial spares, being restricted based on the individual asset wise cost initially, but subsequently ought to have allowed as per the ceiling limits on the overall project cost basis during the true-up.”

51. Accordingly, initial spares are allowed as percentage of the project cost as a whole. The transmission assets covered under the transmission project have been put into commercial operation in 2014-2019 tariff period. The transmission project as per I.A. was completed during 2014-2019 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 the 2019-2024 tariff period. Therefore, the initial spares are allowed on the basis of the cost of the individual transmission assets in the 2014-2019 tariff period and the initial spares are allowed on the basis of the overall project cost in the 2019-2024 period (as discussed in the relevant portion of the instant order). The initial spares allowed by the Commission for transmission assets are as follows:

Sub-stations:

Asset 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 the 2014 Tariff Regulations (Rs. in lakh) Initial Spares allowed (Rs. in lakh) Asset-I 883.94 29.36 6.00 54.55 29.36 Asset-II 870.86 16.13 6.00 54.56 16.13 Asset-III 1520.45 97.15 6.00 90.85 90.85 Asset-IV 1122.09 44.88 6.00 68.76 44.88 Asset-V 1793.78 104.65 6.00 107.82 104.65 Asset-VI 1784.53 105.46 6.00 107.17 105.46 Asset-VII 968.96 60.01 6.00 58.02 58.02 Asset-VIII 3100.84 176.00 5.00 153.94 153.94 Asset-IX 5468.94 285.64 5.00 272.81 272.81 Asset-X 577.83 40.15 6.00 34.32 34.32 Asset-XI 5404.79 449.07 5.00 260.83 260.83 Asset XII 1590.26 82.02 5.00 79.38 79.38 Asset-XIII 1640.43 82.02 5.00 82.02 82.02 Asset-XIV 3375.70 205.96 5.00 166.83 166.83 Asset-XV 2338.45 140.31 6.00 140.31 140.31 Asset-XVI 4340.76 173.63 5.00 219.32 173.63 Asset-XVII 794.20 47.65 6.00 47.65 47.65 Asset-XVIII 1641.52 65.00 6.00 100.63 65.00 Asset-XIX 1369.95 0.00 6.00 87.44 0.00 Asset-XX 1443.55 79.00 6.00 87.10 79.00 Asset-XXI 1649.99 64.90 6.00 101.18 64.90

52. The discharge of allowed initial spares in 2014-2019 tariff period are as follows:

(Rs. in lakh)

Asset Total Initial Spares allowed Allowed initial Spares Upto COD Allowed Initial Spares in 2015-2016 (ACE) Allowed on Initial Spares in 2016-2017 (ACE) Allowed Initial Spares in 2017-2018 (ACE) Allowed Initial Spares in 2018-2019 (ACE) Allowed Initial Spares in 2019-2020 (ACE) Asset-I 29.36 27.01 0.00 2.35 0.00 0.00 0.00 Asset-II 16.13 14.52 0.00 1.61 0.00 0.00 0.00 Asset-III 90.85 89.97 0.00 0.00 0.00 0.00 0.88 Asset-IV 44.88 36.45 0.00 0.00 0.00 0.00 8.43 Asset-V 104.65 0.00 0.00 104.65 0.00 0.00 0.00 Asset-VI 105.46 105.46 0.00 0.00 0.00 0.00 0.00 Asset-VII 58.02 58.02 0.00 0.00 0.00 0.00 0.00 Asset-VIII 153.94 125.44 0.00 28.50 0.00 0.00 0.00 Asset-IX 272.81 212.27 0.00 18.26 42.28 0.00 0.00 Asset-X 34.32 34.32 0.00 0.00 0.00 0.00 0.00 Asset-XI 260.83 260.83 0.00 0.00 0.00 0.00 0.00 Asset XII 79.38 79.38 0.00 0.00 0.00 0.00 0.00 Asset-XIII 82.02 82.02 0.00 0.00 0.00 0.00 0.00 Asset-XIV 166.83 166.83 0.00 0.00 0.00 0.00 0.00 Asset-XV 140.31 111.01 0.00 0.00 29.30 0.00 0.00 Asset-XVI 173.63 118.61 0.00 0.00 13.72 41.30 0.00 Asset-XVII 47.65 31.625 0.00 0.00 11.375 4.65 0.00 Asset-XVIII 65.00 42.25 0.00 0.00 9.25 13.50 0.00 Asset-XIX 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Asset-XX 79.00 0.00 0.00 0.00 0.00 0.00 79.00 Asset-XXI 64.90 64.90 0.00 0.00 0.00 0.00 0.00

Capital Cost allowed as on COD

53. The capital cost has been allowed as on COD for transmission assets are as follows:

(Rs. in lakh)

Asset Capital Cost as on COD as per Auditor's Certificate Less: IDC Claimed Add: IDC Allowed as on COD Less: IEDC disallowed due to time over-run not condoned Less: Excess Initial Spares as on COD Capital Cost as on COD (on cash basis) Asset-I 129.16 2.27 0.00 0.00 0.00 126.89 Asset-II 140.37 3.18 0.00 0.00 0.00 137.19 Asset-III 1261.77 15.41 2.09 0.00 0.00 1248.45 Asset-IV 1134.37 47.01 0.00 111.13 0.00 976.23 Asset-V 205.17 4.37 1.30 0.00 0.00 202.10 Asset-VI 1574.48 35.01 18.88 0.00 0.00 1558.35 Asset-VII 556.54 12.34 0.00 0.00 1.99 542.21 Asset-VIII 2214.82 67.76 56.32 0.00 0.00 2203.38 Asset-IX 3612.50 111.90 95.31 0.00 0.00 3595.91 Asset-X 182.98 6.57 5.11 0.00 1.82 179.70 Asset-XI 1720.42 42.40 7.21 0.00 143.33 1541.90 Asset XII 1576.99 63.96 43.89 0.00 2.64 1554.29 Asset-XIII 1623.25 63.95 43.84 0.00 0.00 1603.14 Asset-XIV 2634.32 60.88 25.59 0.00 18.54 2580.48 Asset-XV 2657.73 227.82 85.06 74.03 0.00 2440.94 Asset-XVI 4546.27 348.94 278.85 0.00 0.00 4476.18 Asset-XVII 507.15 24.15 6.37 13.83 0.00 475.54 Asset-XVIII 1308.12 14.32 0.00 0.00 0.00 1293.80 Asset-XIX 1436.23 38.89 9.48 7.03 0.00 1399.79 Asset-XX 895.74 47.41 7.80 13.99 0.00 842.14 Asset-XXI 1253.66 5.63 0.00 0.00 0.00 1248.03

Decapitalisation and Re-capitalisation

54. As regards Assets-I, II, III, IV, V, VI, VII and XXI, the following has been observed:

Sl. No. Asset COD Original Petition/Project under Old ICT claimed Old ICT COD Remarks 1 Asset-I: Replacement of existing 100 MVA, 220/132 ICT with 01 No. 1X160 MVA ICT at 220/132kV Birpara Sub-station alongwith associated bays at Birpara Sub-station 1.1.2016 269/TT/2020 (Chukka TS) 1.4.1992 Used as spare 2 Asset-II: Replacement of existing 100 MVA, 220/132 ICT with 1x160 MVA, 220/132 kV ICT at 220/132 kV Siliguri Sub-station along with necessary bay eqpt/protection system at Siliguri Sub-station 2.2.2016 269/TT/2020 (Chukka TS) 1.4.1992 Used as spare 3 Asset III: Replacement of 315 MVA 400/220 Kv ICT I with 500 MVA 400/220 kV ICT at Patna Substation 24.9.2016 86/TT/2020 (Kahalgaon Stage II Phase-I) 1.11.2007 Used as spare 4 Asset IV: Replacement of 315 MVA 400/220 kV ICT II with 500 MVA 400/220 kV ICT at Patna Sub-station 17.2.2019 1.1.2008 Used as spare 5 Asset V: Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Pusauli Sub-station 3.4.2016 390/TT/2019 (Bihar grid Strengthening scheme) 1.11.2004 Diverted and used at Durgapur Substation under ERSS XVII Part B project (Petition to be filed) 6 Asset VI: Replacement of 315 MVA 400/220kV ICT II with 500 MVA 400/220 kV ICT at Purnea 30.9.2016 290/TT/2020 (TALA HEP) 1.6.2007 Diverted and used at Jamsedpur Sub-station under ERSS XII project (670/TT/2020) 7 Asset VII: Replacement of 1x 100 MVA (3rd) ICT with 1x160 MVA220/132 kV ICT at Purnea Sub-station 29.2.2016 246/TT/2019 (LILO of Purnea - Dalkola at Purnea) 1.11.2003 Used as spare 8 Asset-XXI: Replacement of 315 MVA 400/220kV ICT I with 500 MVA 400/220 kV ICT at Purnea Substation 13.7.2015 213/TT/2020 (LILO of Bongaigaon Malda TL at Purnea Substation) 1.11.2003 Used as spare

55. We have considered the submissions by the Petitioner. The Petiitoner has submitted that 100 MVA ICT at Baripada, 100 MVA ICT at Siliguri,315 MBA ICT-I&II at Patna, 100 MVA ICT-III at Patna,315 MVA ICT-1 at Purnea Sub-station have been kept as spare. The relevant extracts of the NRPC wherein the replaced ICT kept as spares is extracted as under:

Asset-I &II:

(i) Relavant extracts of the Minutes of Meeting of the 1 2014 Standing Committees Meeting on Power System planning in Eastern Region held at NRPC, New Delhi on 2.5.2014 is as follows:

“12. Augmentation of transformation capacity of 220/132 kV Birpara (PG) and Silliguri S/s (PG)

Director (SP& PA), CEA informed that as per Standing Committee Meeting (20.09.10) on Power System Planning for ER, augmentation of 220/132kV Silliguri and Birpara S/S has been carried out by addition of 1 no. 160 MVA ICT in parallel to existing 100MVA ICT under ERSS-IV. During 59th OCC, it was discussed that the transformation capacity of 100 MVA ICT at Silliguri (PG) is inadequate to cater to peak load of North Bengal and Sikkim because of degradation over its expected life span of 25 years. The condition of 100 MVA ICT at Birpara is also similar. Even after reconditioning at respective site, the condition of transformer has not improved. As per the decision taken in the 25th TCC/ERPC meeting held on 20-21 September, 2013, and after deliberation, members agreed to the following:

• Replacement of existing 100 MVA, 220/132 kV ICTs with 1X160 MVA, 220/132 kV ICT at Siliguri 220/132 kV sub-station of POWERGRID, along with necessary bay eqpt/protection system.

• Replacement of existing 100 MVA, 220/132kV ICTs with 1X160 MVA, 220/132 kV ICT at Birpara 220/132 kV sub-station of POWERGRID, along with necessary bay eqpt/protection system.

• The 100 MVA ICTs (2 nos.) may be kept as emergency spare for the time being.”

For Asset-VII

The extract of the same is as follows:

“11. Replacement of 1X100 MVA 220/132kV, 3rd ICT with 1X160 MVA, 220/132 kV ICT at Purnea 220/132 kV sub-station of POWERGRID, along with necessary bay eqpt/protection system

Director (SP& PA), CEA informed that 220/132 kV Purnea sub-station of POWERGRID is having 3 nos. ICTs, 2 of 160 MVA each and the 3rd one of 100 MVA. In view of increased power demand in the area and on request of BSPHCL, ERPC in its 25th meeting held on 20-21 September, 2013, approved replacement of 3rd 100 MVA ICT with 160 MVA ICT. 100 MVA ICT thus released shall be kept in the pool of spare ICTs. Members agreed.”

(ii) The Relevant extracts of the of the 2 Standing Committee Meeting (SCM) on Power System Planning in Eastern Region held on 27.8.2013 at NRPC, New Delhi is as follows:

For Assets-III, IV, and XXI

“11. Augmentation of Transformation capacity at the existing 400/220kV Jamshedpur (PG) and Sasaram (PG) sub-stations

BSPTCL's proposals for Augmentation of 400/220kV Transformation capacity at the Muzaffarpur, Sasaram, Purnea and Patna sub-stations of POWERGRID, and establishment of 220kV MTPS (Extn.)- Muzaffarpur (PG) D/C line (3rd & 4th Circuits)

POWERGRID stated with instances during May’13 that loading on each of the 400/220kV 2x315MVA ICTs at Sasaram had exceeded 250MW on several occasions with maximum loading of upto 305MW during May’13 and similarly, loading on each of the 400/220kV 2x315MVA ICTs at Jamshedpur (PG) had reached upto 210 MW.

In order to meet any eventuality due to failure of anyone of the ICTs at the above sub-stations, POWERGRID proposed for augmentation of transformation capacity at Jamshedpur and Sasaram.

In this context, Director, CEA mentioned that BSPTCL has proposed very recently some additional requirements for augmentation of transformation capacity at 400kV grid sub-stations of POWERGRID in Bihar viz. Muzaffarpur, Purnea, Pausali(Sasaram) and Patna. MD, BSPTCL explained that the peak demand in Bihar has already touched 2200 MW and it would be expected to cross 5000 MW by 2015-2016 due to rapid load growth in Bihar. Bihar has already taken up implementation of major transmission and distribution expansion Plan in the entire State grid. He added that in order to meet load growth being envisaged at various parts of the State including demand of Patna area, augmentation of 400/220kV transformation capacity from 2x315 MVA each at Muzaffarpur, Purnea, Pausali (Sasaram) and Patna sub-stations of POWERGRID to 2x500 MVA ICTs were recently proposed to CEA by BSPTCL.

About the above proposals of BSPTCL, CEA informed that augmentation of transformation capacity at Muzaffarpur (PG) with an additional 500 MVA, 400/220 kV ICT, was approved in the last SCM and it is under the process of implementation. With this, the 400/220kV sub-station capacity of Muzaffarpur would reach to 1130 MVA. It was felt that no further augmentation at this stage would be required at Muzaffarpur (PG) at this stage. Provision for augmentation of 2x315 MVA 400/220kV ICTs at Sasaram by replacement with 2x500 MVA ICTs, due to severe space constraint at Sasaram, has been already included in the agenda for concurrence.

POWERGRID stated that there is also severe space constraint at Purnea, Pusauli (Sasaram) & Patna sub-stations for addition of transformer(s), and only available alternative would be to replace existing 2x315 MVA ICTs by 2x500 MVA ICTs. 315 MVA ICTs thus released from Purnea, Pusauli and Patna could be kept in the pool of regional spares.

CEA stated that there would be number of spare 315 MVA ICTs and these ICTs should not go waste. POWERGRID stated that these ICTs could be utilized at any other places after refurbishment. MD, BSPTCL suggested that out of the 315 MVA ICTs emerging as spare, two ICTs (one at Sasaram and one at Patna) could be kept as stand-by/spare, and one could be utilized for augmentation of transformation capacity at Jamshedpur (PG) as 3rd ICT. AGM, NTPC stated that at present there is only 1x315 MVA 400/22 kV ICT at Farakka and stressed upon the need for augmentation of the transformation capacity. On query about the space availability for an additional ICT at Farakka, NTPC confirmed that space for 2nd ICT would be made available by shifting the location of 50MVAR bus reactor. It was decided that one 315 MVA ICT released after replacement of ICTs at Purnea, Pusauli and Patna would be installed as additional (2nd ICT) at Farakka.

After deliberations, the following were decided and agreed.

• Replacement of 2x315 MVA, 400/220 kV ICTs at Purnea (PG) by 2x500 MVA, 400/220 kV ICTs.

• Replacement of 2x315 MVA, 400/220 kV ICTs at Pausali (Sasaram (PG) by 2x500 MVA, 400/220 kV ICTs, and one of the 2x315 MVA ICTs being released to be kept as stand-by/spare.

• Replacement of 2x315 MVA, 400/220 kV ICT at Patna (POWERGRID) by 2x500 MVA, 400/220 kV ICT, and one of the 2x315 MVA ICTs being released to be kept as stand-by.

• Shifting of 1X315 MVA, 400/220 kV ICT from any suitable location (after replacement by 1x500MVA ICT) to Jamshedpur 400/220 kV S/S (PG) as 3rd ICT and installation of the same along with associated bays.

