25 TT 2023

CENTRAL ELECTRICITY REGULATORY COMMISSION
NEW DELHI
Petition No. 25/TT/2023
Coram:
Shri Jishnu Barua, Chairperson

Shri Arun Goyal, Member
Shri P. K. Singh, Member
Date of Order: 14.03.2024
In the matter of:
Approval under Regulation 86 of the Central Electricity Regulatory Commission (Conduct of

Business) Regulations, 1999 and the revision of truing up of the transmission tariff for the
2014-19 tariff block under the Central Electricity Regulatory Commission (Terms and
Conditions of Tariff) Regulations, 2014 and the revision/ determination of the transmission
tariff for the 2019-24 tariff block under the Central Electricity Regulatory Commission (Terms
and Conditions of Tariff) Regulations, 2019 for transmission asset under “Removal of
Constraints in 400 kV Bays Extensions at 400 kV Vemagiri Sub-station” in Southern Region.
And in the matter of:
Power Grid Corporation of India Limited,

“Saudamini”, Plot No. 2,
Sector 29, Gurgaon-122001 (Haryana). …Petitioner
Vs.
1. Karnataka Power Transmission Corporation Limited (KPTCL),

Kaveri Bhavan, Bangalore-560009.
2. Transmission Corporation of Andhra Pradesh Limited (APTRANSCO),

Vidyut Soudha, Hyderabad-500082.
3. Kerala State Electricity Board (KSEB),

Vaidyuthi Bhavanam,
Pattom, Thiruvananthapuram-695004.
4. Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO),

NPKRR Maaligai, 800, Anna Salai, Chennai-600002.
5. Electricity Department,
Government of Pondicherry, Pondicherry-605001.
Page 1 of 50
Order in Petition No. 25/TT/2023
6. Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL),
APEPDCL, P&T Colony,
Seethmmadhara, Vishakhapatnam, Andhra Pradesh.
7. Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL),

Srinivasasa Kalyana Mandapam Backside,
Tiruchanoor Road, Kesavayana Gunta, Tirupati-517501,
Chittoor District, Andhra Pradesh.
8. Central Power Distribution Company of Andhra Pradesh limited (APCPDCL),

Corporate Office, Mint Compound,
Hyderabad-500063, Telangana.
9. Northern Power Distribution Company of Andhra Pradesh Limited (APNPDCL),

Opp. NIT Petrol Pump, Chaitanyapuri, Kazipet,
Warangal-506004, Telangana.
10. Bangalore Electricity Supply Company Limited (BESCOM),

Corporate Office, K. R. Circle
Bangalore-560001, Karnataka.
11. Gulbarga Electricity Supply Company Limited (GESCOM),

Station Main Road, Gulburga, Karnataka.
12. Hubli Electricity Supply Company Limited (HESCOM),

Navanagar, PB Road,
HUBLI, Karnataka.
13. MESCOM Corporate Office,

Paradigm Plaza, AB Shetty Circle,
Mangalore-575001, Karnataka.
14. Chamundeswari Electricity Supply Corporation Limited (CESC),

927, L J Avenue,
Ground Floor, New Kantharaj Urs Road,
Saraswatipuram, Mysore-570009, Karnataka.
15. Electricity Department,

Government of Goa,
Vidyuti Bhawan, Panaji, Goa-403001.
16. Transmission Corporation of Telangana Limited,

Vidhyut Sudha, Khairatabad,
Hyderabad-500082.
Page 2 of 50
17. Tamil Nadu Transmission Corporation,
NPKRR Maaligai, 800, Anna Salai,
Chennai-600002. …Respondent(s)
For Petitioner : Shri Zafrul Hasan, PGCIL

Shri Mohd. Mohsin, PGCIL
For Respondents : Shri S. Vallinayagam, Advocate, TANGEDCO

Shri M. Sethuraman, TANGEDCO
ORDER
Power Grid Corporation of India Limited has filed the instant petition for revising the trued
up tariff of the 2014-19 tariff period under the Central Electricity Regulatory Commission (Terms
and Conditions of Tariff) Regulations, 2014 (hereinafter referred to as “the 2014 Tariff
Regulations”) and the revision/ determination of the tariff of the 2019-24 tariff period under the
Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
(hereinafter referred to as “the 2019 Tariff Regulations”) for transmission assets under “Removal
of Constraints in 400 kV Bays Extensions at 400 kV Vemagiri Sub-station” in Southern Region
(hereinafter referred to as the “transmission assets”).
2. The Petitioner has made the following prayers in the instant petition:
“1) Approve the estimated Completion cost and additional capitalization incurred during 2014-
19, and also Actual/projected additional capitalization during 2019-24 tariff block.
2) Approve the revised trued-up Transmission Tariff for 2014-19 block and transmission tariff for
2019-24 block for the assets covered under this petition, as per para 11.2 and 12.0 above.
3) Allow the petitioner the shifting cost of line reactors as part of capital cost and also allow the
capital cost of 02 nos shifted reactor under instant petition.
4) Allow the petitioner to recover the shortfall or refund the excess Annual Fixed Charges, on
account of Return on Equity due to change in applicable Minimum Alternate/Corporate Income
Tax rate as per the Income Tax Act, 1961 (as amended from time to time) of the respective
financial year directly without making any application before the Commission as provided in Tariff
Regulation 2014 and Tariff regulations 2019 as per para 11.2 and 12.0 above for respective
block.
Page 3 of 50
5) 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.
6) 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.
7) Allow the petitioner to bill and adjust impact on Interest on Loan due to change in Interest rate
on account of floating rate of interest applicable during 2019-24 period, if any, from the
respondents.
8) Allow the Petitioner to claim the overall security expenses and consequential IOWC on that
security expenses separately.
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) for implementation of the transmission project was
accorded by the Board of Directors of the Petitioner’s company on 27.1.2016, vide
Memorandum Ref. No.: C/CP/Removal of Constraints in Vemagiri Sub-station
dated 19.2.2016, at an estimated cost of ₹20788 lakh, including IDC of ₹1295 lakh
(based on August, 2015 price level).
b. The scope of the work as per IA is as follows:
Page 4 of 50
Transmission Lines:
• Both circuits of one LILO D/C portion of Simhadri-Vijaywada 400 kV Line at
Vemagiri-I (AP) shall be LILOed at Vemagiri-II (PO) (D/C Portion and multi-
circuit Portion).
• Both circuits of the Second LILO D/C portion of the Simhadri-Vijayawada 400
kV Line at Vemagiri-I (AP) shall be looped in at Vemagiri-II (PO). There shall
be NO LOOP OUT. The open section of the 400 kV D/C line from Vemagiri-I
(AP) shall be used to terminate the Kota Line.
Sub-stations:
• 400 kV Vemagiri-II (PG) GIS Sub-station Extension.
i. Line Bays: 06 numbers
ii. Shifting of 2 numbers of 63 MVAr reactors from Gazuwaka to Vemagiri-
II (PG) for utilization on Simhadri-II-Vemagiri-II (PG) 400 kV D/C Line.
c. The Petitioner in Petition No.59/TT/2020 claimed ₹28.77 lakh as the cost of
shifting the two reactors from Gazuwaka to Vemagiri and stated that the
transmission charges for the two reactors would continue to be claimed under the
original transmission project, i.e. “Augmentation of capacity of Gazuwaka HVDC
back to back project (500 MW) in Southern and Eastern Region” (hereinafter
referred to as “Gazuwaka Project”). However, the Commission vide order dated
17.5.2021 observed that the two reactors should be decapitalized from the
Gazuwaka Project and included in the instant transmission project, i.e. “Removal
of Constraints in 400 kV Bays Extensions at 400 kV Vemagiri Sub-station” in the
Southern Region. The relevant portion of the order dated 17.5.2021 is as follows:
Page 5 of 50
“Shifting of Reactors at Gazuwaka
15. The Petitioner has submitted that originally the two 63 MVAr reactors at
Gazuwaka were included in Augmentation of capacity of Gazuwaka HVDC back to
back project (500 MW) in Southern Region and Eastern Region for Vijayawada-
Gazuwaka 400 kV D/C Transmission Line. The Commission approved the
transmission tariff for these assets vide order dated 23.10.2006 in Petition No.
138/2005. The Commission vide order dated 17.12.2015 in Petition No. 509/TT/2014
trued up the tariff of the 2009-14 tariff period. The Vijaywada-Gazuwaka 400 kV D/C
line was LILOed initially at Vemagiri-I on 1.4.2008 under SRSS VI (Petition No.
202/2010). Subsequently, LILO of Vijaywada-Gazuwaka at Vemagiri was further
LILOed at Simhadri-II on 1.8.2011 under Transmission System associated with
Simhadri-II Generation Projects (Petition No. 58/2011). However, tariff for these two
reactors are being claimed and approved in the original Petition i.e. Petition No.
509/TT/2014 for Augmentation of capacity of Gazuwaka HVDC back to back project
(500 MW) in Southern and Eastern Region. As these reactors at Gazuwaka end of
Simhadri II-Gazuwaka Transmission Line have been shifted to Vemagiri II end of
Simhadri II-Vemagiri-II 400 kV D/C Transmission Line, the Petitioner has submitted
that the cost and tariff of the reactors has not been considered in the instant Petition.
However, only the shifting cost of the reactors of ₹28.77 lakh has been considered
under the head of 400kV equipment (LA, CSD, BPI etc). It is observed from Form 5
that the Petitioner has included amount of ₹28.77 lakh towards shifting cost of
reactor in the estimated completion cost.
16. In a similar case, the Commission in order dated 28.9.2017 in Petition