• Shifting of 1X315 MVA, 400/220 kV ICT from any suitable location (after replacement by 1x500MVA ICT) to Farakka STPS as 2nd ICT and installation of the same along with associated bays.

• Thus, out of the 6 nos. 315 MVA 400/220kV ICTs to be released from Purnea, Patna & Pusauli substations, one would be kept as spare at Patna and one as spare at Pusauli, one to be diverted and utilized at Jamshedpur as 3rd ICT, one to be diverted and installed at Farakka as 2nd ICT, and remaining ICTs would be utilized as Regional Spare.

As regards the proposal of BSPTCL for establishment of 220 kV MTPS (Extn.)-Muzaffarpur (PG) D/C line (3rd & 4th circuit), this requirement was agreed and it was decided that the line, including the associated bays, would be constructed by BSPTCL at their own cost.”

56. In view of the appproval of the SCM and RPC, the following has been approved with respect of Asset-I, II, III, IV, V, VII and XXI:

Sl. No. Asset COD Original Petition/Project under Old ICT claimed Old ICT COD Decision of the Commission 1 Asset-I: Replacement of existing 100 MVA, 220/132 ICT with 01 No. 1X160 MVA ICT at 220/132kV Birpara Sub-station alongwith associated bays at Birpara Sub-station 1.1.2016 269/TT/2020 (Chukka TS) 1.4.1992 As per the approval of the 1st Standing Committee Meeting on Power System planning held on 2.5.2014, 100 MVA ICT at Birpara has been approved as Spare ICT. 2 Asset-II: Replacement of existing 100 MVA, 220/132 ICT with 1x160 MVA, 220/132 kV ICT at 220/132 kV Siliguri Sub-station along with necessary bay eqpt/protection system at Siliguri Substation. 2.2.2016 269/TT/2020 (Chukka TS) 1.4.1992 As per the approval of the 1st Standing Committee Meeting on Power System planning held on 2.5.2014, 100 MVA ICT at Siliguri has been approved as Spare ICT. 3 Asset III: Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Patna Sub-station 24.9.2016 86/TT/2020 (Kahalgaon Stage II Phase-I) 1.11.2007 As per the approval of 2nd Standing Committee Meeting (SCM) on Power System Planning in Eastern Region held on 27.8.2013, 315 MVA ICT at Patna Sub-station has been approved as Spare. 4 Asset IV: Replacement of 315 MVA 400/220 kV ICT II with 500 MVA 400/220 kV ICT at Patna Sub-station 17.2.2019 1.1.2008 As per the approval of the 2nd Standing Committee Meeting (SCM) on Power System Planning in Eastern Region held on 27.8.2013, 351 MVA ICT-II at Patna Sub-station has been approved as Spare. 5 Asset V: Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Pusauli Sub-station 3.4.2016 390/TT/2019 (Bihar grid Strengthening scheme) 1.11.2004 The Commisison vide order dated 15.7.2022 has approved the de-capitalisation of 315 MVA ICT as 26.2.2016. The Petiitoner has diverted this ICT to Durgapur and the Re-capitalisation of 315 MVA ICT will be dealth with as when the Petitiner files the Petition. 6 Asset VII: Replacement of 1x 100 MVA (3rd) ICT with 1x160 MVA220/132 kV ICT at Purnea Sub-station 29.2.2016 246/TT/2019 (LILO of Purnea - Dalkola at Purnea) 1.11.2003 As per the approval of of the 1st Standing Committee Meeting on Power System planning held on 2.5.2014, 100 MVA ICT at Purnea has been approved as Spare ICT. 7 Asset-XXI: Replacement of 315 MVA 400/220 kV ICT I with 500 MVA 400/220 kV ICT at Purnea Substation 13.7.2015 213/TT/2020 (LILO of Bongaigaon Malda TL at Purnea S/S) 1.11.2003 2nd Standing Committee Meeting (SCM) on Power System Planning in Eastern Region held on 27.8.2013

57. The Petitioner has claimed re-capitalisation of “400/220 kV 315 MVA ICT at Purnea Sub-station” which was de-capitalised vide order dated 5.3.2021 in Petition No. 290/TT/2020. The relevant portion of order dated 5.3.2021 in Petition No. 290/TT/2020 is extracted as follows:

“51. We have considered the submissions of the Petitioner and BRPL. The Petitioner has de-capitalized an amount of Rs. 878.63 lakh in 2016-2017, Rs. 303.94 lakh in 2017-2018 and Rs. 779.32 lakh in 2018-2019 and re-capitalised them under the projects ERSS-XII, NRSS-XXX and NRSS-XL respectively. Regulation 9(6) of the 2014 Tariff Regulations inter alia provide that the assets not in use or de-capitalised assets shall be removed from the capital cost of the existing and new projects. Regulation 9(6) of the 2014 Tariff Regulations is reproduced as under:-

“(6) The following shall be excluded or removed from the capital cost of the existing and new project:

(a) The assets forming part of the project, but not in use;

(b) Decapitalisation of Asset;

(c) In case of hydro generating station 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 two stage transparent process of bidding; and

(d) the proportionate cost of land which is being used for generating power from generating station based on renewable energy:

Provided that 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 shall be excluded from the Capital Cost for the purpose of computation of interest on loan, return on equity and depreciation;”

52. As per submissions of the Petitioner, the dismantling of 400/220 kV 315 MVA ICT at Purnea Sub-station, 50 MVAR line reactor at Mandola Sub-station and 400/220 kV 315 MVA ICT at Lucknow Sub-station started from 16.8.2016, 8.1.2015 and 25.1.2019 respectively and thereafter, they have been recapitalised w.e.f. 16.12.2017, 28.9.2017 and 3.8.2020 respectively. In terms of Regulation 9(6) of the 2014 Tariff Regulations, these assets are not in use between the period of decapitalisation and subsequent recapitalisation. Accordingly, 400/220 kV 315 MVA ICT at Purnea Sub-station was not in use from 16.8.2016 to 16.12.2017; 50 MVAR line reactor at Mandola Sub-station was not in use from 8.1.2015 to 28.9.2017; and 400/220 kV 315 MVA ICT at Lucknow Sub-station was not in use from 25.1.2019 to 3.8.2020. Hence, the transmission charges from the actual date of de-capitalisation to the actual date of re-capitalisation are not allowed. It is also observed that the Petitioner had started the work of removing 50 MVAR line reactor at Mandola substation from 8.1.2015 but has deducted the book value of de-capitalised asset in the year 2017-2018 from the gross block of Combined Asset-II. Since the 50 MVAR line reactor at Mandola Sub-station is not in use from 8.1.2015, we have considered the de-capitalisation in the year 2014-2015 and truing up of transmission tariff of Combined Asset-II has been done accordingly.

53. The Petitioner has submitted that carrying cost from the date of decapitalisation to the date of recapitalisation has been claimed in the petition where it has been recapitalised. The Petitioner's claim in respect of carrying cost shall be considered after prudence check of the claim for recapitalisation in the respective petitions.”

58. We have considered the date of de-capitalisation in respect of “400/220 kV 315 MVA ICT at Purnea Sub-station” as 16.8.2016 in Petition No. 290/TT/2020 and date of re-capitalisation as 16.12.2017 in the instant petition. The re-capitalisation has been considered as per the following details:

Work/Equipment to be recapitalised Original book value of the Asset being re-capitalised (Rs. in lakh) Debt Equity ratio at the time of capitalisation Cumulative Depreciation corresponding to re-capitalisation date (Rs. in lakh) Cumulative repayment of loan corresponding to re-capitalisation (Rs. in lakh) 400/220 kV 315MVA ICT at Purnea Substation 878.63 71.41: 28.59 434.09 413.70

59. Further, the Petitioner has claimed the carrying cost of Rs. 17.28 lakh for the period between 29.9.2016 to 16.12.2017 and submitted the details as follows:

400/220 kV 315 MVA ICT at Purnea Sub-station Loan Amount (Rs. in lakh) Interest rate (%) Weighted rate of interest (%) Bond XV 407.00 6.68 6.83 Bond XVI 220.43 7.1 Total Loan Decap 627.43 Loan repay 418.99 Net loan 208.44 Carrying cost= Net loan * Weighted average rate of interest Carrying cost for 2016-2017 is Rs. 7.14 lakh Carrying cost for 2017-2018 is Rs. 10.14 lakh Total Carrying cost is Rs. 17.28 lakh

60. We have considered the submissions of the Petitioner. We are of the view that since, there is no specific provision in the 2014 Tariff Regulations to allow the carrying cost, we are not inclined to allow carrying cost. Therefore, Rs. 17.28 lakh towards carrying cost is not allowed.

Additional Capital Expenditure (ACE)

61. The Petitioner has submitted that ACE claimed up to 31.3.2019 for Asset-I to Asset-XX, and ACE up to 31.3.2018 for Asset-XXI are within cut-off date and hence have been claimed under Regulation 14(1)(i) of the 2014 Tariff Regulations; the ACE claimed for 2018-2019 for Asset-XXI is beyond cut-off date and is claimed under Regulation 14(2)(iv) of the 2014 Tariff Regulations.

62. The Petitioner has claimed the following ACE for the assets covered in the instant petition and has submitted the Auditor's Certificates in support of the same:

(Rs. in lakh)

Assets ACE 2014-2019 (as per auditor's certificate) 2015-16 2016-17 2017-2018 2018-2019 Asset-I 629.14 112.37 27.47 0.00 Asset-II 521.49 169.94 50.00 0.00 Asset-III 0.00 54.86 305.57 0.00 Asset-IV 0.00 0.00 0.00 2.64 Asset-V 0.00 1531.02 78.61 0.00 Asset-VI 0.00 126.55 199.92 28.16 Asset-VII 73.96 152.44 43.91 174.06 Asset-VIII 0.00 558.67 185.68 232.73 Aset-IX 0.00 974.02 577.51 453.13 Asset-X 0.00 57.49 275.02 71.29 Asset-XI 0.00 3064.81 269.43 443.46 Asset-XII 0.00 46.81 173.28 101.79 Asset-XIII 0.00 0.00 173.28 101.79 Asset-XIV 0.00 246.82 369.45 234.26 Asset-XV 0.00 0.00 132.48 348.99 Asset-XVI 0.00 0.00 95.12 361.02 Asset-XVII 0.00 0.00 41.16 91.78 Asset-XVIII 0.00 0.00 230.07 127.86 Asset-XIX 0.00 0.00 0.00 0.00 Asset-XX 0.00 0.00 0.00 249.86 Asset-XXI 161.38 130.97 179.68 25.90

63. The transmission assets have achieved the COD during 2014-2019 tariff period and, accordingly, cut-off date for the Individual assets is as follows:

Assets COD Date Cut-off date Asset-I 1.1.2016 31.3.2019 Asset-II 2.2.2016 31.3.2019 Asset-III 24.9.2016 31.3.2019 Asset-IV 17.2.2019 31.3.2022 Asset-V 3.4.2016 31.3.2019 Asset-VI 30.9.2016 31.3.2019 Asset-VII 29.2.2016 31.3.2019 Asset-VIII 2.10.2016 31.3.2019 Asset-IX 2.10.2016 31.3.2019 Asset-X 29.8.2016 31.3.2019 Asset-XI 6.10.2016 31.3.2019 Asset-XII 20.10.2016 31.3.2019 Asset-XIII 10.3.2017 31.3.2020 Asset-XIV 30.11.2016 31.3.2019 Asset-XV 16.12.2017 31.3.2020 Asset-XVI 12.3.2018 31.3.2021 Asset-XVII 29.3.2018 31.3.2021 Asset-XVIII 14.2.2018 31.3.2021 Asset-XIX 25.9.2017 31.3.2020 Asset-XX 30.9.2018 31.3.2021 Asser-XXI 13.7.2015 31.3.2018

64. We have considered the submissions made by 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 the Regulation 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations. The actual ACE allowed in respect of the transmission assets is as follows:

(Rs. in lakh)

Asset-I Particulars Actual ACE 2016-2017 2017-18 2015-16 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 629.14 110.10 27.47 0.00 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 2.24 0.00 0.00 Total 629.14 112.34 27.47 0.00

(Rs. in lakh)

Asset-II Particulars Actual ACE 2016-2017 2017-18 2015-16 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 521.49 166.76 50.00 0.00 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 3.12 0.00 0.00 Total 521.49 169.88 50.00 0.00

(Rs. in lakh)

Asset-III Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 54.77 292.33 0.00 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.09 13.09 0.00 Total 0.00 54.86 305.42 0.00

(Rs. in lakh)

Asset-IV Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 0.00 0.00 0.00 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00

(Rs. in lakh)

Asset-V Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 1527.98 78.61 0.00 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 3.05 0.00 0.00 Total 0.00 1531.03 78.61 0.00

(Rs. in lakh)

Asset-VI Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 125.33 185.01 28.16 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 1.24 14.72 0.00 Total 0.00 126.57 199.73 28.16

(Rs. in lakh)

Asset-VII Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 72.67 141.39 43.91 174.06 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 1.23 11.08 0.00 0.00 Total 73.90 152.47 43.91 174.06

(Rs. in lakh)

Asset-VIII Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 558.46 174.41 232.73 Less: Initial Spares disallowed 0.00 22.06 0.00 0.00 Add: IDC discharge 0.00 0.22 11.13 0.00 Total 0.00 536.62 185.54 232.73

(Rs. in lakh)

Asset-IX Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 973.67 561.22 453.13 Less: Initial Spares disallowed 0.00 0.00 12.83 0.00 Add: IDC discharge 0.00 0.36 16.09 0.00 Total 0.00 974.03 564.48 453.13

(Rs. in lakh)

Asset-X Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 56.72 274.51 71.29 Less: Initial Spares disallowed 0.00 2.00 2.01 0.00 Add: IDC discharge 0.00 0.68 0.78 0.00 Total 0.00 55.40 273.28 71.29

(Rs. in lakh)

Asset-XI Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 3064.65 234.40 443.46 Less: Initial Spares disallowed 0.00 22.46 22.45 0.00 Add: IDC discharge 0.00 0.16 34.95 0.00 Total 0.00 3042.35 246.90 443.46

(Rs. in lakh)

Asset-XII Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 46.26 0.00 0.00 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.55 0.00 0.00 Total 0.00 46.81 0.00 0.00

(Rs. in lakh)

Asset-XIII Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 0.00 307.30* 203.58* Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.54 39.06# 0.00 Total 0.00 0.54 346.36 203.58

*Including ACE allowed for Asset-XII.

#Including IDC discharge for Asset-XII.

(Rs. in lakh)

Asset-XIV Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 244.64 336.32 234.26 Less: Initial Spares disallowed 0.00 10.30 10.29 0.00 Add: IDC discharge 0.00 2.22 32.92 0.00 Total 0.00 236.56 358.95 234.26

(Rs. in lakh)

Asset-XV Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 0.00 132.48 348.99 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.00 0.00 0.00 Total 0.00 0.00 132.48 348.99

(Rs. in lakh)

Asset-XVI Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 0.00 95.12 292.95 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.00 0.00 67.50 Total 0.00 0.00 95.12 360.45

(Rs. in lakh)

Asset-XVII Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 0.00 41.16 91.78 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.00 0.00 0.00 Total 0.00 0.00 41.16 91.78

(Rs. in lakh)

Asset-XVIII Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 0.00 230.07 113.54 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.00 0.00 14.18 Total 0.00 0.00 230.07 127.72

(Rs. in lakh)

Asset-XIX Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 0.00 0.00 0.00 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00

(Rs. in lakh)

Asset-XX Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 0.00 0.00 0.00 249.86 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 249.86

(Rs. in lakh)

Asset-XXI Particulars Actual ACE 2015-16 2016-17 2017-2018 2018-2019 ACE allowed under Regulations 14(1)(i) and 14(2)(iv) of the 2014 Tariff Regulations 161.38 125.34 179.68 25.90 Less: Initial Spares disallowed 0.00 0.00 0.00 0.00 Add: IDC discharge 0.00 5.63 0.00 0.00 Total 161.38 130.97 179.68 25.90

65. Accordingly, capital cost allowed as on 31.3.2019 after including ACE in respect of the transmission assets is as follows:

(Rs. in lakh)

Capital Cost allowed as on COD ACE allowed Capital Cost as on 31.3.2019 Assets 2015-16 2016-17 2017-2018 2018-2019 Asset-I 126.89 629.14 112.34 27.47 0.00 895.84 Asset-II 137.19 521.49 169.88 50.00 0.00 878.56 Asset-III 1248.45 0.00 54.86 305.42 0.00 1608.73 Asset-IV 976.23 0.00 0.00 0.00 0.00 976.23 Asset-V 202.10 0.00 1531.03 78.61 0.00 1811.74 Asset-VI 1558.35 0.00 126.57 199.73 28.16 1912.81 Asset-VII 542.21 73.90 152.47 43.91 174.06 986.55 Asset-VIII 2203.38 0.00 536.62 185.54 232.73 3158.27 Asset-IX 3595.91 0.00 974.03 564.48 453.13 5587.55 Asset-X 179.70 0.00 55.40 273.28 71.29 579.67 Asset-XI 1541.90 0.00 3042.34 246.90 443.46 5274.60 Asset-XII 1554.29 0.00 46.81 0.00 0.00 1601.10* Asset-XIII 3204.24** 0.00 0.54 346.36 203.58 3754.72 Asset-XIV 2580.48 0.00 236.56 358.95 234.26 3410.25 Asset-XV 3319.57# 0.00 0.00 132.48 348.99 3801.04 Asset-XVI 4476.18 0.00 0.00 95.12 360.45 4931.75 Asset-XVII 475.54 0.00 0.00 41.16 91.78 608.48 Asset-XVIII 1293.80 0.00 0.00 230.07 127.72 1651.59 Asset-XIX 1399.79 0.00 0.00 0.00 0.00 1399.79 Asset-XX 842.14 0.00 0.00 0.00 249.86 1092.00 Asser-XXI 1248.03 161.38 130.97 179.68 25.90 1745.96

*Capital cost as on 9.3.2017

**Capital cost including the capital cost as on 9.3.2017 for Asset-XII #Capital cost including the re-capitalisation of Rs. 878.63 lakh

Debt-Equity Ratio

66. The Petitioner has claimed debt-equity ratio of 70:30 as on COD and for ACE post COD. The debt-equity ratio of 70:30 has been considered for capital cost as on COD and ACE during 2014-2019 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:

Asset-I Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 88.82 70.00 627.09 70.00 Equity 38.07 30.00 268.75 30.00 Total 126.89 100.00 895.84 100.00 Asset-II Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 96.03 70.00 614.99 70.00 Equity 41.16 30.00 263.56 30.00 Total 137.19 100.00 878.56 100.00 Asset-III Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 873.91 70.00 1126.11 70.00 Equity 374.53 30.00 482.62 30.00 Total 1248.45 100.00 1608.73 100.00 Asset-IV Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 683.36 70.00 683.36 70.00 Equity 292.87 30.00 292.87 30.00 Total 976.23 100.00 976.23 100.00 Asset-V Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 141.47 70.00 1268.23 70.00 Equity 60.63 30.00 543.51 30.00 Total 202.10 100.00 1811.74 100.00 Asset-VI Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 1090.84 70.00 1338.98 70.00 Equity 467.50 30.00 573.83 30.00 Total 1558.35 100.00 1912.81 100.00 Asset-VII Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 379.55 70.00 690.59 70.00 Equity 162.66 30.00 295.96 30.00 Total 542.21 100.00 986.55 100.00 Asset-VIII Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 1542.37 70.00 2210.79 70.00 Equity 661.01 30.00 947.48 30.00 Total 2203.38 100.00 3158.27 100.00 Asset-IX Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 2517.14 70.00 3911.29 70.00 Equity 1078.77 30.00 1676.26 30.00 Total 3595.91 100.00 5587.55 100.00 Asset-X Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 125.79 70.00 405.77 70.00 Equity 53.91 30.00 173.90 30.00 Total 179.70 100.00 579.67 100.00 Asset-XI Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 1079.33 70.00 3692.23 70.00 Equity 462.57 30.00 1582.38 30.00 Total 1541.90 100.00 5274.60 100.00 Asset-XII Amount as on COD (Rs. in lakh) (%) Amount as on 9.3.2017 (Rs. in lakh) (%) Debt 1088.00 70.00 1120.77 70.00 Equity 466.29 30.00 480.33 30.00 Total 1554.29 100.00 1601.10 100.00 Asset-XIII Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 2242.97 70.00 2628.31 70.00 Equity 961.27 30.00 1126.41 30.00 Total 3204.24 100.00 3754.72 100.00 Asset-XIV Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 1806.34 70.00 2387.19 70.00 Equity 774.15 30.00 1023.07 30.00 Total 2580.48 100.00 3410.25 100.00 Asset-XV* Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 2336.09 70.37 2673.12 70.33 Equity 983.48 29.63 1127.92 29.67 Total 3319.57 100.00 3801.04 100.00 Asset-XVI Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 3133.33 70.00 3452.23 70.00 Equity 1342.85 30.00 1479.52 30.00 Total 4476.18 100.00 4931.75 100.00 Asset-XVII Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 332.88 70.00 425.94 70.00 Equity 142.66 30.00 182.54 30.00 Total 475.54 100.00 608.48 100.00 Asset-XVIII Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 905.66 70.00 1156.12 70.00 Equity 388.14 30.00 495.48 30.00 Total 1293.80 100.00 1651.59 100.00 Asset-XIX Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 979.85 70.00 979.85 70.00 Equity 419.94 30.00 419.94 30.00 Total 1399.79 100.00 1399.79 100.00 Asset-XX Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 589.50 70.00 764.40 70.00 Equity 252.64 30.00 327.60 30.00 Total 842.14 100.00 1092.00 100.00 Asset-XXI Amount as on COD (Rs. in lakh) (%) Amount as on 31.3.2019 (Rs. in lakh) (%) Debt 873.62 70.00 1222.18 70.00 Equity 374.41 30.00 523.78 30.00 Total 1248.03 100.00 1745.96 100.00

*The debt-equity ratio of re-capitalisation is 71.41: 28.59

Depreciation

67. The Petitioner's claim towards depreciation in the instant petition has been found to be higher than the depreciation allowed in previous orders. The Petitioner has neither given any justification for claiming higher depreciation than that was allowed earlier nor made any specific prayer for allowing higher depreciation in the instant petition. It is observed that in previous orders, the depreciation for IT equipment was allowed @5.28%. The Petitioner now at the time of truing-up of the tariff of the 2014-2019 period has segregated the IT equipment cost from the Substation cost and has considered depreciation rate for IT Equipment @15% and NIL salvage value for IT Equipment as per the 2014 Tariff Regulations. A similar issue had come up in some earlier petitions filed by the Petitioner. In this regard, the Commission in 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 2009-2014 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 2009-2014 period was trued up and tariff for the 2014-2019 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 2009-2014 period was allowed, tariff of the 2009-2014 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 2014-2019 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 2014-2019 period. During the 2019-2024 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.”

68. 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 the 2014-2019 period. However, for the 2019-2024 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 of the 2019 Tariff Regulations. The gross block during the 2014-2019 tariff period has been depreciated at weighted average rate of depreciation (WAROD). WAROD at Annexure-I has been worked out after taking into account the depreciation rates of assets as specified in the 2014 Tariff Regulations and accordingly, depreciation allowed during 2014-2019 tariff period is as follows:

(Rs. in lakh)

Asset-I Particulars 2015-2016 (Pro-rata for 91 days) 2016-17 2017-2018 2018-2019 A Opening Gross Block 126.89 756.03 868.37 895.84 B Additional Capitalisation 629.14 112.34 27.47 0.00 C Closing Gross Block (A+B) 756.03 868.37 895.84 895.84 D Average Gross Block (A+C)/2 441.46 812.20 882.10 895.84 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 397.31 730.98 793.89 806.25 G Combined Depreciation during the year (D*E) 5.80 42.88 46.58 47.30 H Cumulative Depreciation at the end of the year 5.80 48.68 95.25 142.55 I Remaining Aggregated Depreciable Value 391.52 682.30 698.64 663.70

(Rs. in lakh)

Asset-II Particulars 2015-2016 (Pro-rata for 59 days) 2016-17 2017-2018 2018-2019 A Opening Gross Block 137.19 658.68 828.56 878.56 B Additional Capitalisation 521.49 169.88 50.00 0.00 C Closing Gross Block (A+B) 658.68 828.56 878.56 878.56 D Average Gross Block (A+C)/2 397.94 743.62 853.56 878.56 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 358.14 669.26 768.20 790.70 G Combined Depreciation during the year (D*E) 3.39 39.26 45.07 46.39 H Cumulative Depreciation at the end of the year 3.39 42.65 87.72 134.11 I Remaining Aggregated Depreciable Value 354.75 626.61 680.48 656.59

(Rs. in lakh)

Asset-III Asset-IV Particulars 2016-2017 (Pro-rata for 189 days) 2017-2018 2018-2019 2018-2019 (Pro-rata for 43 days) A Opening Gross Block 1248.45 1303.31 1608.73 976.23 B Additional Capitalisation 54.86 305.42 0.00 0.00 C Closing Gross Block (A+B) 1303.31 1608.73 1608.73 976.23 D Average Gross Block (A+C)/2 1275.88 1456.02 1608.73 976.23 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 1148.29 1310.42 1447.85 878.60 G Combined Depreciation during the year (D*E) 34.88 76.88 84.94 6.07 H Cumulative Depreciation at the end of the year 34.88 111.76 196.70 6.07 I Remaining Aggregated Depreciable Value 1113.41 1198.66 1251.15 872.53

(Rs. in lakh)

Asset-V Particulars 2016-2017 (Pro-rata for 363 days) 2017-2018 2018-2019 A Opening Gross Block 202.10 1733.13 1811.74 B Additional Capitalisation 1531.03 78.61 0.00 C Closing Gross Block (A+B) 1733.13 1811.74 1811.74 D Average Gross Block (A+C)/2 967.62 1772.44 1811.74 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 870.85 1595.19 1630.57 G Combined Depreciation during the year (D*E) 50.81 93.58 95.66 H Cumulative Depreciation at the end of the year 50.81 144.39 240.05 I Remaining Aggregated Depreciable Value 820.04 1450.80 1390.51

(Rs. in lakh)

Asset-VI Particulars 2016-2017 (Pro-rata for 183 days) 2017-2018 2018-2019 A Opening Gross Block 1558.35 1684.92 1884.65 B Additional Capitalisation 126.57 199.73 28.16 C Closing Gross Block (A+B) 1684.92 1884.65 1912.81 D Average Gross Block (A+C)/2 1621.63 1784.79 1898.73 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 1459.47 1606.31 1708.86 G Combined Depreciation during the year (D*E) 42.93 94.24 100.25 H Cumulative Depreciation at the end of the year 42.93 137.17 237.42 I Remaining Aggregated Depreciable Value 1416.54 1469.14 1471.44

(Rs. in lakh)

Asset-VII Particulars 2015-2016 (Pro-rata for 32 days) 2016-17 2017-2018 2018-2019 A Opening Gross Block 542.21 616.11 768.58 812.49 B Additional Capitalisation 73.90 152.47 43.91 174.06 C Closing Gross Block (A+B) 616.11 768.58 812.49 986.55 D Average Gross Block (A+C)/2 579.16 692.34 790.53 899.52 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 521.24 623.11 711.48 809.57 G Combined Depreciation during the year (D*E) 2.67 36.56 41.74 47.49 H Cumulative Depreciation at the end of the year 2.67 39.23 80.97 128.46 I Remaining Aggregated Depreciable Value 518.57 583.88 630.51 681.10

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 A Opening Gross Block 2203.38 2740.00 2925.54 B Additional Capitalisation 536.62 185.54 232.73 C Closing Gross Block (A+B) 2740.00 2925.54 3158.27 D Average Gross Block (A+C)/2 2471.69 2832.77 3041.90 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 2224.52 2549.49 2737.71 G Combined Depreciation during the year (D*E) 64.72 149.57 160.61 H Cumulative Depreciation at the end of the year 64.72 214.29 374.90 I Remaining Aggregated Depreciable Value 2159.80 2335.20 2362.81

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 A Opening Gross Block 3595.91 4569.94 5134.42 B Additional Capitalisation 974.03 564.48 453.13 C Closing Gross Block (A+B) 4569.94 5134.42 5587.55 D Average Gross Block (A+C)/2 4082.93 4852.18 5360.99 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 3674.64 4366.96 4824.89 G Combined Depreciation during the year (D*E) 106.90 256.20 283.06 H Cumulative Depreciation at the end of the year 106.90 363.10 646.16 I Remaining Aggregated Depreciable Value 3567.73 4003.87 4178.73

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 A Opening Gross Block 179.70 235.10 508.38 B Additional Capitalisation 55.40 273.28 71.29 C Closing Gross Block (A+B) 235.10 508.38 579.67 D Average Gross Block (A+C)/2 207.40 371.74 544.02 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 186.66 334.56 489.62 G Combined Depreciation during the year (D*E) 6.45 19.63 28.72 H Cumulative Depreciation at the end of the year 6.45 26.08 54.80 I Remaining Aggregated Depreciable Value 180.21 308.49 434.82

(Rs. in lakh)

Asset-XI Asset-XII Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 2016-2017 (Pro-rata for 141 days) A Opening Gross Block 1541.90 4584.24 4831.14 1554.29 B Additional Capitalisation 3042.34 246.90 443.46 46.81 C Closing Gross Block (A+B) 4584.24 4831.14 5274.60 1601.10 D Average Gross Block (A+C)/2 3063.07 4707.69 5052.87 1577.70 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 5.29 F Aggregated Depreciable Value (D*90%) 2756.76 4236.92 4547.59 1419.93 G Combined Depreciation during the year (D*E) 78.43 248.57 266.79 32.24 H Cumulative Depreciation at the end of the year 78.43 326.99 593.79 32.24 I Remaining Aggregated Depreciable Value 2678.33 3909.93 3953.80 1387.69

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 A Opening Gross Block 3204.24 3204.78 3551.14 B Additional Capitalisation 0.54 346.36 203.58 C Closing Gross Block (A+B) 3204.78 3551.14 3754.72 D Average Gross Block (A+C)/2 3204.51 3377.96 3652.93 E Weighted average rate of Depreciation (WAROD) (%) 5.29 5.29 5.29 F Aggregated Depreciable Value (D*90%) 2884.06 3040.17 3287.64 G Combined Depreciation during the year (D*E) 10.22 178.71 193.23 H Cumulative Depreciation at the end of the year 10.22 188.93 382.16 I Remaining Aggregated Depreciable Value 2873.84 2851.23 2905.48

(Rs. in lakh)

Asset-XIV Particulars 2016-2017 (Pro-rata for days) 2017-2018 2018-2019 A Opening Gross Block 2580.48 2817.04 3175.99 B Additional Capitalisation 236.56 358.95 234.26 C Closing Gross Block (A+B) 2817.04 3175.99 3410.25 D Average Gross Block (A+C)/2 2698.76 2996.52 3293.12 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 2428.89 2696.87 2963.81 G Combined Depreciation during the year (D*E) 47.63 158.22 173.88 H Cumulative Depreciation at the end of the year 47.63 205.84 379.72 I Remaining Aggregated Depreciable Value 2381.26 2491.02 2584.09

(Rs. in lakh)

Asset-XV Asset-XVI Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 2017-2018 (Pro-rata for 20 days) 2018-2019 A Opening Gross Block 3319.57 3452.05 4476.18 4571.30 B Additional Capitalisation 132.48 348.99 95.12 360.45 C Closing Gross Block (A+B) 3452.05 3801.04 4571.30 4931.75 D Average Gross Block (A+C)/2 3385.81 3626.54 4523.74 4751.52 E Weighted average rate of Depreciation (WAROD) (%) 5.28% 5.28% 5.28 5.28 F Aggregated Depreciable Value (D*90%) 3047.23 3263.89 4071.37 4276.37 G Combined Depreciation during the year (D*E) 51.92 191.48 13.09 250.88 H Cumulative Depreciation at the end of the year 486.01 677.49 13.09 263.97 I Remaining Aggregated Depreciable Value 2561.22 2586.40 4058.28 4012.40

(Rs. in lakh)

Asset-XVII Asset-XVIII Particulars 2017-2018 (Pro-rata for 3 days) 2018-2019 2017-2018 (Pro-rata for 46 days) 2018-2019 A Opening Gross Block 475.54 516.70 1293.80 1523.87 B Additional Capitalisation 41.16 91.78 230.07 127.72 C Closing Gross Block (A+B) 516.70 608.48 1523.87 1651.59 D Average Gross Block (A+C)/2 496.12 562.59 1408.84 1587.73 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 446.51 506.33 1267.95 1428.96 G Combined Depreciation during the year (D*E) 0.22 29.70 9.37 83.83 H Cumulative Depreciation at the end of the year 0.22 29.92 9.37 93.21 I Remaining Aggregated Depreciable Value 446.29 476.41 1258.58 1335.75

(Rs. in lakh)

Asset-XIX Asset-XX Particulars 2017-2018 (Pro-rata for 188 days) 2018-2019 2018-2019 (Pro-rata for 183 days) A Opening Gross Block 1399.79 1399.79 842.14 B Additional Capitalisation 0.00 0.00 249.86 C Closing Gross Block (A+B) 1399.79 1399.79 1092.00 D Average Gross Block (A+C)/2 1399.79 1399.79 967.07 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 1259.81 1259.81 870.36 G Combined Depreciation during the year (D*E) 38.07 73.91 25.60 H Cumulative Depreciation at the end of the year 38.07 111.98 25.60 I Remaining Aggregated Depreciable Value 1221.74 1147.83 844.76

(Rs. in lakh)

Asset-XXI Particulars 2015-2016 (Pro-rata for 263 days) 2016-17 2017-2018 2018-2019 A Opening Gross Block 1248.03 1409.41 1540.38 1720.06 B Additional Capitalisation 161.38 130.97 179.68 25.90 C Closing Gross Block (A+B) 1409.41 1540.38 1720.06 1745.96 D Average Gross Block (A+C)/2 1328.72 1474.90 1630.22 1733.01 E Weighted average rate of Depreciation (WAROD) (%) 5.28 5.28 5.28 5.28 F Aggregated Depreciable Value (D*90%) 1195.85 1327.41 1467.20 1559.71 G Combined Depreciation during the year (D*E) 50.41 77.87 86.08 91.50 H Cumulative Depreciation at the end of the year 50.41 128.29 214.36 305.87 I Remaining Aggregated Depreciable Value 1145.44 1199.12 1252.83 1253.84

Interest on Loan (IoL)

69. The Petitioner has claimed the weighted average interest rate of 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.