No.195/TT/2016 held that the assets that are shifted from one transmission system
to another should be decapitalised in the books of account of the transmission
system where the asset was originally put into commercial operation and capitalised
in the books of account of the transmission system where it is shifted and the
petitioner shall seek fresh determination of tariff from the date of capitalisation under
the transmission system where the asset is shifted. The relevant portion of order
dated 28.9.2017 in Petition No. 195/TT/2016 is as follows:
“6. The tariff of “40% FSC at Lucknow Sub-station” was allowed since 1.6.2007
and it has completed 10 years of its useful life. It is a case of inter-unit transfer.
Since the proposed shifting of FSC from Lucknow to Sohawal is of permanent
nature and as it involves two different schemes covered under different
Investment Approvals, there will be a mismatch of recovery of the cost of the
“40% FSC” over the 25 years. In order to address this issue, the Commission
in the past has decided that in case of inter-unit transfer, the assets shall be
decapitalised in the books of accounts of the transmission system where the
asset was originally commissioned and capitalised in the books of accounts of
the transmission system where it is transferred. In the instant case, the 40%
FSC has been transferred from Lucknow to Sohawal end. Therefore, the said
assets need to be de-capitalised from the books of accounts of the assets at
Lucknow and capitalised in the books of account of assets at Sohawal. The
petitioner is directed to carry out the decapitalisation and corresponding
capitalisation of the assets within a period of six months and claim the revised
tariff of the “40% FSC” at Sohawal Substation at the time of truing-up. In so far
as the expenditure involved in inter-unit transfer is concerned, this is in the
nature of revenue expenditure and is allowed as a onetime pass through.
Since the “40% FSC” was dismantled and shifted to Sohawal and thereafter,
Page 6 of 50
commissioned on 12.2.2016, the tariff of the assets shall be determined afresh
with reference to the COD as 12.2.2016. Accordingly, the petitioner after
carrying out necessary decapitalisation of the assets at Lucknow and
capitalisation at Sohawal Sub-station shall seek fresh determination of the tariff
with effect from 12.2.2016. Therefore, the tariff for “40% FSC at Sohawal Sub-
station” is not allowed in this order.”
17. In the instant case, the petitioner has shifted the two 63 MVAR Reactors from
Gazuwaka to Vemagiri and utilized these reactors on Simhadri-Vemagiri 400 kV D/C
Transmission Line. Though the Petitioner has shifted the Reactors, the tariff and
capital cost of these two reactors continued to be recovered under Augmentation of
capacity of Gazuwaka HVDC back to back project (500 MW) Southern and Eastern
Regions. In view of the Commission’s order dated 28.9.2017 in Petition No.
195/TT/2016 and similar other matters, the petitioner is directed to de-capitalize the
two 63 MVAR Reactors from Augmentation of capacity of Gazuwaka HVDC back to
back project (500 MW) Southern and Eastern Regions and re-capitalize the cost of
the reactors in the instant transmission project. Accordingly the Petitioner is granted
liberty in the instant petition to re-capitalise the two reactors in the transmission
project and claim tariff for the transmission project afresh.
18. It is observed that the Petitioner has claimed an amount of ₹28.77 lakh as part
of the capital cost, towards dismantling, shifting and transportation of the two 63
MVAR reactors. We are of the view that expenditure towards shifting, dismantling
and transportation are of the nature of revenue expenditure and cannot be
capitalized. Accordingly, amount of ₹28.77 towards transportation of reactor is not
capitalized and excluded from the capital cost for the purpose of computation of
tariff.”
d. Accordingly, the Petitioner has decapitalised the two reactors from the Gazuwaka
Project and recapitalized the two reactors in the instant transmission project as per
the directions of the Commission in an order dated 17.5.2021 in Petition No.
59/TT/2020 and has claimed the revised trued up transmission charges for the
2018-19 tariff period and determination of tariff for the 2019-24 tariff period.
e. The transmission assets were put into commercial operation on 29.3.2018. The
details of the assets are as follows:
Asset COD
Asset-I: a) Both circuits of one LILO D/C portion of Simhadri-Vijayawada 400kV
Line at Vemagiri-I (AP) shall be LILOed at Vemagiri-II (PG) (D/C Portion and
multi-circuit Portion) along with associated bays at Vemagiri-II (PG); b) Both 29.3.2018
circuits of Second LILO D/C portion of Simhadri- Vijayawada 400 kV Line at
Vemagiri-I (AP) shall be looped in at Vemagiri-II (PG). There shall be NO LOOP
Page 7 of 50
OUT. The open section of the 400 kV D/C line from Vemagiri-I (AP) shall be used
for termination of kV Kota Line alongwith associated bays at Vemagiri-II (PG).
Asset-I(a) Shifting of 2 numbers of 63 MVAr reactors from Gazuwaka to Vemagiri-
29.3.2018
II (PG) for utilization on Simhadri-II-Vemagiri-II (PG) 400 kV D/C Line
f. The entire scope of the transmission project is covered under the instant petition.
g. As per IA, the transmission asset was scheduled to be put into commercial
operation within 30 months from the date of IA, i.e. by 26.7.2018. The transmission
asset was put into commercial operation on 29.3.2018.
h. The transmission tariff for the transmission asset from COD to 31.3.2019 was
determined vide order dated 19.9.2018 in Petition No. 220/TT/2017.
i. The revised trued-up transmission tariff claimed by the Petitioner for the 2014-19
tariff period is based on the trued-up tariff allowed in an order dated 17.5.2021 in
Petition No. 59/TT/2020.
j. The instant petition covers the revision of the trued-up tariff for the 2014-19 tariff
period and the revision/ determination of tariff for the 2019-24 tariff block for the
transmission assets.
4. The trued-up transmission tariff based on admitted capital cost of ₹12983.91 lakh as on
COD and actual additional capitalization of ₹2424.66 lakh during 2014-19 for Asset-I was
approved by the Commission vide order dated 17.5.2021 in Petition No. 59/TT/2020 for the
2014-19 tariff period, details of which are as follows:
(₹ in lakh)
FR Expenditure Capital cost Add Cap 2014-2019 Estimated
apportioned up to COD allowed as (admitted by the completion cost
cost (As claimed) on COD Commission) (as allowed)
2017-18 2018-19
20788.00 13339.63 12983.91*#@ 559.34 1865.32** 15408.57
(*) Rs. 321.77 lakh Accrual IDC adjusted from COD and added in respective year of discharge.
(#) the capital cost has been adjusted on account computational differences of IDC amounting Rs 5.18
lakh.
Page 8 of 50
@ Rs. 28.77 lakh deducted from the Capital Cost as on COD on account of transportation cost of reactor
shifting
** Cost allowed after addition of cash IDC of Rs. 321.77 lakh discharge after COD and deduction of
excess initial spares by Rs.13.51 lakh.
5. The trued-up transmission tariff approved vide order dated 17.5.2021 in Petition No.
59/TT/2020 and the revised true-up transmission tariff claimed by the Petitioner for the 2014-19
tariff period for Asset-I and Asset-I(a) in the instant petition are as follows:
(` in lakh)
Particulars 2017-18 2018-19
AFC approved vide order dated 17.5.2021 in Petition No.
21.55 2819.43
59/TT/2020 for Asset-I
AFC claimed by the Petitioner in the instant petition for
21.39 2801.20
Asset-I
AFC approved vide order dated 17.5.2021 in Petition No.
- -
59/TT/2020 for Asset-I(a)
AFC claimed by the Petitioner in the instant petition for
0.55 73.04
Asset-I(a)
6. The transmission tariff approved vide order dated 17.5.2021 in Petition No. 59/TT/2020
and the trued transmission tariff claimed by the Petitioner for the 2019-24 tariff period for Asset-
I and Asset-I(a) in the instant petition are as follows:
(` in lakh)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
AFC approved vide order dated 17.5.2021 in
2782.57 2852.25 2788.11 2724.02 2658.73
Petition No. 59/TT/2020 for Asset-I
AFC claimed by the Petitioner based on true-
2640.26 2607.60 2579.37 2645.52 2697.91
up in the instant petition for Asset-I
AFC approved vide order dated 17.5.2021 in
- - - - -
Petition No. 59/TT/2020 for Asset-I (a)
AFC claimed by the Petitioner based on true-
68.95 39.93 39.47 38.91 38.35
up in the instant petition for Asset-I(a)
7. The Respondents, mainly beneficiaries of the Southern Region, are distribution licensees,
transmission licensees and power departments which are procuring transmission service from
the Petitioner.
Page 9 of 50
8. The Petitioner has served the petition on the Respondents. TANGEDCO, Respondent
No. 4, has filed its reply vide affidavit dated 25.9.2023. The Petitioner vide affidavit dated
26.9.2023 have filed its rejoinder to the reply of TANGEDCO.
9. The hearing in this matter was held on 27.9.2023, and the order was reserved.
10. This order is issued considering the submissions made by the Petitioner, vide affidavit
dated 26.8.2022, TANGEDCO’s filed reply, vide affidavit dated 25.9.2023, and the Petitioner’s
rejoinder, vide affidavit dated 26.9.2023 in the matter.
11. Having heard the representatives of the Petitioner, learned counsels for the Respondents
and perused the material on record, we proceed to dispose of the petition.
REVISION OF TRUING UP FOR THE 2014-19 TARIFF PERIOD
12. The Petitioner has claimed the following trued-up tariff for the transmission asset for the
2014-19 tariff period:
(₹ in lakh)
Asset-I
(pro-rata for 3 days)
Depreciation 5.72 760.03
Interest on Loan 5.68 733.96
Return on Equity 6.39 851.67
O&M Expenses 3.06 385.38
Interest on Working Capital 0.54 70.16
Total 21.39 2801.20
(₹ in lakh)
Asset-I(a)
(pro-rata for 3
days)
Total 0.55 73.04
Page 10 of 50
13. The details of the trued-up Interest on Working Capital (IWC) claimed by the Petitioner
for the transmission asset for the 2014-19 tariff period are as follows:
(₹ in lakh)
Asset-I
2017-18
Particulars (pro-rata for 3 2018-19
days)
Maintenance spares 55.95 57.81
Receivables 433.85 466.87
Total working capital 520.88 556.80
Rate of interest (in %) 12.60 12.60
Interest on working capital 0.54 70.16
(₹ in lakh)
Asset-I(a)
2017-18
Particulars (pro-rata for 2018-19
3 days)
Maintenance spares 0.00 0.00
Receivables 11.19 12.17
Total working capital 11.19 12.17
Rate of interest (in %) 12.60 12.60
Capital Cost
14. The Commission, vide order dated 17.5.2021 in Petition No. 59/TT/2020 has trued-up the
transmission tariff for Asst-I for the tariff period 2014-19 based on the admitted capital cost as
on COD and ACE and it is as follows:
(₹ in lakh)
FR apportioned Expenditure up Add Cap 2014-2019 Cost as on
approved cost to COD 2017-18 2018-19 31.3.2019
20788.00 12983.91 559.34 1865.32 15408.57
15. The Petitioner, in the instant petition, has claimed the following capital cost as on COD
and additional capital expenditure in 2017-18 and 2018-19:
Page 11 of 50
(₹ in lakh)
Add Cap 2014-2019
FR apportioned Expenditure (as per Auditor’s Cost as on
Assets
approved cost up to COD certificate) 31.3.2019
2017-18 2018-19
Asset I 20788.00 13339.63# 559.34 1557.06 15456.03
Asset-I(a) -- 619.62* -- -- 619.62
#Capital cost includes transportation cost of ₹28.77 lakh for shifting of 02 numbers of Reactors from
Gazuwaka to Vemagiri Sub-station and also includes ₹321.77 lakh i.e. undischarged portion of IDC which
was discharged during FY 2018-19
*As per auditor certificate ₹619.62 lakh pertains to 2 numbers reactors, which has been shifted from
Gazuwaka under the project “Augmentation of capacity of Gazuwaka HVDC Back to Back project (500
MW), and capitalized in the subject project w.e.f. 29.3.2018. The same has been shown in the books of
accounts in FY 2021-22 with retrospective Capitalization date as 28.3.2018.
16. The Commission, in order dated 17.5.2021 in Petition No. 59/TT/2020, held as follows:
“17. In the instant case, the petitioner has shifted the two 63 MVAR Reactors from Gazuwaka to
Vemagiri and utilized these reactors on Simhadri-Vemagiri 400 kV D/C Transmission Line.
Though the Petitioner has shifted the Reactors, the tariff and capital cost of these two reactors
continued to be recovered under Augmentation of capacity of Gazuwaka HVDC back to back
project (500 MW) Southern and Eastern Regions. In view of the Commission’s order dated
28.9.2017 in Petition No. 195/TT/2016 and similar other matters, the petitioner is directed to de-
capitalize the two 63 MVAR Reactors from Augmentation of capacity of Gazuwaka HVDC back
to back project (500 MW) Southern and Eastern Regions and re-capitalize the cost of the reactors
in the instant transmission project. Accordingly the Petitioner is granted liberty in the instant
petition to re-capitalise the two reactors in the transmission project and claim tariff for the
transmission project afresh.”
17. The Petitioner has submitted that 02 numbers of 63 MVAR line reactors have been de-
capitalized from its original project, “Augmentation of capacity of Gazuwaka HVDC back to back
project (500 MW) Southern and Eastern Regions”. The Petitioner has submitted that the
Commission, in an order dated 11.4.2022 in Petition No. 115/TT/2020, approved the tariff
decapitalising these two reactors w.e.f. 24. 6.2017. The Petitioner has submitted that as per the
directions in an order dated 17.5.2021 in Petition No. 59/TT/2020, the two reactors are re-
capitalized in the instant transmission project. Accordingly, the Petitioner has claimed tariff for
2014-19 and 2019-24 under the instant petition after recapitalization of the two numbers of
reactor at Vemagiri Sub-station w.e.f. 29.3.2018.
Page 12 of 50
18. The Petitioner has submitted that expenditure towards shifting of reactors is part of IA
has also been approved in 38th SCM dated 7.3.2015. Hence, the cost incurred towards
dismantling, shifting and transporting the two 63 MVAR reactors is part of capital expenditure
and has prayed to consider the same while allowing the tariff. The expenditure towards shifting,
dismantling and transportation charges was excluded from the capital cost of Asset-I, as it was
in the nature of revenue expenditure. The relevant portion of the said order dated 17.5.2021 in
Petition No. 59/TT/2020 is as follows:
“18. It is observed that the Petitioner has claimed an amount of ₹28.77 lakh as part of the capital
cost, towards dismantling, shifting and transportation of the two 63 MVAR reactors. We are of the
view that expenditure towards shifting, dismantling and transportation are of the nature of revenue
expenditure and cannot be capitalized. Accordingly, amount of ₹28.77 towards transportation of
reactor is not capitalized and excluded from the capital cost for the purpose of computation of
tariff.”
19. TANGEDCO has submitted that the Commission has already rejected the Petitioner’s
claim, and the said expenditure is of the nature of the revenue expenditure. Therefore, the same
may be disallowed.
20. We have considered the submissions of the Petitioner. As stated above, the expenditure
towards shifting, dismantling and transportation charges was excluded from the capital cost of
Asset I, as it was in the nature of revenue expenditure, in an order dated 17.5.2021 in Petition
No.59/TT/2020. We do not find any reason to change our earlier decision in order dated
17.5.2021. Accordingly, the Petitioner’s claim for including the same in the capital cost of Asset
I is disallowed.
21. The Commission has also already deliberated on the IDC calculation in its order dated
17.5.2021 in Petition No. 59/TT/2020. However, the Petitioner has revised the details of the
opening loan as provided in Form-9C with respect to Asset-I. Hence, based on the information
submitted by the Petitioner and the IDC computation sheet, the IDC allowed is as follows:
Page 13 of 50
(₹ in lakh)
IDC claimed by Entitled IDC disallowed as on Un-discharged IDC allowed
Petitioner (as per IDC up to COD due to portion of entitled on cash basis
Auditor Certificate) COD computation IDC as on COD as on COD
difference
A B C= A-B D=B-E E
519.97 510.25 9.72 317.23 193.02
Recapitalization of Asset-I(a)
22. The Petitioner has submitted that 02 numbers reactors were decapitalized from its original
project covered under Petition No. 115/TT/2020 w.e.f. 24.6.2017, and the same is being
recapitalized under the instant petition w.e.f. 29.3.2018 with a time gap of 278 days. The
Petitioner has submitted that during this time period (278 days), the Petitioner had to service its
debt in the form of Interest on Loan and, therefore, the Petitioner is entitled to carrying cost. The
details of the carrying cost claimed by the Petitioner are as follows:
(₹ in lakh)
Original Normative loan Interest Carrying cost (normative Pro-rata
gross block (Debt: Equity: rate (in %) loan X interest rate) (for carrying cost
73:27) 2017-18) (for 278 days)
619.62 452.32 7.7405 35.01 26.67
23. The Commission has considered the Petitioner’s submissions. The Commission in an
order dated 11.4.2022 in Petition No. 115/TT/2020 approved the de-capitalization of two 63
MVAR reactors at Gazuwaka Sub-station on 24.6.2017.
24. As per the observations made by the Commission in an order dated 17.5.2021 in Petition
No.59/TT/2020, the transmission asset is allowed to be re-capitalized, minus the expenditure on
shifting, dismantling and transportation. However, the expenditure on shifting, dismantling and
transportation is allowed to be recovered directly from the beneficiaries covered under the instant
petition as a one-time exercise.
Page 14 of 50
25. The Petitioner has claimed an amount of ₹26.67 lakh towards carrying cost from
24.6.2017 to 29.3.2018. We have considered the submissions of the Petitioner. As per
Regulation 9(6)(a) of the 2014 Tariff Regulations, the capital cost of the assets forming part of
the project but “not in use” should be excluded from the capital cost. The Regulation 9(6) of 2014
Tariff Regulations provides as follows:
“9. Capital Cost:

……
(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;”.
26. We have considered the date of decapitalization as 24.6.2017 and the date of
recapitalization of the reactors as 29.3.2018 as per the order dated 11.4.2022 in Petition No.
115/TT/2020. Further, as per Regulation 9(6) of the 2014 Tariff Regulations, the transmission
asset ‘not in use’ shall be excluded from the capital cost of the existing project. In the instant
case, the reactors were not in use from 24.6.2017 to 29.3.2018. Accordingly, as provided in
Regulation 9(6) of the 2014 Tariff Regulations, transmission charges are not allowed for the
period from 24.6.2017 to 29.3.2018 as it was not in use. The actual date of de-capitalization of
the reactors is already approved as 24.6.2017 and the Petitioner has claimed the recapitalization
date as 29.3.2018. As per Regulation 9(6) of the 2014 Tariff Regulations, there is no provision
for allowing carrying cost. Thus, the carrying cost claimed by the Petitioner is not admissible.
Page 15 of 50
The details of assets recapitalized as per the order dated 11.4.2022 in Petition No. 115/TT/2020
is as follows:
(₹ in lakh)
Original book
Equipment Original year of Debt Equity Cumulative Cumulative
value of
Recapitalised capitalization ratio Depreciation Repayment
asset
2 Numbers of line
reactors at 2006-07 619.62 73:27 358.80 360.31
Gazuwaka
Initial Spares
27. Regulation 13(d) of the 2014 Tariff Regulations provides that Initial Spares shall be
capitalised as a percentage of plant and machinery cost up to the cut-off date, subject to the
following ceiling norms:
“(d) Transmission System