70. The Respondent, BSPHCL has submitted that the 2014 Tariff Regulations do not permit change in interest rate due to floating rate of interest.

71. In response, the Petitioner has submitted that in the tariff calculation for 2014-2019 tariff period, interest on loan has been calculated on the basis of actual rate of interest of various loan deployed for each year.

72. We have considered the submissions of the Petitioner and BSPHCL. The details of IoL approved are as follows:

(Rs. in lakh)

Asset-I Particulars 2015-2016 (Pro-rata for 91 days) 2016-17 2017-2018 2018-2019 A Gross Normative Loan 88.82 529.22 607.86 627.09 B Cumulative Repayments upto Previous year 0.00 5.80 48.68 95.25 C Net Loan-Opening (A-B) 88.82 523.43 559.18 531.84 D Addition due to Additional Capitalization 440.40 78.64 19.23 0.00 E Repayment during the year 5.80 42.88 46.58 47.30 F Net Loan-Closing (C+D-E) 523.43 559.18 531.84 484.54 G Average Loan (C+F)/2 306.13 541.30 545.51 508.19 H Weighted Average Rate of Interest on Loan (%) 9.22 9.09 8.30 8.10 I Interest on Loan (G*H) 7.02 49.22 45.30 41.18

(Rs. in lakh)

Asset-II Particulars 2015-2016 (Pro-rata for 59 days) 2016-17 2017-2018 2018-2019 A Gross Normative Loan 96.03 461.08 579.99 614.99 B Cumulative Repayments upto Previous year 0.00 3.39 42.65 87.72 C Net Loan-Opening (A-B) 96.03 457.69 537.34 527.27 D Addition due to Additional Capitalization 365.04 118.92 35.00 0.00 E Repayment during the year 3.39 39.26 45.07 46.39 F Net Loan-Closing (C+D-E) 457.69 537.34 527.27 480.89 G Average Loan (C+F)/2 276.86 497.52 532.31 504.08 H Weighted Average Rate of Interest on Loan (%) 9.15 9.01 8.28 8.10 I Interest on Loan (G*H) 4.09 44.85 44.07 40.83

(Rs. in lakh)

Asset-III Asset-IV Particulars 2016-2017 (Pro-rata for 189 days) 2017-2018 2018-2019 2018-2019 (Pro-rata for 43 days) A Gross Normative Loan 873.91 912.32 1126.11 683.36 B Cumulative Repayments upto Previous year 0.00 34.88 111.76 0.00 C Net Loan-Opening (A-B) 873.91 877.43 1014.35 683.36 D Addition due to Additional Capitalization 38.40 213.79 0.00 0.00 E Repayment during the year 34.88 76.88 84.94 6.07 F Net Loan-Closing (C+D-E) 877.43 1014.35 929.41 677.29 G Average Loan (C+F)/2 875.67 945.89 971.88 680.32 H Weighted Average Rate of Interest on Loan (%) 8.00 7.96 7.91 8.21 I Interest on Loan (G*H) 36.26 75.30 76.91 6.58

(Rs. in lakh)

Asset-V Particulars 2016-2017 (Pro-rata for 363 days) 2017-2018 2018-2019 A Gross Normative Loan 141.47 1213.20 1268.23 B Cumulative Repayments upto Previous year 0.00 50.81 144.39 C Net Loan-Opening (A-B) 141.47 1162.39 1123.83 D Addition due to Additional Capitalization 1071.73 55.03 0.00 E Repayment during the year 50.81 93.58 95.66 F Net Loan-Closing (C+D-E) 1162.39 1123.83 1028.17 G Average Loan (C+F)/2 651.93 1143.11 1076.00 H Weighted Average Rate of Interest on Loan (%) 8.30 8.14 8.10 I Interest on Loan (G*H) 53.82 93.03 87.17

(Rs. in lakh)

Asset-VI Particulars 2016-2017 (Pro-rata for 183 days) 2017-2018 2018-2019 A Gross Normative Loan 1090.84 1179.45 1319.27 B Cumulative Repayments upto Previous year 0.00 42.93 137.17 C Net Loan-Opening (A-B) 1090.84 1136.52 1182.10 D Addition due to Additional Capitalization 88.61 139.82 19.71 E Repayment during the year 42.93 94.24 100.25 F Net Loan-Closing (C+D-E) 1136.52 1182.10 1101.56 G Average Loan (C+F)/2 1113.68 1159.31 1141.83 H Weighted Average Rate of Interest on Loan (%) 8.18 8.06 8.00 I Interest on Loan (G*H) 45.70 93.43 91.37

(Rs. in lakh)

Asset-VII Particulars 2015-2016 (Pro-rata for 32 days) 2016-17 2017-2018 2018-2019 A Gross Normative Loan 379.55 431.28 538.01 568.75 B Cumulative Repayments upto Previous year 0.00 2.67 39.23 80.97 C Net Loan-Opening (A-B) 379.55 428.60 498.78 487.78 D Addition due to Additional Capitalization 51.73 106.73 30.74 121.84 E Repayment during the year 2.67 36.56 41.74 47.49 F Net Loan-Closing (C+D-E) 428.60 498.78 487.78 562.12 G Average Loan (C+F)/2 404.07 463.69 493.28 524.95 H Weighted Average Rate of Interest on Loan (%) 8.95 8.80 8.29 8.16 I Interest on Loan (G*H) 3.16 40.78 40.89 42.83

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 A Gross Normative Loan 1542.37 1918.00 2047.88 B Cumulative Repayments upto Previous year 0.00 64.72 214.29 C Net Loan-Opening (A-B) 1542.37 1853.28 1833.59 D Addition due to Additional Capitalization 375.63 129.88 162.91 E Repayment during the year 64.72 149.57 160.61 F Net Loan-Closing (C+D-E) 1853.28 1833.59 1835.89 G Average Loan (C+F)/2 1697.82 1843.44 1834.74 H Weighted Average Rate of Interest on Loan (%) 8.52 8.11 7.99 I Interest on Loan (G*H) 71.76 149.46 146.57

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 A Gross Normative Loan 2517.14 3198.97 3594.10 B Cumulative Repayments upto Previous year 0.00 106.90 363.10 C Net Loan-Opening (A-B) 2517.14 3092.06 3231.00 D Addition due to Additional Capitalization 681.83 395.14 317.19 E Repayment during the year 106.90 256.20 283.06 F Net Loan-Closing (C+D-E) 3092.06 3231.00 3265.14 G Average Loan (C+F)/2 2804.60 3161.53 3248.07 H Weighted Average Rate of Interest on Loan (%) 8.54 8.10 7.97 I Interest on Loan (G*H) 118.76 256.05 258.76

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 A Gross Normative Loan 125.79 164.57 355.86 B Cumulative Repayments upto Previous year 0.00 6.45 26.08 C Net Loan-Opening (A-B) 125.79 158.12 329.79 D Addition due to Additional Capitalization 38.78 191.29 49.90 E Repayment during the year 6.45 19.63 28.72 F Net Loan-Closing (C+D-E) 158.12 329.79 350.96 G Average Loan (C+F)/2 141.95 243.95 340.37 H Weighted Average Rate of Interest on Loan (%) 8.66 8.12 8.03 I Interest on Loan (G*H) 7.25 19.81 27.35

(Rs. in lakh)

Asset-XI Asset-XII Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 2016-2017 (Pro-rata for 141 days) A Gross Normative Loan 1079.33 3208.97 3381.80 1088.00 B Cumulative Repayments upto Previous year 0.00 78.43 326.99 0.00 C Net Loan-Opening (A-B) 1079.33 3130.54 3054.81 1088.00 D Addition due to Additional Capitalization 2129.64 172.83 310.42 32.77 E Repayment during the year 78.43 248.57 266.79 32.24 F Net Loan-Closing (C+D-E) 3130.54 3054.81 3098.44 1088.53 G Average Loan (C+F)/2 2104.94 3092.68 3076.62 1088.27 H Weighted Average Rate of Interest on Loan (%) 7.89 7.74 7.75 8.23 I Interest on Loan (G*H) 80.49 239.47 238.33 34.61

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 A Gross Normative Loan 2242.97 2243.35 2485.80 B Cumulative Repayments upto Previous year 0.00 10.22 188.93 C Net Loan-Opening (A-B) 2242.97 2233.13 2296.87 D Addition due to Additional Capitalization 0.38 242.46 142.51 E Repayment during the year 10.22 178.71 193.23 F Net Loan-Closing (C+D-E) 2233.13 2296.87 2246.15 G Average Loan (C+F)/2 2238.05 2265.00 2271.51 H Weighted Average Rate of Interest on Loan (%) 8.20 8.12 8.07 I Interest on Loan (G*H) 11.06 183.91 183.30

(Rs. in lakh)

Asset-XIV Particulars 2016-2017 (Pro-rata for days) 2017-2018 2018-2019 A Gross Normative Loan 1806.34 1971.94 2223.21 B Cumulative Repayments upto Previous year 0.00 47.63 205.84 C Net Loan-Opening (A-B) 1806.34 1924.31 2017.36 D Addition due to Additional Capitalization 165.60 251.27 163.98 E Repayment during the year 47.63 158.22 173.88 F Net Loan-Closing (C+D-E) 1924.31 2017.36 2007.47 G Average Loan (C+F)/2 1865.32 1970.83 2012.41 H Weighted Average Rate of Interest on Loan (%) 7.90 7.78 7.74 I Interest on Loan (G*H) 49.28 153.39 155.75

(Rs. in lakh)

Asset-XV Asset-XVI Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 2017-2018 (Pro-rata for 20 days) 2018-2019 A Gross Normative Loan 2336.09 2428.83 3133.33 3199.92 B Cumulative Repayments upto Previous year 413.70 465.62 0.00 13.09 C Net Loan-Opening (A-B) 1922.39 1963.21 3133.33 3186.83 D Addition due to Additional Capitalization 92.74 244.29 66.59 252.31 E Repayment during the year 51.92 191.48 13.09 250.88 F Net Loan-Closing (C+D-E) 1963.21 2016.02 3186.83 3188.26 G Average Loan (C+F)/2 1942.80 1989.61 3160.08 3187.55 H Weighted Average Rate of Interest on Loan (%) 7.96% 8.01% 7.87 7.96 I Interest on Loan (G*H) 44.92 159.28 13.64 253.60

(Rs. in lakh)

Asset-XVII Asset-XVIII Particulars 2017-2018 (Pro-rata for 3 days) 2018-2019 2017-2018 (Pro-rata for 46 days) 2018-2019 A Gross Normative Loan 332.88 361.69 905.66 1066.71 B Cumulative Repayments upto Previous year 0.00 0.22 0.00 9.37 C Net Loan-Opening (A-B) 332.88 361.47 905.66 1057.34 D Addition due to Additional Capitalization 28.81 64.25 161.05 89.41 E Repayment during the year 0.22 29.70 9.37 83.83 F Net Loan-Closing (C+D-E) 361.47 396.02 1057.34 1062.91 G Average Loan (C+F)/2 347.18 378.75 981.50 1060.12 H Weighted Average Rate of Interest on Loan (%) 7.88 7.90 7.70 7.72 I Interest on Loan (G*H) 0.22 29.92 9.52 81.82

(Rs. in lakh)

Asset-XIX Asset-XX Particulars 2017-2018 (Pro-rata for 188 days) 2018-2019 2018-2019 (Pro-rata for 183 days) A Gross Normative Loan 979.85 979.85 589.50 B Cumulative Repayments upto Previous year 0.00 38.07 0.00 C Net Loan-Opening (A-B) 979.85 941.78 589.50 D Addition due to Additional Capitalization 0.00 0.00 174.90 E Repayment during the year 38.07 73.91 25.60 F Net Loan-Closing (C+D-E) 941.78 867.88 738.80 G Average Loan (C+F)/2 960.82 904.83 664.15 H Weighted Average Rate of Interest on Loan (%) 7.75 7.85 8.20 I Interest on Loan (G*H) 38.33 70.99 27.30

(Rs. in lakh)

Asset-XXI Particulars 2015-2016 (Pro-rata for 263 days) 2016-17 2017-2018 2018-2019 A Gross Normative Loan 873.62 986.59 1078.27 1204.05 B Cumulative Repayments upto Previous year 0.00 50.41 128.29 214.36 C Net Loan-Opening (A-B) 873.62 936.18 949.98 989.69 D Addition due to Additional Capitalization 112.97 91.68 125.78 18.13 E Repayment during the year 50.41 77.87 86.08 91.50 F Net Loan-Closing (C+D-E) 936.18 949.98 989.69 916.32 G Average Loan (C+F)/2 904.90 943.08 969.84 953.00 H Weighted Average Rate of Interest on Loan (%) 8.96 8.80 8.30 8.15 I Interest on Loan (G*H) 58.27 83.03 80.51 77.66

Return on Equity (RoE)

73. The Petitioner has claimed RoE for the transmission assets in terms of Regulations 24 and 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 the 2014-2019 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

74. The Commission vide order dated 27.4.2020 in Petition No. 274/TT/2019 has 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) 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

75. The 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 for the 2014-2019 tariff period in terms of the provisions of the 2014 Tariff Regulations, which is as follows:

Year MAT Rate (%) Grossed-up RoE [(Base Rate)/(1-t)] (%) 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

76. Accordingly, the RoE approved for the transmission assets is as follows:

(Rs. in lakh)

Asset-I Particulars 2015-2016 (Pro-rata for 91 days) 2016-17 2017-2018 2018-2019 A Opening Equity 38.07 226.81 260.51 268.75 B Addition due to Additional Capitalization 188.74 33.70 8.24 0.00 C Closing Equity (A+B) 226.81 260.51 268.75 268.75 D Average Equity (A+C)/2 132.44 243.66 264.63 268.75 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 6.49 48.01 52.14 53.10

(Rs. in lakh)

Asset-II Particulars 2015-2016 (Pro-rata for 59 days) 2016-17 2017-2018 2018-2019 A Opening Equity 41.16 197.60 248.56 263.56 B Addition due to Additional Capitalization 156.45 50.96 15.00 0.00 C Closing Equity (A+B) 197.60 248.56 263.56 263.56 D Average Equity (A+C)/2 119.38 223.08 256.06 263.56 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 3.79 43.96 50.46 52.08

(Rs. in lakh)

Asset-III Asset-IV Particulars 2016-2017 (Pro-rata for 189 days) 2017-2018 2018-2019 2018-2019 (Pro-rata for 43 days) A Opening Equity 374.53 390.99 482.62 292.87 B Addition due to Additional Capitalization 16.46 91.62 0.00 0.00 C Closing Equity (A+B) 390.99 482.62 482.62 292.87 D Average Equity (A+C)/2 382.76 436.80 482.62 292.87 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 15.500 F Tax Rate applicable (%) 21.342 21.342 21.549 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.705 19.758 19.758 H Return on Equity (Pre-tax) (D*G) 39.05 86.07 95.36 6.82

(Rs. in lakh)

Asset-V Particulars 2016-2017 (Pro-rata for 363 days) 2017-2018 2018-2019 A Opening Equity 60.63 519.93 543.51 B Addition due to Additional Capitalization 459.30 23.58 0.00 C Closing Equity (A+B) 519.93 543.51 543.51 D Average Equity (A+C)/2 290.28 531.72 543.51 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 56.89 104.78 107.39

(Rs. in lakh)

Asset-VI Particulars 2016-2017 (Pro-rata for 183 days) 2017-2018 2018-2019 A Opening Equity 467.50 505.47 565.38 B Addition due to Additional Capitalization 37.97 59.91 8.45 C Closing Equity (A+B) 505.47 565.38 573.83 D Average Equity (A+C)/2 486.49 535.43 569.61 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 48.06 105.51 112.54

(Rs. in lakh)

Asset-VII Particulars 2015-2016 (Pro-rata for 32 days) 2016-17 2017-2018 2018-2019 A Opening Equity 162.66 184.83 230.57 243.74 B Addition due to Additional Capitalization 22.17 45.74 13.17 52.22 C Closing Equity (A+B) 184.83 230.57 243.74 295.96 D Average Equity (A+C)/2 173.75 207.70 237.16 269.85 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 2.99 40.93 46.73 53.32

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 A Opening Equity 661.01 822.00 877.66 B Addition due to Additional Capitalization 160.99 55.66 69.82 C Closing Equity (A+B) 822.00 877.66 947.48 D Average Equity (A+C)/2 741.51 849.83 912.57 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 72.46 167.46 180.30

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 A Opening Equity 1078.77 1370.98 1540.32 B Addition due to Additional Capitalization 292.20 169.34 135.94 C Closing Equity (A+B) 1370.98 1540.32 1676.26 D Average Equity (A+C)/2 1224.88 1455.65 1608.29 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 119.69 286.84 317.77

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 A Opening Equity 53.91 70.53 152.51 B Addition due to Additional Capitalization 16.62 81.98 21.39 C Closing Equity (A+B) 70.53 152.51 173.90 D Average Equity (A+C)/2 62.22 111.52 163.21 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 7.22 21.98 32.25

(Rs. in lakh)

Asset-XI Asset-XII Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 2016-2017 (Pro-rata for 141 days) A Opening Equity 462.57 1375.27 1449.34 466.29 B Addition due to Additional Capitalization 912.70 74.07 133.04 14.04 C Closing Equity (A+B) 1375.27 1449.34 1582.38 480.33 D Average Equity (A+C)/2 918.92 1412.30 1515.86 473.31 E Return on Equity (Base Rate) (%) 15.500% 15.500% 15.500% 15.500 F Tax Rate applicable (%) 21.342% 21.342% 21.549% 21.342 G Rate of Return on Equity (Pre-tax) 19.705% 19.705% 19.758% 19.705 H Return on Equity (Pre-tax) (D*G) 87.81 278.29 299.50 36.03

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 A Opening Equity 961.27 961.43 1065.34 B Addition due to Additional Capitalization 0.16 103.90 61.07 C Closing Equity (A+B) 961.43 1065.34 1126.41 D Average Equity (A+C)/2 961.35 1013.39 1095.87 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 11.42 199.69 216.52

(Rs. in lakh)

Asset-XIV Particulars 2016-2017 (Pro-rata for days) 2017-2018 2018-2019 A Opening Equity 774.15 845.11 952.79 B Addition due to Additional Capitalization 70.96 107.68 70.28 C Closing Equity (A+B) 845.11 952.79 1023.07 D Average Equity (A+C)/2 809.63 898.95 987.93 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 53.32 177.14 195.19

(Rs. in lakh)

Asset-XV Asset-XVI Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 2017-2018 (Pro-rata for 20 days) 2018-2019 A Opening Equity 983.48 1023.22 1342.85 1371.38 B Addition due to Additional Capitalization 39.74 104.70 28.53 108.13 C Closing Equity (A+B) 1023.22 1127.92 1371.38 1479.52 D Average Equity (A+C)/2 1003.35 1075.57 1357.12 1425.45 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 57.42 212.51 14.65 281.64

(Rs. in lakh)

Asset-XVII Asset-XVIII Particulars 2017-2018 (Pro-rata for 3 days) 2018-2019 2017-2018 (Pro-rata for 46 days) 2018-2019 A Opening Equity 142.66 155.01 388.14 457.16 B Addition due to Additional Capitalization 12.35 27.53 69.02 38.32 C Closing Equity (A+B) 155.01 182.54 457.16 495.48 D Average Equity (A+C)/2 148.84 168.78 422.65 476.32 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 0.24 33.35 10.50 94.11

(Rs. in lakh)

Asset-XIX Asset-XX Particulars 2017-2018 (Pro-rata for 188 days) 2018-2019 2018-2019 (Pro-rata for 183 days) A Opening Equity 419.94 419.94 252.64 B Addition due to Additional Capitalization 0.00 0.00 74.96 C Closing Equity (A+B) 419.94 419.94 327.60 D Average Equity (A+C)/2 419.94 419.94 290.12 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 F Tax Rate applicable (%) 21.342 21.549 21.549 G Rate of Return on Equity (Pre-tax) 19.705 19.758 19.758 H Return on Equity (Pre-tax) (D*G) 42.62 82.97 28.74

(Rs. in lakh)

Asset-XXI Particulars 2015-2016 (Pro-rata for 263 days) 2016-17 2017-2018 2018-2019 A Opening Equity 374.41 422.82 462.11 516.01 B Addition due to Additional Capitalization 48.41 39.29 53.90 7.77 C Closing Equity (A+B) 422.82 462.11 516.01 523.78 D Average Equity (A+C)/2 398.61 442.46 489.06 519.89 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 56.44 87.19 96.37 102.72

Operation & Maintenance Expenses (O&M Expenses)

77. The Petitioner has not claimed any O&M expenses in respect of Assets-I, II, III, IV, V, VI, VII, XIV, XVII, XIX, XX, XXI. Accordingly, the O&M expenses for Assets-I, II, III, IV, V, VI, VII, XIV, XVII, XIX, XX and XXI are not allowed.

78. The details of the O&M Expenses claimed by the Petitioner for Assets-VIII, IX, X, XI, XII, XIII, XV, XVI, and XVIII as per Regulation 29(4)(a) of the 2014 Tariff Regulations for the purpose of transmission tariff are as follows:

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 Sub-station Bays 400 kV (GIS): Baripada: Bus Reactor Bay at Baripada 1 1 1 Norms 400 kV (GIS) 55.02 56.84 58.73 Total Sub-station Bays O&M Expenses 55.02 56.84 58.73 Total O&M Expenses 27.28 56.84 58.73

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 Sub-station Bays 400 kV (GIS): Baripada:400 kV ICT Bay at Baripada Sub-station 1 1 1 220 kV (GIS): Baripada: 220 kV ICT Bay at Baripada Sub-station 1 1 1 Norms 400 kV (GIS) 55.02 56.84 58.73 220 kV (GIS) 45.06 46.55 48.10 Total Sub-station Bays O&M Expenses 100.08 103.39 106.83 Total O&M Expenses 49.63 103.39 106.83

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 Sub-station Bays 400 kV (AIS): Jeerat: Bus Reactor Bay at Jeerat 1 1 1 Norms 400 kV (AIS) 64.37 66.51 68.71 Total Sub-station Bays O&M Expenses 64.37 66.51 68.71 Total O&M Expenses 37.92 66.51 68.71

(Rs. in lakh)

Asset-XI Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 Sub-station Bays 400 kV (GIS): Maithon: Bus Reactor Bay at Maithon Sub-station 1 1 1 Norms 400 kV (GIS) 55.02 56.84 58.73 Total Sub-station Bays O&M Expenses 55.02 56.84 58.73 Total O&M Expenses 26.68 56.84 58.73

(Rs. in lakh)

Asset-XII Particulars 2016-2017 (Pro-rata for 141 days) Sub-station Bays 220 kV (GIS): 2 Nos. GIS Bays at Kishanganj Sub-station 2 Norms 220 kV (GIS) 45.06 Total Sub-station Bays O&M Expenses 90.12 Total O&M Expenses 34.81

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 Sub-station Bays 220 kV (GIS): 4 Nos of 220 kV GIS Bays at Kishanganj Sub-station 4 4 4 Norms 220 kV (GIS) 45.06 46.55 48.10 Total Sub-station Bays O&M Expenses 180.24 186.20 192.40 Total O&M Expenses 10.86 186.20 192.40

(Rs. in lakh)

Asset-XV Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 Sub-station Bays 400 kV (AIS): Jamshedpur: ICT Bay at Jamshedpur 1 1 220 kV (AIS): Jamshedpur:ICT Bay at Jamshedpur 1 1 Norms 400 kV (AIS) 66.51 68.71 220 kV (AIS) 46.55 48.10 Total Sub-station Bays O&M Expenses 113.06 116.81 Total O&M Expenses 32.83 116.81

(Rs. in lakh)

Asset-XVI Particulars 2017-2018 (Pro-rata for 20 days) 2018-2019 Sub-station Bays 132 kV (AIS): Purnea:132 kV Bay at Purnea Substation 7 7 Norms 132 kV (AIS) 33.25 34.36 Total Sub-station Bays O&M Expenses 232.75 240.52 Total O&M Expenses 12.75 240.52

(Rs. in lakh)

Asset-XVIII Particulars 2017-2018 (Pro-rata for 46 days) 2018-2019 Sub-station Bays 220 kV (AIS): Patna:220 kV ICT Bay at Patna 1 1 Norms 220 kV (AIS) 46.55 48.10 Total Sub-station Bays O&M Expenses 46.55 48.10 Total O&M Expenses 5.87 48.10

Interest on Working Capital (IWC)

79. The Interest on Working Capital (IWC) has been allowed as per Regulation 28(1)(c) of the 2014 Tariff Regulations as follows:—

i. Working Capital for Maintenance Spares:

Maintenance spares have been worked out based on 15% of O&M expenses.

ii. Working Capital for O & M Expenses:

O&M expenses have been considered for one month of the allowed O&M expenses.

iii. Working Capital for Receivables:

The receivables have been worked out on the basis of 2 months of annual transmission charges as worked out above.

iv. Rate of Interest on Working Capital:

Rate of interest on working capital is being considered on normative basis in accordance with Clause (3) of Regulation 28 of the 2014 Tariff Regulations.

80. The trued-up IWC allowed for the transmission assets are as follows:

(Rs. in lakh)

Asset-I Particulars 2015-2016 (Pro-rata for 91 days) 2016-17 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 13.24 23.89 24.56 24.14 D Total of Working Capital (A+B+C) 13.24 23.89 24.56 24.14 E Rate of Interest on Working Capital(%) 13.50 13.50 13.50 13.50 F Interest of Working Capital (D*E) 0.44 3.23 3.31 3.26

(Rs. in lakh)

Asset-II Particulars 2015-2016 (Pro-rata for 59 days) 2016-17 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 11.91 21.84 23.80 23.75 D Total of Working Capital (A+B+C) 11.91 21.84 23.80 23.75 E Rate of Interest on Working Capital(%) 13.50 13.50 13.50 13.50 F Interest of Working Capital (D*E) 0.26 2.95 3.21 3.21

(Rs. in lakh)

Asset-III Asset-IV Particulars 2016-2017 (Pro-rata for 189 days) 2017-2018 2018-2019 2018-2019 (Pro-rata for 43 days) A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 36.24 40.57 43.80 28.12 D Total of Working Capital (A+B+C) 36.24 40.57 43.80 28.12 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 12.20 F Interest of Working Capital (D*E) 2.40 5.19 5.61 0.40

(Rs. in lakh)

Asset-V Particulars 2016-2017 (Pro-rata for 363 days) 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 27.66 49.62 49.42 D Total of Working Capital (A+B+C) 27.66 49.62 49.42 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 F Interest of Working Capital (D*E) 3.52 6.35 6.33

(Rs. in lakh)

Asset-VI Particulars 2016-2017 (Pro-rata for 183 days) 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 46.43 49.93 51.80 D Total of Working Capital (A+B+C) 46.43 49.93 51.80 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 F Interest of Working Capital (D*E) 2.98 6.39 6.63

(Rs. in lakh)

Asset-VII Particulars 2015-2016 (Pro-rata for 32 days) 2016-17 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 17.22 20.16 22.06 24.49 D Total of Working Capital (A+B+C) 17.22 20.16 22.06 24.49 E Rate of Interest on Working Capital(%) 13.50 13.50 13.50 13.50 F Interest of Working Capital (D*E) 0.20 2.72 2.98 3.31

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 4.59 4.74 4.89 B Working Capital for Maintenance Spares (15% of O&M expenses) 8.25 8.53 8.81 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 81.40 89.41 93.32 D Total of Working Capital (A+B+C) 94.24 102.67 107.02 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 F Interest of Working Capital (D*E) 5.98 13.14 13.70

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 8.34 8.62 8.90 B Working Capital for Maintenance Spares (15% of O&M expenses) 15.01 15.51 16.02 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 136.15 154.22 165.12 D Total of Working Capital (A+B+C) 159.51 178.34 190.05 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 F Interest of Working Capital (D*E) 10.12 22.83 24.33

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 5.36 5.54 5.73 B Working Capital for Maintenance Spares (15% of O&M expenses) 9.66 9.98 10.31 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 17.34 22.12 27.09 D Total of Working Capital (A+B+C) 32.36 37.64 43.12 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 F Interest of Working Capital (D*E) 2.44 4.82 5.52

(Rs. in lakh)

Asset-XI Asset-XII Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 2016-2017 (Pro-rata for 141 days) A Working Capital for O & M Expenses (O&M expenses for 1 month) 4.59 4.74 4.89 7.51 B Working Capital for Maintenance Spares (15% of O&M expenses) 8.25 8.53 8.81 13.52 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 96.30 140.47 147.33 61.16 D Total of Working Capital (A+B+C) 109.13 153.74 161.03 82.18 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 12.80 F Interest of Working Capital (D*E) 6.77 19.68 20.61 4.06

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 15.02 15.52 16.03 B Working Capital for Maintenance Spares (15% of O&M expenses) 27.04 27.93 28.86 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 124.01 128.42 134.74 D Total of Working Capital (A+B+C) 166.07 171.86 179.63 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 F Interest of working Capital (D*E) 1.28 22.00 22.99

(Rs. in lakh)

Asset-XIV Particulars 2016-2017 (Pro-rata for days) 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 76.55 83.23 89.38 D Total of Working Capital (A+B+C) 76.55 83.23 89.38 E Rate of Interest on Working Capital(%) 12.80 12.80 12.80 F Interest of Working Capital (D*E) 3.27 10.65 11.44

(Rs. in lakh)

Asset-XV Asset-XVI Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 2017-2018 (Pro-rata for 20 days) 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 9.42 9.73 19.40 20.04 B Working Capital for Maintenance Spares (15% of O&M expenses) 16.96 17.52 34.91 36.08 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 110.24 116.36 169.34 175.98 D Total of Working Capital (A+B+C) 136.62 143.62 223.65 232.10 E Rate of Interest on Working capital(%) 12.60 12.60 12.60 12.60 F Interest of Working Capital (D*E) 5.00 18.10 1.54 29.24