(i) Transmission line : 1.00%
(ii) Transmission sub-station (Green Field) : 4.00%
(iii) Transmission sub-station (Brown Field) : 6.00%
(iv) Gas Insulated Sub-station : 5.00%
(iv) Series Compensation devices and HVDC Station : 4.00%
(v) Communication System : 3.5%”
28. The Petitioner has submitted that the Initial Spares for the transmission line and sub-
station (GIS) head has been calculated for the project and is excess w.r.t. the specified limit as
per Regulation 13 of the 2014 Tariff Regulation. The Petitioner, however, submitted that the
Appellate Tribunal for Electricity (the APTEL) vide judgment dated 14.9.2019 in Appeal No. 74
of 2017 has allowed the appeal of the Petitioner and has held that initial spares have to be seen
as a percentage of total project cost and not individual cost of the asset. Accordingly, the
Petitioner has claimed the following initial spares for Asset I:
Page 16 of 50
(₹ in lakh)
Ceiling Initial spares
Plant & Machinery Initial Excess
limit worked out
Assets Particulars cost up to cutoff spares initial
(in %) D = [(A-B)*C /(100-
date (A) claimed (B) spares
(C) C)]
Transmission
Asset-I 8675.22 102.76 1.0 86.59 16.17
line
Sub-station
Asset-I 6489.64 447.64 5.0 317.97 129.67
(GIS)
29. TANGEDCO has submitted that the Commission has restricted the initial spares based
on the ceiling limit of individual assets in the original petition. The contracts for each element of
the project were awarded to different agencies and executed in different time periods and,
therefore, it is not appropriate to combine the initial spares exclusively permitted to be used as
commissioning spares. TANGEDCO has submitted that the Petitioner should decapitalize the
unused initial spares after the COD of the asset since the requirement of spares after COD will
be taken care of from O&M Expenses. Hence, the Respondent requested that the initial spares
may be restricted based on the capital cost of individual assets as restricted in the original order.
30. We have considered the submissions of the Petitioner and TANGEDCO. APTEL in
judgment dated 14.9.2019 in Appeal No. 74 of 2017, has observed that the initial spares are to
be allowed on the basis of the individual cost initially and later on at the time of truing up on the
basis of the total project cost. The relevant portion of the judgement dated 14.9.2019 is 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.”
31. In the instant case, the Petitioner has claimed initial spares for only Asset-I consisting of
the transmission line and the bays in the sub-station. There is no other claim for initial spares by
Page 17 of 50
the Petitioner. Initial spares are to be allowed for Asset-I as per the norm of 1% and 5% for the
transmission line portion and the bays in the sub-station, respectively. There is no combining of
assets in the instant case, and therefore, APTEL’s observation that the initial spares are to be
allowed based on the individual asset-wise cost initially and subsequently on the basis of the
overall project cost is not applicable in the present case.
32. It is observed that the Petitioner has claimed revised initial spares based on the revised
capital cost as on the COD of the transmission assets. We approve the Initial Spares as per the
norm for transmission line and sub-station under Regulation 13(d) of the 2014 Tariff Regulations
considering the revised capital cost claimed by the Petitioner, excluding the cost of ₹28.77 lakh
towards shifting of the reactors.
(₹ in lakh)
Plant & Ceiling Initial spares
Initial Excess
Machinery cost limit worked out
Assets Particulars spares initial
up to cutoff date (in %) D = [(A-B)*C /(100-
claimed (B) spares
(A) (C) C)]
Asset-I Transmission line 8675.22 102.76 1.00 86.59 16.17
Asset-I Sub-station (GIS) 6460.87 447.64 5.00 316.49 131.15
Capital cost as on COD
33. The capital cost allowed as on COD is as follows:
(₹ in lakh)
Capital cost Less: IDC due to Less: reactor Less: excess Capital
as per Computati Undischarged shifting initial spares cost as
Auditor on charges disallowed on COD
Certificate difference
13339.63 9.72 317.23 28.77 147.32 12836.59
Page 18 of 50
Additional Capital Expenditure
34. The Petitioner has claimed the following ACE for Asset-I and submitted the Auditor’s
Certificate in support of the same. The Petitioner has not claimed any additional capitalization
for Asset-I (a).
(₹ in lakh)
Particulars Additional Capitalization Add: Accrual IDC
2017-18 2018-19 discharged in 2018-19
Asset-I 559.34 1557.06 326.68
35. The Petitioner has submitted that the Asset-I has been capitalized w.e.f. 29.3.2018, and,
accordingly, the cut-off date is 31.3.2021. Thus, additional capital expenditure during 2014-19
falls within the cut-off date. The Petitioner has submitted that the additional capitalization is on
account of any undischarged liability towards final payment/withheld payment due to contractual
exigencies for works executed within the cut-off date and work executed within the cut-off date.
The additional capitalization for the years 2017-18 and 2018-19 assets has been claimed under
Regulation 14(1)(i) and Regulation 14(1)(ii) of the 2014 Tariff Regulations.
36. We have considered the submissions of the Petitioner. The ACE claimed by the Petitioner
for the years 2017-18 and 2018-19 is allowed under Regulation 14(1)(i) and Regulation 14(1)(ii)
of the 2014 Tariff Regulations. Accordingly, the ACE approved for Asset-I for 2017-18 and 2018-
19 is as follows:
(₹ in lakh)
Particulars ACE
2017-18 2018-19
ACE claimed as per Auditor’s Certificate 559.34 1557.06
Add: IDC Discharged 0.00 317.23
Total ACE allowed 559.34 1874.29
37. Accordingly, the capital cost of the transmission assets considered for 2018-19 is as
follows:
Page 19 of 50
(₹ in lakh)
Assets Capital cost ACE ACE allowed Capital cost
as on COD allowed for for 2018-19 as on
2017-18 31.3.2019
Asset-I 12836.59 559.34 1874.29 15270.22
Asset-I(a) 619.62 0.00 0.00 619.62
Debt-Equity Ratio
38. The Petitioner has considered the debt-equity ratio of 70:30 as on COD of Asset-I. The
same is approved, which is as follows:
Amount as on Amount as on
Asset-I COD (in %) 31.3.2019 (in %)
(₹ in lakh) (₹ in lakh)
Debt 8985.61 70.00 10689.15 70.00
Equity 3850.98 30.00 4581.07 30.00
Total 12836.59 100.00 15270.22 100.00
39. The Petitioner has considered the debt-equity ratio of 73:27 as on COD of Asset-I(a). The
Commission has approved the debt-equity ratio of 72.97:27.03 vide order dated 11.4.2022 in
Petition No. 115/TT/2020. Accordingly, the debt-equity ratio of 72.97:27.03 for Asset-I(a) has
been considered, which is as follows:
Amount as on Amount as on
Asset-1(a) COD (in %) 31.3.2019 (in %)
(₹ in lakh) (₹ in lakh)
Debt 452.14 72.97 452.14 72.97
Equity 167.48 27.03 167.48 27.03
Total 619.62 100.00 619.62 100.00
Depreciation
40. Depreciation has been allowed as per the methodology provided in Regulation 27 of the
2014 Tariff Regulations. The Gross Block as on COD has been depreciated at Weighted
Average Rate of Depreciation (WAROD). WAROD has been worked out (Annexure-I) after
considering the depreciation rates of assets as prescribed in the 2014 Tariff Regulations. Since
Asset-I(a) was not operational from 24.6.2017 to 29.3.2018, the accumulated depreciation as
Page 20 of 50
allowed till the date of de-capitalization has been considered, and the useful life elapsed has not
been considered as it was not in use close to a year. Accordingly, the revised trued-up
depreciation allowed for the transmission assets for the 2017-19 period is as follows:
(₹ in lakh)
Asset-I
(pro-rata
for 3 days)
A Opening Gross Block 12836.59 13395.93
Addition during the year 2014-19 due to projected
B ACE 559.34 1874.29
C Closing Gross Block (A+B) 13395.93 15270.22
D Average Gross Block (A+C)/2 13116.26 14333.07
E Total Depreciable Value (90%*D) 11804.63 12899.76
Weighted average rate of Depreciation (WAROD) (in
F %) 5.29 5.29
G Lapsed useful life at the beginning of the year (Year) 0 0
H Balance useful life at the beginning of the year (Year) 25 25
I Depreciation during the year (D*F) 5.70 758.17
J Cumulative Depreciation at the end of the year 5.70 763.87
Remaining Aggregate Depreciable Value at the end 11798.93 12135.89
K of the year
(₹ in lakh)
Asset-I(a)
(pro-rata for
3 days)
A Opening Gross Block 619.62 619.62
B Addition during the year 2014-19 due to projected ACE 0.00 0.00
C Closing Gross Block (A+B) 619.62 619.62
D Average Gross Block (A+C)/2 619.62 619.62
E Total Depreciable Value (90%*D) 557.66 557.66
F Weighted average rate of Depreciation (WAROD) (in %) 5.28 5.28
G Lapsed useful life at the beginning of the year (Year) 9 10
H Balance useful life at the beginning of the year (Year) 16 15
I Depreciation during the year (D*F) 0.27 32.72
J Cumulative Depreciation at the end of the year 359.07 391.78
Remaining Aggregate Depreciable Value at the end of the
K year 198.59 165.87
• Cumulative Depreciation at opening has been considered as ₹358.80 lakh
Page 21 of 50
Interest on Loan (IoL)
41. The Petitioner submitted that while filing the tariff petition for the 2014-19 period, the
Petitioner had prayed for allowing the floating rate of interest on loan adjustments. As per the
Commission’s order dated 19.9.2018 in Petition No. 206/TT/2017, the weighted average rate of
IoL has been considered, based on rate prevailing as on 1.4.2014 and, accordingly, the floating
rate of interest on actual, applicable from time-to-time, if any, during 2014-19 tariff will be
considered at the time of truing up or next revision of tariff.
42. The Petitioner has submitted that the Interest on Loan is claimed for Asset I(a) considering
the normative loan at 73% of the capital cost, subtracting the loan amount repayment of ₹360.31
lakh. Weighted Average Rate of Interest (WAROI), as approved vide order dated 11.4.2022 in
Petition No. 115/TT/2020, has been considered.
43. We have gone through the submissions of the Petitioner. In the case of Asset-I(a), it is
observed that the normative loan has to be considered at 72.97% instead of 73%. In view of the
above, the revised trued up Interest on Loan (IoL) calculated in accordance with Regulation 26
of the 2014 Tariff Regulations for the transmission assets for the 2017-19 period is as follows:
(₹ in lakh)
Asset-I
(pro-rata
for 3 days)
A Gross Normative Loan 8985.61 9377.15
B Cumulative Repayments up to Previous Year 0.00 5.70
C Net Loan-Opening (A-B) 8985.61 9371.45
D Addition due to ACE 391.54 1312.00
E Repayment during the year 5.70 758.17
F Net Loan-Closing (C+D-E) 9371.45 9925.28
G Average Loan (C+F)/2 9178.53 9648.36
H Weighted Average Rate of Interest on Loan (in %) 7.506 7.588
I Interest on Loan (G*H) 5.66 732.16
Page 22 of 50
(₹ in lakh)
Asset-I(a)
(pro-rata for
3 days)
A Gross Normative Loan 452.14 452.14
B Cumulative Repayments up to Previous Year 360.31 360.58
C Net Loan-Opening (A-B) 91.83 91.56
D Addition due to ACE 0.00 0.00
E Repayment during the year 0.27 32.72
F Net Loan-Closing (C+D-E) 91.56 58.84
G Average Loan (C+F)/2 91.69 75.20
H Weighted Average Rate of Interest on Loan (in %) 7.741 7.596
I Interest on Loan (G*H) 0.06 5.71
Return on Equity
44. The Petitioner submitted that it is required to adjust grossed up rate of RoE at the end of
every financial year (for the tariff period 2014-19) based on actual tax paid as per Regulation
25(3) of the tariff Regulation 2014-19 period dated 21.02.2014 in the truing up petition for the
2014-19 tariff block. The Petitioner is liable to pay income tax at MAT rates. Regulation 25(3) of
the 2014 Tariff Regulations provides as follows:
“25. Tax on Return on Equity:

….
(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
2014-15 to 2018-19 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 of return on equity after truing up, shall be recovered or refunded
to beneficiaries or the long-term transmission customers/DICs as the case may be on year to year
basis.”
45. The Petitioner has submitted that it has been granted trued-up tariff of 2014-19 by the
Commission, vide order dated 18.4.2020 in Petition No. 247/TT/2019, order dated 27.4.2020 in
Petition No. 274/TT/2019, order dated 23.4.2020 in Petition No. 245/TT/2019 and order dated
16.4.2020 in Petition No. 307/TT/2019 for transmission assets, where the following effective tax
Page 23 of 50
rate based (for tariff block 2014-19) on notified MAT rates are considered for the purpose of
grossing-up of rate of return on equity (RoE).
Year Notified MAT rates (inclusive Effective tax Grossed up ROE

of surcharge & cess) (in %) [(Base Rate)/(1-t)]
(in %)
2014-15 20.961 20.961 19.611
2015-16 21.342 21.342 19.706
2016-17 21.342 21.342 19.706
2017-18 21.342 21.342 19.706
2018-19 21.549 21.549 19.758
46. The Petitioner has submitted that in line with the above regulation and the Commission’s
orders, the tariff for each year of the tariff period 2014-19 has been calculated considering the
above Effective Tax percentage to arrive at grossed up ROE. The Petitioner has further
submitted that it may be allowed to claim the differential tariff on account of the trued-up RoE
based on the effective tax rate calculated as above and Income-tax assessment/re-assessment
for 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 on receipt of the respective assessment
orders, directly from the beneficiaries, on year-to-year basis as provided in the regulation.
Income tax assessment for the year 2017-18 and 2018-19 has not yet been completed.
47. We have considered the submissions of the Petitioner. MAT rates considered in Petition
No. 274/TT/2019 are considered for the purpose of grossing up the rate of RoE for truing up of
the tariff of the 2014-19 tariff period in terms of the provisions of the 2014 Tariff Regulations,
which are as follows:
Notified MAT rates (inclusive Effective tax Grossed up ROE