(Rs. in lakh)

Asset-XVII Asset-XVIII Particulars 2017-2018 (Pro-rata for 3 days) 2018-2019 2017-2018 (Pro-rata for 46 days) 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 3.88 4.01 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 6.98 7.22 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 14.11 15.83 47.86 52.65 D Total of Working Capital (A+B+C) 14.11 15.83 58.72 63.88 E Rate of Interest on Working capital(%) 12.60 12.60 12.60 12.60 F Interest of Working Capital (D*E) 0.01 1.99 0.93 8.05

(Rs. in lakh)

Asset-XIX Asset-XX Particulars 2017-2018 (Pro-rata for 188 days) 2018-2019 2018-2019 (Pro-rata for 183 days) A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 39.34 38.79 27.70 D Total of Working Capital (A+B+C) 39.34 38.79 27.70 E Rate of Interest on Working Capital(%) 12.60 12.60 12.20 F Interest of Working Capital (D*E) 2.55 4.89 1.69

(Rs. in lakh)

Asset-XXI Particulars 2015-2016 (Pro-rata for 263 days) 2016-17 2017-2018 2018-2019 A Working Capital for O & M Expenses (O&M expenses for 1 month) 0.00 0.00 0.00 0.00 B Working Capital for Maintenance Spares (15% of O&M expenses) 0.00 0.00 0.00 0.00 C Working Capital for Receivables (Equivalent to 2 months of annual fixed cost/annual transmission charges) 39.18 42.30 44.84 46.36 D Total of Working Capital (A+B+C) 39.18 42.30 44.84 46.36 E Rate of Interest on Working Capital(%) 13.50 13.50 13.50 13.50 F Interest of Working Capital (D*E) 3.80 5.71 6.05 6.26

Approved Annual Fixed Charges for the 2014-2019 Tariff Period

81. The trued-up annual fixed charges approved in respect of the transmission assets for the 2014-2019 tariff period are as follows:

(Rs. in lakh)

Asset-I Particulars 2015-2016 (Pro-rata for 91 days) 2016-17 2017-2018 2018-2019 Depreciation 5.80 42.88 46.58 47.30 Interest on Loan 7.02 49.22 45.30 41.18 Return on Equity 6.49 48.01 52.14 53.10 O & M Expenses 0.00 0.00 0.00 0.00 Int. on Working Capital 0.44 3.23 3.31 3.26 Total 19.75 143.34 147.33 144.84

(Rs. in lakh)

Asset-II Particulars 2015-2016 (Pro-rata for 59 days) 2016-17 2017-2018 2018-2019 Depreciation 3.39 39.26 45.07 46.39 Interest on Loan 4.09 44.85 44.07 40.83 Return on Equity 3.79 43.96 50.46 52.08 O & M Expenses 0.00 0.00 0.00 0.00 Int. on Working Capital 0.26 2.95 3.21 3.21 Total 11.53 131.02 142.81 142.51

(Rs. in lakh)

Asset-III Asset-IV Particulars 2016-2017 (Pro-rata for 189 days) 2017-2018 2018-2019 2018-2019 (Pro-rata for 43 days) Depreciation 34.88 76.88 84.94 6.07 Interest on Loan 36.26 75.30 76.91 6.58 Return on Equity 39.05 86.07 95.36 6.82 O & M Expenses 0.00 0.00 0.00 0.00 Int. on Working Capital 2.40 5.19 5.61 0.40 Total 112.59 243.44 262.82 19.87

(Rs. in lakh)

Asset-V Particulars 2016-2017 (Pro-rata for 363 days) 2017-2018 2018-2019 Depreciation 50.81 93.58 95.66 Interest on Loan 53.82 93.03 87.17 Return on Equity 56.89 104.78 107.39 O & M Expenses 0.00 0.00 0.00 Int. on Working Capital 3.52 6.35 6.33 Total 165.04 297.74 296.55

(Rs. in lakh)

Asset-VI Particulars 2016-2017 (Pro-rata for 183 days) 2017-2018 2018-2019 Depreciation 42.93 94.24 100.25 Interest on Loan 45.70 93.43 91.37 Return on Equity 48.06 105.51 112.54 O & M Expenses 0.00 0.00 0.00 Int. on Working Capital 2.98 6.39 6.63 Total 139.67 299.57 310.79

(Rs. in lakh)

Asset-VII Particulars 2015-2016 (Pro-rata for 32 days) 2016-17 2017-2018 2018-2019 Depreciation 2.67 36.56 41.74 47.49 Interest on Loan 3.16 40.78 40.89 42.83 Return on Equity 2.99 40.93 46.73 53.32 O & M Expenses 0.00 0.00 0.00 0.00 Int. on Working Capital 0.20 2.72 2.98 3.31 Total 9.02 120.99 132.34 146.95

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 Depreciation 64.72 149.57 160.61 Interest on Loan 71.76 149.46 146.57 Return on Equity 72.46 167.46 180.30 O & M Expenses 27.28 56.84 58.73 Int. on Working Capital 5.98 13.14 13.70 Total 242.20 536.47 559.91

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 Depreciation 106.90 256.20 283.06 Interest on Loan 118.76 256.05 258.76 Return on Equity 119.69 286.84 317.77 O & M Expenses 49.63 103.39 106.83 Int. on Working Capital 10.12 22.83 24.33 Total 405.10 925.31 990.75

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 Depreciation 6.45 19.63 28.72 Interest on Loan 7.25 19.81 27.35 Return on Equity 7.22 21.98 32.25 O & M Expenses 37.92 66.51 68.71 Int. on Working Capital 2.44 4.82 5.52 Total 61.28 132.75 162.55

(Rs. in lakh)

Asset-XI Asset-XII Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 2016-2017 (Pro-rata for 141 days) Depreciation 78.43 248.57 266.79 32.24 Interest on Loan 80.49 239.47 238.33 34.61 Return on Equity 87.81 278.29 299.50 36.03 O & M Expenses 26.68 56.84 58.73 34.81 Int. on Working Capital 6.77 19.68 20.61 4.06 Total 280.18 842.85 883.96 141.75

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 Depreciation 10.22 178.71 193.23 Interest on Loan 11.06 183.91 183.30 Return on Equity 11.42 199.69 216.52 O & M Expenses 10.86 186.20 192.40 Int. on Working Capital 1.28 22.00 22.99 Total 44.84 770.51 808.44

(Rs. in lakh)

Asset-XIV Particulars 2016-2017 (Pro-rata for days) 2017-2018 2018-2019 Depreciation 47.63 158.22 173.88 Interest on Loan 49.28 153.39 155.75 Return on Equity 53.32 177.14 195.19 O & M Expenses 0.00 0.00 0.00 Int. on Working Capital 3.27 10.65 11.44 Total 153.50 499.40 536.26

(Rs. in lakh)

Asset-XV Asset-XVI Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 2017-2018 (Pro-rata for 20 days) 2018-2019 Depreciation 51.92 191.48 13.09 250.88 Interest on Loan 44.92 159.28 13.64 253.60 Return on Equity 57.42 212.51 14.65 281.64 O & M Expenses 32.83 116.81 12.75 240.52 Int. on Working Capital 5.00 18.10 1.54 29.24 Total 192.09 698.18 55.67 1055.88

(Rs. in lakh)

Asset-XVII Asset-XVIII Particulars 2017-2018 (Pro-rata for 3 days) 2018-2019 2017-2018 (Pro-rata for 46 days) 2018-2019 Depreciation 0.22 29.70 9.37 83.83 Interest on Loan 0.22 29.92 9.52 81.82 Return on Equity 0.24 33.35 10.50 94.11 O & M Expenses 0.00 0.00 5.87 48.10 Int. on Working Capital 0.01 1.99 0.93 8.05 Total 0.69 94.96 36.19 315.91

(Rs. in lakh)

Asset-XIX Asset-XX Particulars 2017-2018 (Pro-rata for 188 days) 2018-2019 2018-2019 (Pro-rata for 183 days) Depreciation 38.07 73.91 25.60 Interest on Loan 38.33 70.99 27.30 Return on Equity 42.62 82.97 28.74 O & M Expenses 0.00 0.00 0.00 Int. on Working Capital 2.55 4.89 1.69 Total 121.57 232.76 83.33

(Rs. in lakh)

Asset-XXI Particulars 2015-2016 (Pro-rata for 263 days) 2016-17 2017-2018 2018-2019 Depreciation 50.41 77.87 86.08 91.50 Interest on Loan 58.27 83.03 80.51 77.66 Return on Equity 56.44 87.19 96.37 102.72 O & M Expenses 0.00 0.00 0.00 0.00 Int. on Working Capital 3.80 5.71 6.05 6.26 Total 168.92 253.80 269.01 278.14

DETERMINATION OF ANNUAL FIXED CHARGES FOR THE 2019-2024 TARIFF PERIOD

82. The Petitioner has combined all the assets into a single asset in 2019-2024 tariff period and submitted the Tariff Forms for the Combined Asset. (hereinafter referred to as ‘combined asset’). Accordingly, as per proviso (i) of Regulation 8(1) of the 2019 Tariff Regulations, transmission tariff for the combined asset has been worked out for the 2019-2024 tariff period.

83. The Petitioner has claimed the following transmission charges for the combined asset for the 2019-2024 tariff period:

(Rs. in lakh)

Particulars 2019-20 2020-21 201-22 2022-23 2023-24 Depreciation 2516.06 2576.37 2592.53 2593.95 2581.34 Interest on Loan 2146.81 2004.49 1812.53 1604.31 1394.91 Return on Equity 2666.37 2730.72 2747.97 2749.49 2749.49 Interest on Working Capital 212.33 216.13 217.46 218.31 218.40 Operation and Maintenance Expenses 2343.25 2427.06 2512.41 2602.90 2690.69 Total 9884.82 9954.77 9882.90 9768.96 9634.83

84. The Petitioner has claimed the following Interest on Working Capital for the combined asset for the 2019-2024 tariff period:

(Rs. in lakh)

Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 O&M expenses 195.27 202.26 209.37 216.91 224.22 Maintenance Spares 351.49 364.06 376.86 390.44 403.60 Receivables 1215.35 1227.30 1218.44 1204.39 1184.61 Total 1762.11 1793.62 1804.67 1811.74 1812.43 Rate of Interest 12.05 12.05 12.05 12.05 12.05 Interest on Working Capital 212.33 216.13 217.46 218.31 218.40

Effective Date of Commercial Operation (E-COD)

85. The Petitioner has claimed E-COD of the combined asset as 23.2.2017. Based on the trued-up admitted capital cost and actual COD of all the assets, the E-COD has been worked out as follows:

Computation of Effective COD Assets Actual COD Admitted Capital Cost as on 31.3.2019 (Rs. inlakh) Weight of the cost (%) No. of Days from last COD Weighted Days Asset-I 1-1-2016 895.84 1.94 1143 22.23 Asset-II 2-2-2016 878.56 1.91 1111 21.19 Asset-III 24-9-2016 1608.73 3.49 876 30.59 Asset-IV 17-2-2019 976.23 2.12 0 0.00 Asset-V 3-4-2016 1811.74 3.93 1050 41.30 Asset-VI 30-9-2016 1912.81 4.15 870 36.13 Asset-VII 29-2-2016 986.55 2.14 1084 23.21 Asset-VIII 2-10-2016 3158.27 6.86 868 59.51 Asset-IX 2-10-2016 5587.55 12.13 868 105.28 Asset-X 29-8-2016 579.67 1.26 902 11.35 Asset-XI 6-10-2016 5274.60 11.45 864 98.93 Asset-XIII 10-3-2017 3754.72 8.15 709 57.79 Asset-XIV 30-11-2016 3410.25 7.40 809 59.89 Asset-XV 16-12-2017 3801.04 8.25 428 35.32 Asset-XVI 12-3-2018 4931.75 10.71 342 36.61 Asset-XVII 29-3-2018 608.48 1.32 325 4.29 Asset-XVIII 14-2-2018 1651.59 3.59 368 13.19 Asset-XIX 25-9-2017 1399.79 3.04 510 15.50 Asset-XX 30-9-2018 1092.00 2.37 140 3.32 Asset-XXI 13-7-2015 1745.96 3.79 1315 49.84 Total 17.2.2019* 46066.13 100.00 725.47 Effective COD (Latest COD - Total weighted Days) 21.2.2017

*Latest COD

86. The 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)

87. The life as defined in Regulation 33 of the 2019 Tariff Regulations has been considered for determination of weighted average life. 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 weighted average Life (WAL) has been used as the useful life of the project as a whole.

88. WAL has been determined based on the admitted capital cost of individual elements as on 31.3.2019 irrespective of life of the individual elements 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 has been worked out as 25 years 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) Weighted Avg. Life of Asset (in years) (4)=(3)/(1) Sub-Station Equipment 45878.46 25 1146961.50 PLCC 33.98 15 509.63 IT equipment 153.68 6.67 1024.56 Total 46066.12 1148495.69 24.93 years, rounded off to 25 years

89. WAL as on 1.4.2019 as determined above is applicable prospectively (i.e. for 2019-2024 tariff period, no retrospective adjustment of depreciation in previous tariff period is required to be done. As discussed, the E-COD of the combined asset is 21.2.2017 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, which works out to be 23 years.

Capital Cost

90. 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.”

91. The trued-up capital cost as on 31.3.2019 for Assets-1 to 21 has been considered as capital cost as on 31.3.2019 for the combined asset. 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 for the transmission assets are clubbed together and the capital cost has been considered as capital cost for combined asset as on 31.3.2019 as per following details:

(Rs. in lakh)

Particulars Asset-1 Asset-2 Asset-3 Asset-4 Asset-5 Asset-6 Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 Building & Other Civil Works 0.00 0.00 0.00 0.00 0.00 0.00 Transmission Line 0.00 0.00 0.00 0.00 0.00 0.00 Sub-Station Equipment 895.84 878.56 1603.58 976.23 1811.74 1912.81 PLCC 0.00 0.00 0.00 0.00 0.00 0.00 Leasehold Land 0.00 0.00 0.00 0.00 0.00 0.00 IT Equipment and Software 0.00 0.00 5.15 0.00 0.00 0.00 Total 895.84 878.56 1608.73 976.23 1811.74 1912.81

(Rs. in lakh)

Particulars Asset-7 Asset-8 Asset-9 Asset-10 Asset-11 Asset-13 Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 Building & Other Civil Works 0.00 0.00 0.00 0.00 0.00 0.00 Transmission Line 0.00 0.00 0.00 0.00 0.00 0.00 Sub-Station Equipment 986.55 3158.27 5587.55 579.67 5274.60 3577.67 PLCC 0.00 0.00 0.00 0.00 0.00 33.98 Leasehold Land 0.00 0.00 0.00 0.00 0.00 0.00 IT Equipment and Software 0.00 0.00 0.00 0.00 0.00 143.08 Total 986.55 3158.27 5587.55 579.67 5274.60 3754.72

(Rs. in lakh)

Particulars Asset-14 Asset-15 Asset-16 Asset-17 Asset-18 Asset-19 Freehold Land 0.00 0.00 0.00 0.00 0.00 0.00 Building & Other Civil Works 0.00 0.00 0.00 0.00 0.00 0.00 Transmission Line 0.00 0.00 0.00 0.00 0.00 0.00 Sub-Station Equipment 3410.25 3801.04 4931.75 608.48 1646.13 1399.79 PLCC 0.00 0.00 0.00 0.00 0.00 0.00 Leasehold Land 0.00 0.00 0.00 0.00 0.00 0.00 IT Equipment and Software 0.00 0.00 0.00 0.00 5.46 0.00 Total 3410.25 3801.04 4931.75 608.48 1651.59 1399.79

(Rs. in lakh)

Particulars Asset-20 Asset-21 Total Capital Cost as on 31.3.2019 Freehold Land 0.00 0.00 0.00 Building & Other Civil Works 0.00 0.00 0.00 Transmission Line 0.00 0.00 0.00 Sub-Station Equipment 1092.00 1745.96 45878.46 PLCC 0.00 0.00 33.98 Leasehold Land 0.00 0.00 0.00 IT Equipment and Software 0.00 0.00 153.68 Total 1092.00 1745.96 46066.12

92. The trued-up capital cost of Rs. 46066.12 lakh for combined asset has been considered as admitted capital cost as on 31.3.2019 for working out tariff for 2019-2024 tariff period.

Initial Spares

93. As stated earlier in this order, initial spares are approved for the 2014-2019 period on the basis of the cost of individual assets. The transmission assets covered in the transmission project are combined during the 2019-2024 tariff period and hence, the initial spares are allowed on the basis of the overall project cost as per the APTEL's Judgment dated 14.9.2019 in Appeal No. 74 of 2017.

94. Accordingly, initial spares allowed in the 2019-2024 tariff period are as follows:

Sub-stations:

Asset Capital Cost/P&M Cost as on cut-off date (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 Initial Spares Allowed (Rs. in lakh) during 2014-2019 period Initial Spares allowed on Combined Asset (Rs. in lakh) Asset-1 883.94 29.36 6.00 54.55 29.36 Asset-2 870.86 16.13 6.00 54.56 16.13 Asset-3 1520.45 97.15 6.00 90.85 90.85 Asset-4 1122.09 44.88 6.00 68.76 44.88 Asset-5 1793.78 104.65 6.00 107.82 104.65 Asset-6 1784.53 105.46 6.00 107.17 105.46 Asset-7 968.96 60.01 6.00 58.02 58.02 Asset-8 3100.84 176 5.00 153.94 153.94 Asset-9 5468.94 285.64 5.00 272.81 272.81 Asset-10 577.83 40.15 6.00 34.32 34.32 Asset-11 5404.79 449.07 5.00 260.83 260.83 Asset-12 1590.26 82.02 5.00 79.38 79.38 Asset-13 1640.43 82.02 5.00 82.02 82.02 Asset-14 3375.7 205.96 5.00 166.83 166.83 Asset-15 2338.45 140.31 6.00 140.31 140.31 Asset-16 4340.76 173.63 5.00 219.32 173.63 Asset-17 794.2 47.65 6.00 47.65 47.65 Asset-18 1641.52 65 6.00 100.63 65.00 Asset-19 1369.95 0 6.00 87.44 0.00 Asset-20 1443.55 79 6.00 87.10 79.00 Asset-21 1649.99 64.9 6.00 101.18 64.90 Combined Asset 2348.99 2375.47 2069.95 279.04

*Additional Initial Spares of Rs. 279.04 lakh (Rs. 2348.99-Rs. 2069.95) lakh are allowed for Substation. Further, out of Rs. 279.04 lakh, Rs. 272.73 lakh allowed as on 1.4.2019 and Rs. 6.30 lakh allowed as ACE in 2019-2020.

95. Accordingly, the capital cost allowed as on 1.4.2019 is as follows:

(Rs. in lakh)

Asset Capital Cost as on 31.3.2019 Initial Spares allowed as per APTEL's Judgment Capital Cost as on 1.4.2019 Combined Asset 46066.12 272.73 46338.85

Additional Capital Expenditure (ACE)

96. 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.”

97. The Petitioner has claimed projected ACE for 2019-2024 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 transmission assets are as follows:

(Rs. in lakh)

Asset ACE (as per Auditor's Certificate) 2019-20 2020-21 2021-22 Asset-1 100.00 0.00 0.00 Asset-2 100.00 0.00 0.00 Asset-3 133.93 0.00 0.00 Asset-4 108.88 107.95 53.97 Asset-5 0.00 0.00 0.00 Asset-6 8.36 0.00 0.00 Asset-7 84.20 0.00 0.00 Asset-8 69.92 0.00 0.00 Asset-9 0.00 0.00 0.00 Asset-10 50.00 0.00 0.00 Asset-11 100.00 0.00 0.00 Asset-12 50.18 0.00 0.00 Asset-13 50.18 0.00 0.00 Asset-14 100.00 0.00 0.00 Asset-15 122.00 0.00 0.00 Asset-16 265.89 66.47 0.00 Asset-17 173.87 43.47 0.00 Asset-18 136.84 34.19 0.00 Asset-19 0.00 0.00 0.00 Asset-20 72.00 306.00 0.00 Asset-21 0.00 0.00 0.00 Total 1726.25 558.08 53.97

98. We have considered the submissions of the Petitioner. ACE claimed towards balance and retention payments and undischarged liability is allowed under Regulation 24(1)(a) and 25(1)(d) of the 2019 Tariff Regulations. The ACE allowed is summarized below, which is subject to true-up:

(Rs. in lakh)

Asset Regulations ACE (as per Auditor's Certificate) 2019-20 2020-21 2021-22 Combined Asset Regulation 24(1)(a) and 25(1)(d) of TR,2019 1726.25 558.08 53.97 Total 1726.25 558.08 53.97

Capital Cost considered for the 2019-2024 tariff period

99. Accordingly, the capital cost of the combined asset considered for the 2019-2024 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 2021-22 Combined Asset 46338.85 1726.25 558.08 53.97 48677.15

Debt-Equity Ratio

100. Regulation 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.”

101. The details of the debt-equity considered for the purpose of computation of transmission tariff for the 2019-2024 tariff period is as follows:

Funding Capital Cost as on 1.4.2019 (Rs. in lakh) (%) Total Capital Cost as on 31.3.2024 (Rs. in lakh) (%) Debt 32449.68 70.03 34086.49 70.03 Equity 13889.17 29.97 14590.66 29.97 Total 46338.85 100.00 48677.15 100.00

Depreciation

102. 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.”

103. We have considered the submissions of the Petitioner. WAROD at Annexure-II has been worked out after taking into account the depreciation rates of transmission assets as prescribed in the 2019 Tariff Regulations. The depreciation has been worked out considering the admitted capital expenditure as on 31.3.2019 and accumulated depreciation up to 31.3.2019. The depreciation allowed is as follows:

(Rs. in lakh)

Combined Asset Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Opening Gross Block 46338.85 48065.10 48623.18 48677.15 48677.15 B Addition during the year 2019-2024 due to projected Additional Capitalisation 1726.25 558.08 53.97 0.00 0.00 C Closing Gross Block (A+B) 48065.10 48623.18 48677.15 48677.15 48677.15 D Average Gross Block (A+C)/2 47201.98 48344.14 48650.17 48677.15 48677.15 E Weighted average rate of Depreciation (WAROD) (%) 5.31 5.31 5.31 5.31 5.31 F Elapsed useful life at the beginning of the year 2.00 3.00 4.00 5.00 6.00 G Balance useful life at the beginningof the year 23.00 22.00 21.00 20.00 19.00 H Depreciable value (D*90%) 42497.15 43525.10 43800.52 43824.81 43824.81 I Combined Depreciation during the year (D*E) 2507.56 2567.87 2584.02 2585.45 2585.45 J Cumulative Depreciation at the end of the year 7564.71 10132.58 12716.60 15302.05 17887.50 K Remaining Aggregate Depreciable Value at the end of the year 34932.44 33392.52 31083.92 28522.76 25937.31

Interest on Loan (IoL)

104. 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 2019-2024 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”.

105. 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 the 2019-2024 tariff period will be adjusted. Accordingly, the floating rate of interest, if any, shall be considered at the time of true-up.

106. The Respondent, BSPHCL, has submitted that the 2019 Tariff Regulations do not permit change in interest rate due to floating rate of interest.

107. In response, the Petitioner has submitted that in the tariff calculation for 2019-2024, weighted average rate of interest of IoL has been considered on the basis of the rates prevailing as on 1.4.2019 and floating rate of interest, if any, will be claimed directly from the beneficiaries.

108. We have considered the submissions of the Petitioner and BSPHCL. IoL has been worked out in accordance with Regulation 32 of the 2019 Tariff Regulations. The IoL allowed is as follows:

(Rs. in lakh)

Combined Asset Particular 2019-20 2020-21 2021-22 2022-23 2023-24 A Gross Normative Loan 32449.68 33658.05 34048.71 34086.49 34086.49 B Cumulative Repayments upto Previous Year 5036.76 7544.32 10112.19 12696.21 15281.66 C Net Loan-Opening (A-B) 27412.91 26113.73 23936.52 21390.27 18804.83 D Addition due to Additional Capitalization 1208.38 390.66 37.78 0.00 0.00 E Repayment during the year 2507.56 2567.87 2584.02 2585.45 2585.45 F Net Loan-Closing (C+D-E) 26113.73 23936.52 21390.27 18804.83 16219.38 G Average Loan (C+F)/2 26763.32 25025.12 22663.40 20097.55 17512.10 H Weighted Average Rate of Interest on Loan (%) 8.01 8.00 7.99 7.98 7.96 I Interest on Loan (G*H) 2143.90 2002.26 1810.99 1603.44 1394.23

Return on Equity(RoE)

109. Regulations 30 and 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 run-of-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 2019-2020 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 2019-2020 = 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 2019-2024 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.”

110. The Petitioner has submitted that MAT rate is applicable to the Petitioner's company. We have considered the submissions of the Petitioner. The MAT rate applicable in 2019-2020 has been considered for the purpose of RoE, which will be trued-up with actual tax rate in accordance with Regulation 31(3) of the 2019 Tariff Regulations. The RoE allowed under Regulation 30 of the 2019 Tariff Regulations is as follows:

(Rs. in lakh)

Combined Asset Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Opening Equity 13889.17 14407.05 14574.47 14590.66 14590.66 B Addition due to Additional Capitalization 517.88 167.42 16.19 0.00 0.00 C Closing Equity (A+B) 14407.05 14574.47 14590.66 14590.66 14590.66 D Average Equity (A+C)/2 14148.11 14490.76 14582.57 14590.66 14590.66 E Return on Equity (Base Rate) (%) 15.500 15.500 15.500 15.500 15.500 F Tax Rate applicable (%) 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) 2657.30 2721.65 2738.90 2740.42 2740.42

Operation & Maintenance Expenses (O&M Expenses)

111. Regulation 35(3)(a) of the 2019 Tariff Regulations provides 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.”

112. The O&M expenses claimed by the Petitioner for 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 400 kV (GIS): Baripada: Bus Reactor Bay at Baripada 1 1 1 1 1 400 kV (GIS): Baripada:400 kV ICT Bay at Baripada Sub-station 1 1 1 1 1 400 kV (GIS): Maithon: Bus Reactor Bay at Maithon Sub-station 1 1 1 1 1 400 kV (AIS): Jeerat: Bus Reactor Bay at Jeerat 1 1 1 1 1 400 kV (AIS): Jamshedpur: ICT Bay at Jamshedpur 1 1 1 1 1 220 kV (GIS): Baripada:220 kV ICT Bay at Baripada Sub-station 1 1 1 1 1 220 kV (GIS): 4 Nos of 220 kV GIS Bays at Kishanganj Sub-station 4 4 4 4 4 220 kV (AIS): Jamshedpur:ICT Bay at Jamshedpur 1 1 1 1 1 220 kV (AIS): Patna:220 kV ICT Bay at Patna 1 1 1 1 1 132 kV (AIS): Purnea:132 kV Bay at Purnea Sub-station 7 7 7 7 7 Total 400 kV (GIS) 3 3 3 3 3 400 kV (AIS) 2 2 2 2 2 220 kV (GIS) 5 5 5 5 5 220 kV (AIS) 2 2 2 2 2 132 kV (AIS) 7 7 7 7 7 Norms 400 kV (GIS) 22.505 23.296 24.115 24.962 25.837 400 kV (AIS) 32.15 33.28 34.45 35.66 36.91 220 kV (GIS) 15.757 16.310 16.884 17.472 18.088 220 kV (AIS) 22.51 23.30 24.12 24.96 25.84 132 kV (AIS) 16.08 16.64 17.23 17.83 18.46 Total Sub-station Bays O&M Expenses (A) 368.18 381.08 394.52 408.30 422.67 Transformer (MVA Capacity) 765 kV: Angul: ICT at Angul 500 500 500 500 500 765 kV: Jharsuguda/Sundargarh: ICT at Sundergarh 500 500 500 500 500 400 kV: Jamshedpur:ICT at Jamshedpur 315 315 315 315 315 400 kV: Baripada:500 MVA ICT at Baripada Sub-station 500 500 500 500 500 400 kV: Patna:500 MVA ICT at Patna 500 500 500 500 500 400 kV: Purnea:ICT at Purnea 500 500 500 500 500 400 kV: Patna:ICT-I & II 1000 1000 1000 1000 1000 400 kV: Purnea:ICt-II 500 500 500 500 500 400 kV: Sasaram:ICT 500 500 500 500 500 220 kV: Birpara:ICT-I 160 160 160 160 160 220 kV: Siliguri:ICT-I 160 160 160 160 160 220 kV: Purnea:ICT 160 160 160 160 160 Total 765 kV 1000 1000 1000 1000 1000 400 kV 3815 3815 3815 3815 3815 220 kV 480 480 480 480 480 Norms 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 Total Transformer O&M Expenses (B) 1974.37 2045.29 2117.20 2193.93 2267.33 Communication System PLCC 33.92 33.92 33.92 33.92 33.92 Norms (%) 2 2 2 2 2 Total Communication System (C) 0.68 0.68 0.68 0.68 0.68 Total O&M Expenses (D)=(A)+(B)+(C) 2343.23 2427.04 2512.39 2602.90 2690.67

113. The Petitioner has claimed O&M Expenses separately for the PLCC under Regulation 35(4) of the 2019 Tariff Regulations, i.e. @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 Substation 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.

114. The O&M Expenses allowed 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 400 kV (GIS): Baripada: Bus Reactor Bay at Baripada 1 1 1 1 1 400 kV (GIS): Baripada:400 kV ICT Bay at Baripada Sub-station 1 1 1 1 1 400 kV (GIS): Maithon: Bus Reactor Bay at Maithon Sub-station 1 1 1 1 1 400 kV (AIS): Jeerat: Bus Reactor Bay at Jeerat 1 1 1 1 1 400 kV (AIS): Jamshedpur: ICT Bay at Jamshedpur 1 1 1 1 1 220 kV (GIS): Baripada:220 kV ICT Bay at Baripada Sub-station 1 1 1 1 1 220 kV (GIS): 4 Nos of 220 kV GIS Bays at Kishanganj Sub-station 4 4 4 4 4 220 kV (AIS): Jamshedpur:ICT Bay at Jamshedpur 1 1 1 1 1 220 kV (AIS): Patna:220 kV ICT Bay at Patna 1 1 1 1 1 132 kV (AIS): Purnea:132 kV Bay at Purnea Sub-station 7 7 7 7 7 Total 400 kV (GIS) 3 3 3 3 3 400 kV (AIS) 2 2 2 2 2 220 kV (GIS) 5 5 5 5 5 220 kV (AIS) 2 2 2 2 2 132 kV (AIS) 7 7 7 7 7 Norms 400 kV (GIS) 22.505 23.296 24.115 24.962 25.837 400 kV (AIS) 32.15 33.28 34.45 35.66 36.91 220 kV (GIS) 15.757 16.310 16.884 17.472 18.088 220 kV (AIS) 22.51 23.30 24.12 24.96 25.84 132 kV (AIS) 16.08 16.64 17.23 17.83 18.46 Total Sub-station Bays O&M Expenses (A) 368.18 381.08 394.52 408.30 422.67 Transformer (MVA Capacity) 765 kV: Angul: ICT at Angul 500 500 500 500 500 765 kV: Jharsuguda/Sundargarh: ICT at Sundergarh 500 500 500 500 500 400 kV: Jamshedpur:ICT at Jamshedpur 315 315 315 315 315 400 kV: Baripada:500 MVA ICT at Baripada Sub-station 500 500 500 500 500 400 kV: Patna:500 MVA ICT at Patna 500 500 500 500 500 400 kV: Purnea:ICT at Purnea 500 500 500 500 500 400 kV: Patna:ICT-I & II 1000 1000 1000 1000 1000 400 kV: Purnea:ICt-II 500 500 500 500 500 400 kV: Sasaram:ICT 500 500 500 500 500 220 kV: Birpara:ICT-I 160 160 160 160 160 220 kV: Siliguri:ICT-I 160 160 160 160 160 220 kV: Purnea:ICT 160 160 160 160 160 Total 765 kV 1000 1000 1000 1000 1000 400 kV 3815 3815 3815 3815 3815 220 kV 480 480 480 480 480 Norms 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 Total Transformer O&M Expenses (B) 1974.37 2045.29 2117.20 2193.93 2267.33 Total O&M Expenses (C)=(A)+(B 2342.55 2426.36 2511.72 2602.23 2690.00

Interest on Working Capital (IWC)

115. Regulations 34(1)(c), (3) and (4) and 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 2019-2024 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 2019-2024.