YEAR of surcharge & cess) (in %) (Base Rate/1-t) (in %)
2014-15 20.961 20.961 19.610
2015-16 21.342 21.342 19.705
2016-17 21.342 21.342 19.705
2017-18 21.342 21.342 19.705
2018-19 21.549 21.549 19.758
Page 24 of 50
48. Based on the Rate of RoE arrived pre-tax, the revised trued-up RoE allowed for the
transmission assets for the 2017-19 period is as follows:
(₹ in lakh)
Asset-I
(pro-rata for 3
days)
A Opening Equity 3850.98 4018.78
B Addition due to ACE 167.80 562.29
C Closing Equity (A+B) 4018.78 4581.07
D Average Equity (A+C)/2 3934.88 4299.92
E Return on Equity (Base Rate) (in %) 15.50 15.50
F Tax Rate applicable (in %) 21.342 21.549
G Rate of Return on Equity (Pre-tax) (in %) 19.705 19.758
H Return on Equity (Pre-tax) (D*G) 6.37 849.56
(₹ in lakh)
Asset-I(a)
(pro-rata for
3 days)
A Opening Equity 167.48 167.48
B Addition due to ACE 0.00 0.00
C Closing Equity (A+B) 167.48 167.48
D Average Equity (A+C)/2 167.48 167.48
E Return on Equity (Base Rate) (in %) 15.50 15.50
F Tax Rate applicable (in %) 21.342 21.549
G Rate of Return on Equity (Pre-tax) (in %) 19.705 19.758
H Return on Equity (Pre-tax) (D*G) 0.27 33.09
Operation & Maintenance Expenses (O&M Expenses)
49. The details of the O&M Expenses claimed by the Petitioner and approved for the Asset-I
under Regulation 29(4)(a) of the 2014 Tariff Regulations for the 2017-19 period are as follows:
(₹ in lakh)
Asset-I
(pro-rata for
3 days)
Transmission Lines
2nd LILO D/C Portion of Gazuwaka/Simhadri-II 13.95 13.95
Vijayawada (NUNNA) at Vamagiri-I(AP)
LILO of both circuits of 400 kV D/C Gazuwaka/ Simhadri- 15.4 15.4
Vemagiri-I (AP)
Sub-station
Page 25 of 50
GIS Sub-station Bays 6 6
Norms
Transmission Lines
DC Twin / Triple Conductor 0.78 0.806
Multi Ckt Twin/ Triple 1.368 1.413
Sub-station
GIS Substation Bays 56.84 58.73
O&M Expenses
Transmission Lines 0.26 33.00
Substation 2.80 352.38
50. The Petitioner has not claimed any O&M Expenses for the Asset-I(a) for 2017-19 tariff
period.
Interest on Working Capital (IWC)
51. The Petitioner has claimed IWC as per Regulation 28(1)(c) of the 2014 Tariff Regulations.
The trued-up IWC allowed for Asset-I and Asset-I(a) for 2017-19 period are as follows:
(₹ in lakh)
Asset-I
(pro-rata for 3
days)
Working Capital for O&M Expenses 0.26 32.12
(O&M expenses for one month)
Working Capital for Maintenance Spares 0.46 57.81
(15% of O&M expenses)
Working Capital for Receivables 3.56 465.88
(Equivalent to two months of annual
transmission charges)
Total Working Capital 4.27 555.81
Rate of Interest for working capital (in %) 12.60 12.60
(₹ in lakh)
Asset-I(a)
(pro-rata
for 3 days)
Working Capital for O&M Expenses 0.00 0.00
(O&M Expenses for one month)
Working Capital for Maintenance Spares 0.00 0.00
(15% of O&M Expenses)
Page 26 of 50
Asset-I(a)
Working Capital for Receivables 0.10 12.18
(Equivalent to two months of annual
Total Working Capital 0.10 12.18
Rate of Interest for working capital (in %) 12.60 12.60
Approved Annual Fixed Charges for 2014-19 Tariff Period
52. Accordingly, annual transmission charges approved for Asset-I and Asset-I(a) after truing
up for 2017-19 period are as follows:
(₹ in lakh)
Asset-I
(pro-rata
for 3 days)
Total 21.34 2795.30
(₹ in lakh)
Asset-I(a)
(pro-rata for 3
days)
Total 0.61 73.05
53. Summary of comparison of AFC allowed in order dated 17.5.2021 in Petition No.
59/TT/2020, AFC claimed in the instant petition and Revised AFC approved vide this order for
Asset-I and Asset-I(a) for 2017-18 and 2018-19 is as follows:
Page 27 of 50
(₹ in lakh)
Asset-I 2017-18 2018-19
Allowed earlier vide order dated 17.5.2021 in Petition No. 21.55 2819.43
59/TT/2020
As claimed by the Petitioner 21.39 2801.20
Allowed after Truing-up in this Petition 21.34 2795.30
(₹ in lakh)
Asset-I (a) 2017-18 2018-19
Allowed earlier vide order dated 17.5.2021 in Petition No. 0.00 0.00
59/TT/2020
As claimed by the Petitioner 0.55 73.04
Allowed after Truing-up in this Petition 0.61 73.05
54. The expenditure incurred towards shifting, dismantling and transportation of Asset-I(a) is
allowed to be recovered directly from the beneficiaries covered under the instant petition as a
one-time exercise.
DETERMINATION OF ANNUAL FIXED CHARGES FOR THE 2019-24 TARIFF PERIOD
55. The Petitioner has claimed the following transmission charges for the transmission asset
for the 2019-24 tariff period:
(₹ in lakh)
Asset-I
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Depreciation 824.95 833.60 843.69 884.22 921.49
Interest on Loan 732.78 676.43 621.38 596.12 563.98
Return on Equity 864.63 873.87 884.63 927.89 967.66
O&M Expenses 173.89 179.90 186.12 192.57 199.21
Interest on Working Capital 44.01 43.80 43.55 44.72 45.57
Total AFC 2640.26 2607.60 2579.37 2645.52 2697.91
(₹ in lakh)
Asset-I (a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Depreciation 32.72 5.79 5.79 5.79 5.79
Interest on Loan 3.79 2.13 1.67 1.12 0.57
Return on Equity 31.42 31.42 31.42 31.42 31.42
O&M Expenses 0.00 0.00 0.00 0.00 0.00
Total AFC 68.95 39.93 39.47 38.91 38.35
Page 28 of 50
56. The Petitioner has claimed the following Interest on Working Capital for the transmission
assets:
(₹ in lakh)
Asset-I
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
O & M Expenses 14.49 14.99 15.51 16.05 16.60
Maintenance Spares 26.08 26.99 27.92 28.89 29.88
Receivables 324.62 321.48 318.00 326.16 331.71
Total Working Capital 365.19 363.46 361.43 371.10 378.19
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
(₹ in lakh)
Asset-I(a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
O & M Expenses 0.00 0.00 0.00 0.00 0.00
Maintenance Spares 0.00 0.00 0.00 0.00 0.00
Receivables 8.48 4.92 4.87 4.80 4.72
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
Capital Cost
57. Regulation 19(3) of the 2019 Tariff Regulations provides as follows:
“19. Capital Cost:

…..
(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 renovation and modernisation as admitted by this
Commission in accordance with these regulations;
(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 upto 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.”
Page 29 of 50
58. The capital cost has been dealt with 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 asset are clubbed
together, and the capital cost has been considered as capital cost for the transmission asset as
on 1.4.2019, is as follows:
(₹ in lakh)
Particulars Asset-I Asset-I (a)
Transmission Line 8957.40 0.00
Sub Station 6037.09 619.62
PLCC 139.42 0.00
IT Equipment (Incl. Software) 136.30 0.00
Total 15270.22 619.62
Additional Capital Expenditure
59. Regulation 24 of the Tariff Regulations, 2019 provides 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.”
60. The Petitioner has submitted the Additional Capital Expenditure for Asset-I and Asset-I(a)
for the 2019-24 tariff period as follows:
Page 30 of 50
(₹ in lakh)
FR Expenditure Projected Add Cap 2019-24 Cost as on
Assets Apportioned as on (as per auditor’s certificate) 31.3.2024
cost 31.3.2019 2019-20 2020-21 2021-22 2022-23 2023-24
Asset-I 20788.00 15310.20 69.62 258.19 123.80 1411.75 - 17173.56
Asset-I (a) - 619.62 - - - - - 619.62
61. It is observed that the Petitioner has revised the capitalization of Asset-I for the 2019-24
period from its claim as per Petition No. 59/TT/2020, wherein the Petitioner had claimed
₹1725.79 lakh till 2019-20 against which the Commission had approved ₹1654.36 lakh excluding
the excess initial spares of ₹71.34 lakh. The Petitioner has now claimed capitalization post cut-
off date of the Asset I (31.3.2021) till 2022-23. Further, it is observed that the total additional
capitalisation proposed has also increased from the value proposed in Petition No. 59/TT/2020.
Hence, the Commission has considered the additional capitalization proposed by the Petitioner
till the cut-off date as per Regulation 24(1)(a) and Regulation 24(1)(b) of the 2019 Tariff
Regulations towards balance and retention payment and has not considered the additional
capitalization post cut-off date due to non-submission of justification of ACE post cut-off date as
proposed by the Petitioner. The Petitioner is given liberty to justify the same at the time of truing
up.
(₹ in lakh)
Capital cost ACE allowed for the Period 2019-24 Estimated
allowed on 2019-20 2020-21 2021-22 2022-23 2023-24 capital cost up
1.4.2019 to 31.3.2024
15270.22 69.62 258.19 - - - 15598.03
62. The capital cost of the transmission Asset-I(a) considered for the 2019-24 tariff period,
subject to truing-up, is as follows:
(₹ in lakh)
capital cost allowed ACE allowed for Estimated capital
on 1.4.2019 the Period 2019-24 cost up to 31.3.2024
619.62 0.00 619.62
Page 31 of 50
Debt Equity Ratio
63. 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.”
64. The details of debt-equity considered for the purpose of computation of transmission tariff
for the 2019-24 tariff period is as follows:
Page 32 of 50
Capital cost
Capital cost
as on
Asset-1 as on COD (in %) (in %)
31.3.2024
(₹ in lakh)
(₹ in lakh)
Debt 10689.15 70.00 10918.62 70.00
Equity 4581.07 30.00 4679.41 30.00
Total 15270.22 100.00 15598.03 100.00
Capital cost
Capital cost
as on
Asset-1(a) as on COD (in %) (in %)
31.3.2024
(₹ in lakh)
(₹ in lakh)
Debt 452.14 72.97 452.14 72.97
Equity 167.48 27.03 167.48 27.03
Total 619.62 100.00 619.62 100.00
Depreciation
“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 the asset:
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 generating station
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 of lower 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.
Page 33 of 50
(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 be excluded from the capital cost while
computing depreciable value of the asset.
(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 upto 31.3.2019 from
the gross depreciable value of the assets.
(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 de-capitalizedasset 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.”
66. The Commission has considered the submissions of the Petitioner. WAROD has been
worked out and placed as Annexure-II after considering the depreciation rates of IT and non-IT
assets as prescribed in the 2019 Tariff Regulations. The lapsed useful life of the transmission
asset is considered as detailed in the truing-up for the 2014-19 tariff period, and the remaining
depreciable value is spread across the remaining useful life of the asset (13 years) from 2020-
Page 34 of 50
21 for Asset I(a). Depreciation allowed for the transmission asset for the 2019-24 tariff period is
as follows:
(₹ in lakh)
Asset-I
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
A Opening Gross Block 15270.22 15339.84 15598.03 15598.03 15598.03
Addition during the year 2019-24 69.62 258.19 0.00 0.00 0.00
B due to projected ACE
C Closing Gross Block (A+B) 15339.84 15598.03 15598.03 15598.03 15598.03
D Average Gross Block (A+C)/2 15305.03 15468.93 15598.03 15598.03 15598.03
Average Gross Block (90% 15168.72 15332.63 15461.72 15461.72 15461.72
E depreciable assets)
F depreciable assets)
Depreciable value (excluding IT 13651.85 13799.37 13915.55 13915.55 13915.55
G equipment and software) (E*90%)
Depreciable value of IT equipment 136.30 136.30 136.30 136.30 136.30
H and software (F*100%)
I Total Depreciable Value (G+H) 13788.15 13935.67 14051.85 14051.85 14051.85
Weighted average rate of 5.38 5.38 5.37 5.37 5.37
J Depreciation (WAROD) (in %)
Lapsed useful life at the beginning 1 2 3 4 5
K of the year (Year)
Balance useful life at the beginning 24 23 22 21 20
L of the year (Year)
Depreciation during the year 822.82 831.47 838.29 838.29 838.29
M (D*J)
Cumulative Depreciation at the end 1586.69 2418.16 3256.45 4094.73 4933.03
N of the year
Remaining Aggregate Depreciable 12201.46 11517.50 10795.40 9957.11 9118.82
O Value at the end of the year
(₹ in lakh)
Asset-I(a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
A Opening Gross Block 619.62 619.62 619.62 619.62 619.62
Addition during the year 2019-24 due 0.00 0.00 0.00 0.00 0.00
B to projected ACE
C Closing Gross Block (A+B) 619.62 619.62 619.62 619.62 619.62
D Average Gross Block (A+C)/2 619.62 619.62 619.62 619.62 619.62
E depreciable assets)
F depreciable assets)
Depreciable value (excluding IT 557.66 557.66 557.66 557.66 557.66
G equipment and software) (E*90%)
Page 35 of 50
Asset-I(a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Depreciable value of IT equipment 0.00 0.00 0.00 0.00 0.00
H and software (F*100%)
I Total Depreciable Value (G+H) 557.66 557.66 557.66 557.66 557.66
Weighted average rate of 5.28 1.65 1.65 1.65 1.65
J Depreciation (WAROD) (in %)
Lapsed useful life at the beginning of 11 12 13 14 15
K the year (Year)
Balance useful life at the beginning of 14 13 12 11 10
L the year (Year)
M Depreciation during the year (D*J) 32.72 10.24 10.24 10.24 10.24
Cumulative Depreciation at the end of 424.50 434.74 444.99 455.23 465.47
N the year
Remaining Aggregate Depreciable 133.16 122.91 112.67 102.43 92.19
O Value at the end of the year
Interest on Loan (IoL)
“32. Interest on loan capital: (1) The loans arrived at in the manner indicated in Regulation 18 of
these regulations shall be considered as gross normative loan for calculation of interest on loan.
(2) The normative loan outstanding as on 1.4.2019 shall be worked out by deducting the
cumulative repayment as admitted by the Commission up to 31.3.2019 from the gross normative
loan.
(3) The repayment for each of the year of the tariff period 2019-24 shall be deemed to be equal
to the depreciation allowed for the corresponding year/period. In case of decapitalization 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”.
Page 36 of 50
68. The weighted average rate of interest as proposed by the Petitioner is considered for
Asset-I, and the weighted average rate of interest of IoL as approved in the order dated
11.4.2022 in Petition No. 115/TT/2020 is considered for Asset-I (a).
69. The Petitioner has prayed that the change in the interest rate due to the floating rate of
interest applicable, if any, during the 2019-24 tariff period will be adjusted. Accordingly, the
floating rate of interest, if any, shall be considered at the time of true-up.
70. IoL has been worked out in accordance with Regulation 32 of the 2019 Tariff Regulations.
IoL allowed for the transmission assets for the 2019-24 tariff period is as follows:
(₹ in lakh)
Asset-I
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
A Gross Normative Loan 10689.15 10737.89 10918.62 10918.62 10918.62
Cumulative Repayments up to 763.87 1586.69 2418.16 3256.45 4094.74
B Previous Year
C Net Loan-Opening (A-B) 9925.28 9151.19 8500.45 7662.17 6823.88
D Addition due to ACE 48.73 180.73 0.00 0.00 0.00
E Repayment during the year 822.82 831.47 838.29 838.29 838.29
F Net Loan-Closing (C+D-E) 9151.19 8500.45 7662.17 6823.88 5985.59
G Average Loan (C+F)/2 9538.24 8825.82 8081.31 7243.02 6404.73
Weighted Average Rate of 7.66 7.64 7.63 7.63 7.61
H Interest on Loan (in %)
I Interest on Loan (G*H) 730.86 674.68 616.62 552.33 487.57
(₹ in lakh)
Asset-I(a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
A Gross Normative Loan 452.14 452.14 452.14 452.14 452.14
Cumulative Repayments up to Previous 393.29 426.01 436.25 446.50 452.14
B Year
C Net Loan-Opening (A-B) 58.84 26.13 15.88 5.64 0.00
D Addition due to ACE 0.00 0.00 0.00 0.00 0.00
E Repayment during the year 32.72 10.24 10.24 5.64 0.00
F Net Loan-Closing (C+D-E) 26.13 15.88 5.64 0.00 0.00
G Average Loan (C+F)/2 42.48 21.00 10.76 2.82 0.00
Weighted Average Rate of Interest on 8.88 9.11 9.47 9.47 9.47
H Loan (in %)
I Interest on Loan (G*H) 3.77 1.91 1.02 0.27 0.00
Page 37 of 50
Return on Equity (RoE)
71. Regulation 30 and Regulation 31 of the 2019 Tariff Regulations provide as follows:
“30. Return on Equity: (1) Return on equity shall be computed in rupee terms, on the equity base
determined in accordance with Regulation 18 of these regulations.
(2) Return on equity shall be computed at the base rate of 15.50% for thermal generating station,
transmission system including communication system and 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 due to Change in Law, 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 ceiling 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.
Page 38 of 50
(2) Rate of return on equity shall be rounded off to three decimal places and shall be computed
as per the formula given below:
Rate of pre-tax return on equity = Base rate / (1-t)
Where “t” is the effective tax rate in accordance with clause (1) of this Regulation and shall be
calculated at the beginning of every financial year based on the estimated profit and tax to be
paid estimated in line with the provisions of the relevant Finance Act applicable for that financial
year to the company on pro-rata basis by excluding the income of non-generation or non-
transmission business, as the case may be, and the corresponding tax thereon. In case of
generating company or transmission licensee paying Minimum Alternate Tax (MAT), “t” shall be
considered as MAT rate including surcharge and cess.
Illustration-
(i) In case of a generating company or a transmission licensee paying Minimum Alternate Tax
(MAT) @ 21.55% including surcharge and cess:
Rate of return on equity = 15.50/(1-0.2155) = 19.758%
(ii) In case of a generating company or a transmission licensee paying normal corporate tax
including surcharge and cess:
(a) Estimated Gross Income from generation or transmission business for FY 2019-20 is Rs 1,000
crore;
(b) Estimated Advance Tax for the year on above is Rs 240 crore;
(c) Effective Tax Rate for the year 2019-20 = Rs 240 Crore/Rs 1000 Crore = 24%;
(d) Rate of return on equity = 15.50/ (1-0.24) = 20.395%.
(3) The generating company or the transmission licensee, as the case may be, shall true up the
grossed up rate of return on equity at the end of every financial year based on actual tax paid
together with any additional tax demand including interest thereon, duly adjusted for any refund
of tax including interest received from the income tax authorities pertaining to the tariff period
2019-24 on actual gross income of any financial year. However, penalty, if any, arising on account
of delay in deposit or short deposit of tax amount shall not be claimed by the generating company
or the transmission licensee, as the case may be. Any under-recovery or over-recovery of grossed
up rate on return on equity after truing up, shall be recovered or refunded to beneficiaries or the
long term customers, as the case may be, on year to year basis.”
72. The Petitioner has submitted that the MAT rate applies to it. As per Regulation 31(3) of
the 2019 Tariff Regulations, the grossed-up rate of RoE at the end of every financial year shall
be trued up 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 IT authorities
pertaining to the tariff period 2019-24 on actual gross income of any financial year. The MAT
rate applicable in the year 2019-20 has been considered for the purpose of RoE, which shall be
trued up with the actual tax rate in accordance with Regulation 31(3) of the 2019 Tariff
Regulations. RoE allowed with respect to the transmission assets for the 2019-24 tariff period is
as follows:
Page 39 of 50
(₹ in lakh)
Asset-I
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
A Opening Equity 4581.07 4601.95 4679.41 4679.41 4679.41
B Addition due to ACE 20.89 77.46 0.00 0.00 0.00
C Closing Equity (A+B) 4601.95 4679.41 4679.41 4679.41 4679.41
D Average Equity (A+C)/2 4591.51 4640.68 4679.41 4679.41 4679.41
E Return on Equity (Base Rate) (in %) 15.50 15.50 15.50 15.50 15.50
F Tax Rate applicable (in %) 17.472 17.472 17.472 17.472 17.472
G Rate of Return on Equity (Pre-tax) (in %) 18.782 18.782 18.782 18.782 18.782
H Return on Equity (Pre-tax) (D*G) 862.35 871.59 878.86 878.86 878.86
(₹ in lakh)
Asset-I(a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
A Opening Equity 167.48 167.48 167.48 167.48 167.48
B Addition due to ACE 0.00 0.00 0.00 0.00 0.00
C Closing Equity (A+B) 167.48 167.48 167.48 167.48 167.48
D Average Equity (A+C)/2 167.48 167.48 167.48 167.48 167.48
E Return on Equity (Base Rate) (in %) 15.50 15.50 15.50 15.50 15.50
F Tax Rate applicable (in %) 17.472 17.472 17.472 17.472 17.472
G Rate of Return on Equity (Pre-tax) (in %) 18.782 18.782 18.782 18.782 18.782
H Return on Equity (Pre-tax) (D*G) 31.46 31.46 31.46 31.46 31.46
Operation & Maintenance Expenses (O&M Expenses)
73. The Petitioner has not claimed any O&M Expenses for Asset-I(a). The Petitioner has
claimed the following O&M Expenses for the Asset-I:
(₹ in lakh)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Transmission Lines
2nd LILO D/C Portion of Gazuwaka/Simhadri-II 13.95 13.95 13.95 13.95 13.95
Vijayawada (NUNNA) at Vamagiri-I(AP)
LILO of both circuits of 400 kV D/C Gazuwaka/ 15.4 15.4 15.4 15.4 15.4
Simhadri-Vemagiri-I (AP)
Sub-station
GIS Sub-station Bays 6 6 6 6 6
Communication System 139.46 139.46 139.46 139.46 139.46
Norms
Transmission Lines
DC Twin / Triple Conductor 0.881 0.912 0.944 0.977 1.011
Multi Ckt Twin/ Triple 1.544 1.598 1.654 1.713 1.773
Sub-station
GIS Sub-station Bays 22.505 23.296 24.115 24.962 25.837
Communication System (in %) 2 2 2 2 2
O&M Expenses
Page 40 of 50
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Transmission Lines 36.07 37.33 38.64 40.01 41.41
Sub-station 135.03 139.78 144.69 149.77 155.02
Communication System 2.79 2.79 2.79 2.79 2.79
O&M Expenses 173.89 179.90 186.12 192.57 199.22
74. Regulation 35(3)(a) of the 2019 Tariff Regulations provide 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 (₹ 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 (₹ 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 (₹ Lakh per km)
Single Circuit (Bundled Conductor
0.881 0.912 0.944 0.977 1.011
with six or more sub-conductors)
Single Circuit (Bundled conductor
0.755 0.781 0.809 0.837 0.867
with four sub-conductors)
Single Circuit (Twin & Triple
0.503 0.521 0.539 0.558 0.578
Conductor)
Single Circuit (Single Conductor) 0.252 0.26 0.27 0.279 0.289
Double Circuit (Bundled conductor
1.322 1.368 1.416 1.466 1.517
with four or more sub-conductors)
Double Circuit (Twin & Triple
0.881 0.912 0.944 0.977 1.011
Conductor)
Double Circuit (Single Conductor) 0.377 0.391 0.404 0.419 0.433
Multi Circuit (Bundled Conductor
2.319 2.401 2.485 2.572 2.662
with four or more sub-conductor)
Multi Circuit (Twin & Triple
1.544 1.598 1.654 1.713 1.773
Conductor)
Norms for HVDC stations
HVDC Back-to-Back stations (Rs
Lakh per 500 MW) (Except 834 864 894 925 958
Gazuwaka BTB)
Gazuwaka HVDC Back-to-Back
1,666 1,725 1,785 1,848 1,913
station (₹ Lakh per 500 MW)
500 kV Rihand-Dadri HVDC bipole
2,252 2,331 2,413 2,498 2,586
scheme (Rs Lakh) (1500 MW)
±500 kV Talcher- Kolar HVDC
bipole scheme (Rs Lakh) (2000 2,468 2,555 2,645 2,738 2,834
MW)
Page 41 of 50
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
±500 kV Bhiwadi-Balia HVDC
MW)
±800 kV, Bishwanath-Agra HVDC
MW)
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.”
75. The O&M Expenses approved for Asset-I for the 2019-24 tariff period as per Regulation
35(3)(a) of the 2019 Tariff Regulations is as follows:
(₹ in lakh)
O&M Expenses 2019-20 2021-22 2021-22 2022-23 2023-24
Asset-I 173.89 179.90 186.12 192.57 199.22
Page 42 of 50
Interest on Working Capital (IWC)
76. Regulation 34(1)(c), Regulation 34(3), Regulation 34(4) and Regulation 3(7) of the 2019
Tariff Regulations specify as follows:
“34. Interest on Working Capital: (1) The working capital shall cover: ……
(c) For Hydro Generating Station (including Pumped Storage Hydro Generating Station) and
Transmission System:
(i) Receivables equivalent to 45 days of annual fixed cost;
(ii) Maintenance spares @ 15% of operation and maintenance expenses including security
expenses; and
(iii) Operation and maintenance expenses, including security expenses for one month.
(3) Rate of interest on working capital shall be on normative basis and shall be considered as the
bank rate as on 1.4.2019 or as on 1st April of the year during the tariff period 2019- 24 in which
the generating station or a unit thereof or the transmission system including communication
system or element thereof, as the case may be, is declared under commercial operation,
whichever is later:
Provided that in case of truing-up, the rate of interest on working capital shall be considered at
bank rate as on 1st April of each of the financial year during the tariff period 2019-24.
(4) Interest on working capital shall be payable on normative basis notwithstanding that the
generating company or the transmission licensee has not taken loan for working capital from any
outside agency.”
“3. Definitions. - 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;”
77. The Petitioner has submitted that it has computed IWC for the 2019-24 period considering
the SBI Base Rate plus 350 basis points as on 1.4.2019. The Petitioner has considered the rate
of IWC as 12.05% for the complete tariff period. IWC is worked out in accordance with Regulation
34 of the 2019 Tariff Regulations. The rate of IWC considered is 12.05% (SBI 1year MCLR
applicable as on 1.4.2019 of 8.55% plus 350 basis points) for 2019-20, 11.25% (SBI 1-year
MCLR applicable as on 1.4.2020 of 7.75% plus 350 basis points) for 2020-21 and 10.50% (SBI
1-year MCLR applicable as on 1.4.2021 of 7.00% plus 350 basis points) for 2021-24. The
components of the working capital and interest allowed thereon are as follows:
Page 43 of 50
(₹ in lakh)
Asset-I
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Working Capital for O&M Expenses (O&M 14.49 14.99 15.51 16.05 16.60
Expenses for one month)
Working Capital for Maintenance Spares (15% 26.08 26.98 27.92 28.89 29.88
of O&M Expenses)
Working Capital for Receivables (Equivalent to 323.83 320.35 315.31 308.11 300.04
45 days of annual fixed cost /annual
Rate of Interest for working capital (in %) 12.05 11.25 10.50 10.50 10.50
Interest on working capital 43.91 40.76 37.67 37.07 36.39
(₹ in lakh)
Asset-I(a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Working Capital for O&M Expenses (O&M 0.00 0.00 0.00 0.00 0.00
Expenses for one month)
Working Capital for Maintenance Spares (15% 0.00 0.00 0.00 0.00 0.00
of O&M Expenses)
Working Capital for Receivables (Equivalent to 8.48 5.45 5.34 5.24 5.19
45 days of annual fixed cost /annual
Rate of Interest for working capital (in %) 12.05 11.25 10.50 10.50 10.50
Interest on working capital 1.02 0.61 0.56 0.55 0.55
Annual Fixed Charges for the 2019-24 Tariff Period
78. The transmission charges allowed for the 2019-24 tariff period is as follows:
(₹ in lakh)
Asset-I
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Depreciation 822.82 831.47 838.29 838.29 838.29
Interest on Loan 730.86 674.68 616.62 552.33 487.57
Return on Equity 862.35 871.59 878.86 878.86 878.86
O&M Expenses 173.89 179.90 186.12 192.57 199.22
Total 2633.83 2598.40 2557.56 2499.12 2440.33
(₹ in lakh)
Asset-I (a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Depreciation 32.72 10.24 10.24 10.24 10.24
Interest on Loan 3.77 1.91 1.02 0.27 0.00
Return on Equity 31.46 31.46 31.46 31.46 31.46
O&M Expenses 0.00 0.00 0.00 0.00 0.00
Page 44 of 50
Asset-I (a)
Particulars 2019-20 2020-21 2021-22 2022-23 2023-24
Total 68.97 44.22 43.28 42.52 42.25
79. Summary of AFC allowed as per order dated 17.5.2021 in Petition No. 59/TT/2020, AFC
claimed in the instant petition, and the revised AFC approved vide this order for Asset-I and
Asset-1(a) for the 2019-24 tariff period is as follows:
(₹ in lakh)
Particulars for Asset-I 2019-20 2020-21 2021-22 2022-23 2023-24
Allowed earlier vide order dated 17.5.2021 in 2782.57 2852.25 2788.11 2724.02 2658.73
As claimed by the Petitioner 2640.26 2607.60 2579.37 2645.52 2697.91
Allowed after truing-up in this petition 2633.83 2598.40 2557.56 2499.12 2440.33
(₹ in lakh)
Particulars for Asset-I(a) 2019-20 2020-21 2021-22 2022-23 2023-24
Allowed earlier vide order dated 17.5.2021 in 0.00 0.00 0.00 0.00 0.00
As claimed by the Petitioner 68.95 39.93 39.47 38.91 38.35
Allowed after truing-up in this petition 68.97 44.22 43.28 42.52 42.25
Filing Fee and Publication Expenses
80. The Petitioner has sought reimbursement of the fee paid by it for filing the Petition and
publication expenses. The Petitioner shall be entitled to reimbursement of the filing fees and
publication expenses in connection with the present petition directly from the beneficiaries on a
pro-rata basis in accordance with Regulation 70(1) of the 2019 Tariff Regulations.
License Fee and RLDC Fees and Charges
81. The Petitioner has sought recovery of licensee fees and RLDC fees and charges from the
beneficiaries in terms of Regulation 70(3) and 70(4) of the 2019 Tariff Regulations. The Petitioner
shall be entitled to reimbursement of licence fee in accordance with Regulation 70(4) of the 2019
Tariff Regulations for the 2019-24 tariff period. The Petitioner shall also be entitled for recovery
of RLDC fees and charges in accordance with Regulations 70(3) of the 2019 Tariff Regulations
Page 45 of 50
for the 2019-24 tariff period.
Goods and Services Tax
82. The Petitioner has submitted that if GST is levied at any rate and at any point of time in
future on charges of transmission of electricity, the same shall be borne and additionally paid by
the Respondent(s) to the Petitioner and the same shall be charged and billed separately by the
Petitioner. Further additional taxes, if any, are to be paid by the Petitioner on account of demand
from Government/Statutory Authorities. The same may be allowed to be recovered from the
beneficiaries.
83. We have considered the submissions of the Petitioner. Since GST is not levied on
transmission service at present, the Petitioner’s prayer is premature.
Security Expenses
84. The Petitioner has submitted that security expenses in respect of transmission assets are
not claimed in the instant Petition, and it would file a separate petition for claiming the overall
security expenses and consequential IWC.
85. We have considered the above submissions of Petitioner. The Petitioner has claimed
consolidated security expenses for all the transmission assets owned by it on a projected basis
for the 2019-24 tariff period based on actual security expenses incurred in 2018-19 in Petition
No. 260/MP/2020. The said petition has already been disposed of by the Commission vide order
dated 3.8.2021. Therefore, 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.
Page 46 of 50
Capital Spares
86. The Petitioner has sought reimbursement of capital spares at the end of the 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
87. With effect from 1.7.2011, the sharing of transmission charges for inter-State transmission
systems was governed by the provisions of the 2010 Sharing Regulations. However, with effect
from 1.11.2020, the 2010 Sharing Regulations has been repealed, and the sharing of
transmission charges is governed by the provisions of the 2020 Sharing Regulations.
Accordingly, the transmission charges approved in this order for the transmission assets shall
be recovered in accordance with the applicable Sharing Regulations as per Regulation 43 of the
2014 Tariff Regulations and Regulation 57(2) of the 2019 Tariff Regulations.
88. To summarise:
(a) The revised trued-up AFC allowed in respect of the transmission assets for the 2017-19
period in this order are as follows:
(₹ in lakh)
AFC 2017-18 2018-19
(pro-rata for 3 days)
Asset-I 21.34 2795.30
Asset-I(a) 0.61 73.05
(b) AFC allowed in respect of the transmission asset for the 2019-24 tariff period in this order
are as follows:
(₹ in lakh)
AFC 2019-20 2020-21 2021-22 2022-23 2023-24
Asset-I 2633.83 2598.40 2557.56 2499.12 2440.33
Asset-I(a) 68.97 44.22 43.28 42.52 42.25
Page 47 of 50
89. The Annexure to this order forms part of the order.
90. This order disposes of Petition No. 25/TT/2023 in terms of the above findings and
discussions.
sd/- sd/- sd/-

(P. K. Singh) (Arun Goyal) (Jishnu Barua)
Member Member Chairperson
Page 48 of 50
Order in Petition No. 25/TT/2023 CERC Website S. No. 146/2024
Annexure-I
Asset-I
(₹ in lakh)
Capital Admitted ACE Admitted Depreciation Rate Annual
Expenditure Capital Cost Capital Cost as (in %) Depreciation
as on COD 2017-18 2018-19 on 31.3.2024 2017-18 2018-19
Building 0.00 0.00 0.00 0.00 3.34 0.00 0.00
Transmission Line 6692.68 559.34 1705.38 8957.40 5.28 368.14 427.93
Substation 5886.46 0.00 150.64 6037.10 5.28 310.80 314.78
PLCC 124.46 0.00 14.96 139.42 6.33 7.88 8.35
IT Equipment 132.99 0.00 3.31 136.30 5.28 7.02 7.11
Total 12836.59 559.34 1874.29 15270.22 693.85 758.17
Avg. Gross Block 13116.26 14333.07
WAROD (in %) 5.29 5.29
Asset-I (a)
(₹ in lakh)
Admitted ACE Admitted Depreciation Rate Annual Depreciation
Capital Capital Cost 2017-18 2018-19 Capital Cost as (in %) 2017-18 2018-19
Expenditure as on COD on 31-03-2024
Building 0.00 0.00 0.00 0.00 3.34 0.00 0.00
Substation 619.62 0.00 0.00 619.62 5.28 32.72 32.72
PLCC 0.00 0.00 0.00 0.00 6.33 0.00 0.00
IT Equipment 0.00 0.00 0.00 0.00 5.28 0.00 0.00
Total 619.62 0.00 0.00 619.62 32.72 32.72
Avg. Gross Block 619.62 619.62
WAROD (in %) 5.28 5.28
Page 49 of 50
Annexure-II
Asset-I
Capital Admitted Projected ACE Admitted Deprecia Annual Depreciation
Capital Capital
Expenditure 2019- 2020-21 2021-22 2022-23 2023-24 tion Rate 2019-20 2020-21 2021-22 2022-23 2023-24
Cost as 20 Cost as on
on COD 31.3.2024 (in %)
Building 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.34 0.00 0.00 0.00 0.00 0.00
Transmission 8957.40 0.00 6.67 0.00 0.00 0.00 8964.07 472.95 473.13 473.30 473.30 473.30
Line 5.28
Substation 6037.10 69.62 251.52 0.00 0.00 0.00 6358.24 5.28 320.60 329.07 335.71 335.71 335.71
PLCC 139.42 0.00 0.00 0.00 0.00 0.00 139.42 6.33 8.83 8.83 8.83 8.83 8.83
IT Equipment 136.30 0.00 0.00 0.00 0.00 0.00 136.30 15 20.45 20.45 20.45 20.45 20.45
Total 15270.22 69.62 258.19 0.00 0.00 0.00 15598.03 822.82 831.47 838.29 838.29 838.29
Avg. 15305.03 15468.93 15598.03 15598.03 15598.03
Gross
Block
WAROD 5.38 5.38 5.37 5.37 5.37
(in %)
Asset-I (a)
Capital Admitted Projected ACE Admitted Depreci Annual Depreciation
Capital Capital
Expenditure 2019-20 2020-21 2021-22 2022-23 2023-24 ation 2019-20 2020-21 2021-22 2022-23 2023-24
Cost as Cost as
on COD on Rate
31.3.2024 (in %)
Building 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.34 0.00
Transmission 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.28 0.00
Line Spreading over
Substation 619.62 0.00 0.00 0.00 0.00 0.00 619.62 5.28 32.72
PLCC 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.33 0.00
IT Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15.00 0.00
Total 619.62 0.00 0.00 0.00 0.00 0.00 619.62 32.72 10.24 10.24 10.24 10.24
Avg. 619.62 619.62 619.62 619.62 619.62
Gross
Block
WAROD 5.28 1.65 1.65 1.65 1.65
(in %)
Page 50 of 50