(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;”

116. The Petitioner has submitted that it has computed the IWC for the 2019-2024 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%.The 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 2019-2020, 11.25%(SBI 1 year MCLR applicable as on 1.4.2020 of 7.75% plus 350 basis points) for 2020-2021, 10.50%(SBI 1 year MCLR applicable as on 1.4.2021 of 7.00% plus 350 basis points) for 2021-2024 onwards. The components of the working capital and interest allowed thereon are as follows:

(Rs. in lakh)

Combined Asset Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 A Working Capital for O & M Expenses (O&M expenses for 1 month) 195.21 202.20 209.31 216.85 224.17 B Working Capital for Maintenance Spares (15% of O&M expenses) 351.38 363.95 376.76 390.33 403.50 C Working Capital for Receivables (Equivalent to 45 days of annual fixed cost/annual transmission charges) 1212.70 1222.94 1212.47 1198.50 1180.32 D Total of Working Capital 1759.30 1789.09 1798.54 1805.68 1807.98 E Rate of Interest for Working Capital (%) 12.05 11.25 10.50 10.50 10.50 F Interest of working capital 212.00 201.27 188.85 189.60 189.84

Annual Fixed Charges for the 2019-2024 Tariff Period

117. The transmission charges allowed for the 2019-2024 tariff period are as follows:

(Rs. in lakh)

Combined Asset Particulars 2019-20 2020-21 2021-22 2022-23 2023-24 Depreciation 2507.56 2567.87 2584.02 2585.45 2585.45 Interest on Loan 2143.90 2002.26 1810.99 1603.44 1394.23 Return on Equity 2657.30 2721.65 2738.90 2740.42 2740.42 Operation and Maintenance Expenses 2342.55 2426.36 2511.72 2602.23 2690.00 Interest on Working Capital 212.00 201.27 188.85 189.60 189.84 Total 9863.31 9919.41 9834.48 9721.14 9599.94

Filing Fee and Publication Expenses

118. 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.

119. BSPHCL has submitted that grant of filing fee and expenses incurred are upon the discretion of the Commission and need not necessarily be allowed in all cases.

120. In response, the Petitioner has reitereated its submissions made in the petition.

121. We have considered the submissions of the Petitioner and BSPHCL. 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

122. The Petitioner shall be entitled for reimbursement of licence fee in accordance with Regulation 70(4) of the 2019 Tariff Regulations for the 2019-2024 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 2019-2024 tariff period.

Goods and Services Tax

123. The Petitioner has sought to recover GST on transmission charges separately from the Respondents, if at any time GST on transmission is withdrawn from negative list in future. BSPHCL has opposed the prayer for GST as premature.

124. In response, the Petitioner has reitereated its submissions made in the petiton.

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

Security Expenses

126. The Petitioner has submitted that security expenses for 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. The Petitioner has requested to consider the actual security expenses incurred during 2018-2019 for claiming estimated security expenses for 2019-2020 which shall be subject to true up at the end of the year based on the actuals. The Petitioner has submitted that similar petition for security expenses for 2020-2021, 2021-2022, 2022-2023 and 2023-2024 will be filed on yearly basis on the basis of the actual expenses of previous year subject to true-up at the end of the year on actual expenses. The Petitioner has submitted that the difference, if any, between the estimated security expenses and actual security expenses as the audited accounts may be allowed to be recovered from the beneficiaries on a yearly basis.

127. We have considered the submissions of the Petitioner. The Petitioner has claimed consolidated security expenses on projected basis for the 2019-2024 tariff period on the basis of actual security expenses incurred in 2018-2019 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

128. 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

129. BSPHCL has submitted that present consumers cannot be burdened for the past charges.

130. In response, the Petitioner has submitted that the sharing of transmission charges is being claimed as per the relevant regulations.

131. We have considered the submissions of the Petitioner and BSPHCL. The Commission vide order dated 19.9.2019 in respect of Asset-XII has held as follows:

“18. We have considered the submissions made by the petitioner regarding the COD of Asset-III. Out of the four bays covered in Asset-III, the COD of two bays is allowed matching with downstream line on 20.10.2016. The COD of remaining two bays as claimed by the petitioner under Regulation 4(3)(ii) is not admissible. The COD for remaining two bays is allowed on 10.3.2017 matching with commissioning of downstream system. The IDC/IEDC in respect of two bays which is considered as commissioned on 10.3.2017 shall not be capitalized and same (from 20.10.2016 to 9.3.2017) shall be borne by the BSPHCL.”

132. 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. Billing, collection and disbursement of the transmission charges for subsequent period shall be recovered in terms of provisions of the 2020 Sharing Regulations as provided in Regulation 57 of the 2019 Tariff Regulations.

133. To summarise,

(a) The trued-up Annual Fixed Charges approved for the transmission assets for the 2014-2019 tariff period are as follows:

(Rs. in lakh)

Asset-I Particulars 2015-2016 (Pro-rata for 91 days) 2016-17 2017-2018 2018-2019 Total 19.75 143.34 147.33 144.84

(Rs. in lakh)

Asset-II Particulars 2015-2016 (Pro-rata for 59 days) 2016-17 2017-2018 2018-2019 Total 11.53 131.02 142.81 142.51

(Rs. in lakh)

Asset-III Asset-IV Particulars 2016-2017 (Pro-rata for 189 days) 2017-2018 2018-2019 2018-2019 (Pro-rata for 43 days) Total 112.59 243.44 262.82 19.87

(Rs. in lakh)

Asset-V Particulars 2016-2017 (Pro-rata for 363 days) 2017-2018 2018-2019 Total 165.04 297.74 296.55

(Rs. in lakh)

Asset-VI Particulars 2016-2017 (Pro-rata for 183 days) 2017-2018 2018-2019 Total 139.67 299.57 310.79

(Rs. in lakh)

Asset-VII Particulars 2015-2016 (Pro-rata for 32 days) 2016-17 2017-2018 2018-2019 Total 9.02 120.99 132.34 146.95

(Rs. in lakh)

Asset-VIII Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 Total 242.20 536.47 559.91

(Rs. in lakh)

Asset-IX Particulars 2016-2017 (Pro-rata for 181 days) 2017-2018 2018-2019 Total 405.10 925.31 990.75

(Rs. in lakh)

Asset-X Particulars 2016-2017 (Pro-rata for 215 days) 2017-2018 2018-2019 Total 61.28 132.75 162.55

(Rs. in lakh)

Asset-XI Asset-XII Particulars 2016-2017 (Pro-rata for 177 days) 2017-2018 2018-2019 2016-2017 (Pro-rata for 141 days) Total 280.18 842.85 883.96 141.75

(Rs. in lakh)

Asset-XIII Particulars 2016-2017 (Pro-rata for 22 days) 2017-2018 2018-2019 Total 44.84 770.51 808.44

(Rs. in lakh)

Asset-XIV Particulars 2016-2017 (Pro-rata for days) 2017-2018 2018-2019 Total 153.50 499.40 536.26

(Rs. in lakh)

Asset-XV Asset-XVI Particulars 2017-2018 (Pro-rata for 106 days) 2018-2019 2017-2018 (Pro-rata for 20 days) 2018-2019 Total 192.09 698.18 55.67 1055.88

(Rs. in lakh)

Asset-XVII Asset-XVIII Particulars 2017-2018 (Pro-rata for 3 days) 2018-2019 2017-2018 (Pro-rata for 46 days) 2018-2019 Total 0.69 94.96 36.19 315.91

(Rs. in lakh)

Asset-XIX Asset-XX Particulars 2017-2018 (Pro-rata for 188 days) 2018-2019 2018-2019 (Pro-rata for 183 days) Total 121.57 232.76 83.33

(Rs. in lakh)

Asset-XXI Particulars 2015-2016 (Pro-rata for 263 days) 2016-17 2017-2018 2018-2019 Total 168.92 253.80 269.01 278.14

(b) The Annual Fixed Charges allowed for the Combined Asset for the 2019-2024 tariff period in this order are as follows:

(Rs. in lakh)

Asset 2019-20 2020-21 2021-22 2022-23 2023-24 Combined Asset 9863.31 9919.41 9834.48 9721.14 9599.94

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

135. This order disposes of Petition No. 670/TT/2020 in terms of the above discussions and findings.

Annexure-I

Asset-I 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2015-2016 (Rs. in lakh) 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 126.89 768.95 895.84 5.28 23.31 42.88 46.58 47.30 Total 126.89 768.95 895.84 23.31 42.88 46.58 47.30 Average Gross Block (Rs. in lakh) 441.46 812.20 882.10 895.84 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28 5.28
Asset-II 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2015-2016 (Rs. in lakh) 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 137.19 741.37 878.56 5.28 21.01 39.26 45.07 46.39 Total 137.19 741.37 878.56 21.01 39.26 45.07 46.39 Average Gross Block (Rs. in lakh) 397.94 743.62 853.56 878.56 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28 5.28
Asset-III 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 1243.35 360.22 1603.58 5.28 67.10 76.61 84.67 IT Equipment and Software 5.10 0.05 5.15 5.28 0.27 0.27 0.27 Total 1248.45 360.28 1608.73 67.37 76.88 84.94 Average Gross Block (Rs. in lakh) 1275.88 1456.02 1608.73 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28
Asset-IV 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2018-2019 (Rs. in lakh) Sub-station 976.23 0.00 976.23 5.28 51.54 Total 976.23 0.00 976.23 51.54 Average Gross Block (Rs. in lakh) 976.23 Weighted Average Rate of Depreciation (%) 5.28
Asset-V 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 202.10 1609.64 1811.74 5.28 51.09 93.58 95.66 Total 202.10 1609.64 1811.74 51.09 93.58 95.66 Average Gross Block (Rs. in lakh) 967.62 1772.44 1811.74 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28
Asset-VI 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 1558.35 354.46 1912.81 5.28 85.62 94.24 100.25 Total 1558.35 354.46 1912.81 85.62 94.24 100.25 Average Gross Block (Rs. in lakh) 1621.63 1784.79 1898.73 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28
Asset-VII 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2015-2016 (Rs. in lakh) 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 542.21 444.34 986.55 5.28 30.58 36.56 41.74 47.49 Total 542.21 444.34 986.55 30.58 36.56 41.74 47.49 Average Gross Block (Rs. in lakh) 579.16 692.34 790.53 899.52 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28 5.28
Asset-VIII 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 2203.38 954.89 3158.27 5.28 130.51 149.57 160.61 Total 2203.38 954.89 3158.27 130.51 149.57 160.61 Average Gross Block (Rs. in lakh) 2471.69 2832.77 3041.90 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28
Asset-IX 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 3595.91 1991.64 5587.55 5.28 215.58 256.20 283.06 Total 3595.91 1991.64 5587.55 215.58 256.20 283.06 Average Gross Block (Rs. in lakh) 4082.93 4852.18 5360.99 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28
Asset-X 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 179.70 399.97 579.67 5.28 10.95 19.63 28.72 Total 179.70 399.97 579.67 10.95 19.63 28.72 Average Gross Block (Rs. in lakh) 207.40 371.74 544.02 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28
Asset-XI 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 1541.90 3732.71 5274.60 5.28 161.73 248.57 266.79 Total 1541.90 3732.71 5274.60 161.73 248.57 266.79 Average Gross Block (Rs. in lakh) 3063.07 4707.69 5052.87 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28
Asset-XII 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) Sub-station 1472.04 41.58 1513.63 5.28 78.82 PLCC 11.61 5.20 16.81 6.33 0.90 IT Equipment and Software 70.64 0.03 70.67 5.28 3.73 Total 1554.29 46.81 1601.10 83.45 Average Gross Block (Rs. in lakh) 1577.70 Weighted Average Rate of Depreciation (%) 5.29
Asset-XIII 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 3029.35 548.32 3577.67 5.28 159.96 169.06 183.53 PLCC 33.56 0.41 33.98 6.33 2.12 2.14 2.15 IT Equipment and Software 141.33 1.75 143.08 5.28 7.46 7.51 7.55 Total 3204.24 550.48 3754.72 169.55 178.71 193.23 Average Gross Block (Rs. in lakh) 3204.51 3377.96 3652.93 Weighted Average Rate of Depreciation (%) 5.29 5.29 5.29
Asset-XIV 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 2580.48 829.77 3410.25 5.28 142.49 158.22 173.88 Total 2580.48 829.77 3410.25 142.49 158.22 173.88 Average Gross Block (Rs. in lakh) 2698.76 2996.52 3293.12 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28
Asset-XV 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 3319.57 481.47 3801.04 5.28 178.77 191.48 Total 3319.57 481.47 3801.04 178.77 191.48 Average Gross Block (Rs. in lakh) 3385.81 3626.54 Weighted Average Rate of Depreciation (%) 5.28 5.28
Asset-XVI 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 4476.18 455.57 4931.75 5.28 238.85 250.88 Total 4476.18 455.57 4931.75 238.85 250.88 Average Gross Block (Rs. in lakh) 4523.74 4751.52 Weighted Average Rate of Depreciation (%) 5.28 5.28
Asset-XVII 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 475.54 132.94 608.48 5.28 26.20 29.70 Total 475.54 132.94 608.48 26.20 29.70 Average Gross Block (Rs. in lakh) 496.12 562.59 Weighted Average Rate of Depreciation (%) 5.28 5.28
Asset-XVIII 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 1288.40 357.73 1646.13 5.28 74.10 83.55 IT Equipment and Software 5.40 0.06 5.46 0.29 0.29 Total 1293.80 357.79 1651.59 74.39 83.83 Average Gross Block (Rs. in lakh) 1408.84 1587.73 Weighted Average Rate of Depreciation (%) 5.28 5.28
Asset-XIX 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 1399.79 0.00 1399.79 5.28 73.91 73.91 Total 1399.79 0.00 1399.79 73.91 73.91 Average Gross Block (Rs. in lakh) 1399.79 1399.79 Weighted Average Rate of Depreciation (%) 5.28 5.28
Asset-XX 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2018-2019 (Rs. in lakh) Sub-station 842.14 249.86 1092.00 5.28 51.06 Total 842.14 249.86 1092.00 51.06 Average Gross Block (Rs. in lakh) 967.07 Weighted Average Rate of Depreciation (%) 5.28
Asset-XXI 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on COD 2014-19 2015-2016 (Rs. in lakh) 2016-2017 (Rs. in lakh) 2017-2018 (Rs. in lakh) 2018-2019 (Rs. in lakh) Sub-station 1248.03 497.93 1745.96 5.28 70.16 77.87 86.08 91.50 Total 1248.03 497.93 1745.96 70.16 77.87 86.08 91.50 Average Gross Block (Rs. in lakh) 1328.72 1474.90 1630.22 1733.01 Weighted Average Rate of Depreciation (%) 5.28 5.28 5.28 5.28

Annexure-II

Combined Asset 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 (%) Annual Depreciation as per Regulations Capital Expenditure as on 1.4.2019 2019-24 2019-2020 (Rs. in lakh) 2020-2021 (Rs. in lakh) 2021-2022 (Rs. in lakh) 2022-2023 (Rs. in lakh) 2023-2024 (Rs. in lakh) Sub-station 46151.19 2338.30 48489.49 5.28 2482.36 2542.66 2558.82 2560.25 2560.25 PLCC 33.98 0.00 33.98 6.33 2.15 2.15 2.15 2.15 2.15 IT Equipment and software 153.68 0.00 153.68 15.00 23.05 23.05 23.05 23.05 23.05 Total 46338.85 2338.30 48677.15 2507.56 2567.87 2584.02 2585.45 2585.45 Average Gross Block (Rs. in lakh) 47201.98 48344.14 48650.17 48677.15 48677.15 Weighted Average Rate of Depreciation (%) 5.31 5.31 5.31 5.31 5.31

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