25 TT 2023

Uploaded by

Copyright:

Available Formats

25 TT 2023

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

25 TT 2023

Uploaded by

Copyright:

Available Formats

CENTRAL ELECTRICITY REGULATORY COMMISSION

Petition No. 25/TT/2023

Shri Jishnu Barua, Chairperson

Date of Order: 14.03.2024

In the matter of:

Approval under Regulation 86 of the Central Electricity Regulatory Commission (Conduct of

And in the matter of:

Power Grid Corporation of India Limited,

1. Karnataka Power Transmission Corporation Limited (KPTCL),

2. Transmission Corporation of Andhra Pradesh Limited (APTRANSCO),

3. Kerala State Electricity Board (KSEB),

4. Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO),

7. Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL),

8. Central Power Distribution Company of Andhra Pradesh limited (APCPDCL),

9. Northern Power Distribution Company of Andhra Pradesh Limited (APNPDCL),

10. Bangalore Electricity Supply Company Limited (BESCOM),

11. Gulbarga Electricity Supply Company Limited (GESCOM),

12. Hubli Electricity Supply Company Limited (HESCOM),

13. MESCOM Corporate Office,

14. Chamundeswari Electricity Supply Corporation Limited (CESC),

15. Electricity Department,

16. Transmission Corporation of Telangana Limited,

For Petitioner : Shri Zafrul Hasan, PGCIL

For Respondents : Shri S. Vallinayagam, Advocate, TANGEDCO

of Constraints in 400 kV Bays Extensions at 400 kV Vemagiri Sub-station” in Southern Region

(hereinafter referred to as the “transmission assets”).

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

accorded by the Board of Directors of the Petitioner’s company on 27.1.2016, vide

Memorandum Ref. No.: C/CP/Removal of Constraints in Vemagiri Sub-station

(based on August, 2015 price level).

b. The scope of the work as per IA is as follows:

• Both circuits of one LILO D/C portion of Simhadri-Vijaywada 400 kV Line at

kV Line at Vemagiri-I (AP) shall be looped in at Vemagiri-II (PO). There shall

(AP) shall be used to terminate the Kota Line.

• 400 kV Vemagiri-II (PG) GIS Sub-station Extension.

i. Line Bays: 06 numbers

ii. Shifting of 2 numbers of 63 MVAr reactors from Gazuwaka to Vemagiri-

II (PG) for utilization on Simhadri-II-Vemagiri-II (PG) 400 kV D/C Line.

c. The Petitioner in Petition No.59/TT/2020 claimed ₹28.77 lakh as the cost of

original transmission project, i.e. “Augmentation of capacity of Gazuwaka HVDC

referred to as “Gazuwaka Project”). However, the Commission vide order dated

of Constraints in 400 kV Bays Extensions at 400 kV Vemagiri Sub-station” in the

16. In a similar case, the Commission in order dated 28.9.2017 in Petition

the directions of the Commission in an order dated 17.5.2021 in Petition No.

details of the assets are as follows:

asset was put into commercial operation on 29.3.2018.

determined vide order dated 19.9.2018 in Petition No. 220/TT/2017.

Petition No. 59/TT/2020.

2014-19 tariff period, details of which are as follows:

I and Asset-I(a) in the instant petition are as follows:

26.9.2023 have filed its rejoinder to the reply of TANGEDCO.

rejoinder, vide affidavit dated 26.9.2023 in the matter.

and perused the material on record, we proceed to dispose of the petition.

REVISION OF TRUING UP FOR THE 2014-19 TARIFF PERIOD

2014-19 tariff period:

on COD and ACE and it is as follows:

and additional capital expenditure in 2017-18 and 2018-19:

reactor at Vemagiri Sub-station w.e.f. 29.3.2018.