CENTRAL ELECTRICITY REGULATORY COMMISSION

NEW DELHI

Petition No. 9/TT/2023

Coram:
Shri Jishnu Barua, Chairperson
Shri Ramesh Babu V., Member

Date of Order: 13.06.2025

In the matter of:

Approval under Regulation 86 of the Central Electricity Regulatory Commission

(Conduct of Business) Regulations, 1999 and Central Electricity Regulatory
Commission (Terms and Conditions of Tariff) Regulations, 2019 for the determination
of transmission tariff from COD to 31.3.2024 for the transmission assets under “Eastern
Region Strengthening Scheme XX (ERSS – XX)'' in the Eastern Region.

And in the matter of:

Power Grid Corporation of India Ltd.
SAUDAMINI, Plot No-2,
Sector-29, Gurgaon-122001 (Haryana). ....Petitioner

Versus

1. Bihar State Power (Holding) Company Limited,

Vidyut Bhawan, Bailey Road,
Patna – 800001.
2. West Bengal State Electricity Distribution Company Limited,
Bidyut Bhawan, Bidhan Nagar,
Block DJ, Sector-II, Salt Lake City,
Calcutta - 700091.
3. Grid Corporation of Orissa Limited
Shahid Nagar,
Bhubhaneswar - 751007.

4. Damodar Valley Corporation,

DVC Tower, Maniktala,
Civic Centre, VIP Road,
Calcutta - 700054.
5. Power Department,
Government of Sikkim,
Gangtok - 737001.

Order in Petition No. 9/TT/2023

Page 1 of 104
 6. Jharkhand State Electricity Board,
In front of Main Secretariat
Doranda, Ranchi- 834002. ... Respondent(s)

Parties Present: Ms. Swapna Seshadri, Advocate, PGCIL

Shri Utkarsh Singh, Advocate, PGCIL
Ms. Sneha, Advocate, PGCIL

ORDER
The Power Grid Corporation of India Limited (hereinafter referred to as “the

Petitioner”), had filed the instant Petition for the determination of transmission tariff

under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff)

Regulations, 2019 (hereinafter referred to as “the 2019 Tariff Regulations”) for the

period from COD to 31.3.2024 in respect of the following transmission assets under

“Eastern Region Strengthening Scheme XX (ERSS – XX)'' (hereinafter referred to as

“the transmission project”) in the Eastern Region:

Asset-I: 400/220 kV 500 MVA ICT IV along with 400kV Bay at Biharsharif
(POWERGRID) Substation and 220 kV Bay at Biharsharif (BSPTCL) Substation
alongwith 220 kV interconnecting line from Biharsharif (BSPTCL) Substation to 220 kV
bushing of ICT installed at Biharsharif (POWERGRID) Substation;
Asset-II: Replacement of 220/132 kV, 1X50 MVA ICT with 220/132 kV 160 MVA ICT
along with suitable modification of bay equipment at Malda Substation;
Asset-III: Reconductoring of 220 kV D/C New Purnea – Purnea Ckt.-I and Ckt.-II
transmission line along with modification of 220 kV bays equipments at New Purnea &
Purnea Substations;
Asset-IV: 400/132 kV, 315 MVA ICT III along with associated bays at Lakhisarai
Substation;
Asset-V: 400/132 kV, 315 MVA ICT III along with associated bays at Banka Substation;
Asset-VI: 420 kV, 1X125 MVAR Bus Reactor along with associated bay at
Susbhasgram Substation;
Asset-VII: Conversion of 63 MVAR fixed line Reactor at New Purnea end of one circuit
of Kishanganj – New Purnea 400 kV D/C line to Switchable Line Reactor (SLR);
Asset-VIII: 400/132 kV, 500 MVA ICT along with associated bays at Maithon
Substation;
Asset-IX: Reconductoring of 400 kV D/C Rangpo – New Siliguri transmission line along
with modification of 400 kV bays equipments at New Siliguri Substations;

Order in Petition No. 9/TT/2023

Page 2 of 104
Asset-X: 765 kV, 80 MVAR (single phase) Spare Reactor Unit at New Ranchi
Substation; and
Asset-XI: 220/132 kV, 100 MVA ICT along with associated bays at Rangpo GIS
Substation.
2. The Petitioner has made the following prayers in the instant Petition:

“
1) Approve the Transmission Tariff for the tariff block 2019-24 block for the assets
covered under this petition, as per para –8.3 above.
2) Admit the capital cost as claimed in the Petition and approve the Additional
Capitalisation incurred / projected to be incurred.
3) Approve the DOCO for the subject Assets as claimed and allow full tariff as
claimed under instant petition.
4) Approve the initial spares as claimed in the instant petition.
5) Allow the Petitioner to claim the overall security expenses and consequential
IOWC on that security expenses separately.
6) 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
2019 as per para 8.3 above for respective block.
7) 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.
8) 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.
9) 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 beneficiaries.
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.
11) Allow interim tariff in accordance with Regulation 10(3) of Central Electricity
Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 for
purpose of inclusion in the PoC charges.
and pass such other relief as the 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) of the transmission project was accorded by

the Board of Directors (BoD) of the Petitioner’s Company in its meeting held

Order in Petition No. 9/TT/2023

Page 3 of 104
 on 2.11.2017 vide Memorandum No. C/CP/PA1718-12-0A-IA008 dated

27.11.2017 at an estimated cost of ₹35883.00 lakh, including an IDC of

₹2207.00 lakh based on the June 2017 price level. The project was scheduled

to be commissioned within 30 months from the date of the IA.

b. The Petitioner, vide affidavit dated 7.11.2022, has submitted Revised Cost

Estimate (RCE) for the project “Eastern Region Strengthening Scheme XX

(ERSS – XX)”, which was accorded by the Competent Authority, i.e.,

Chairman and Managing Director (CMD) of the Petitioner Company on

31.7.2022 vide Memorandum No. C/CP/PA2223-05-0S-RCE003 dated

1.8.2022 with Revised Cost Estimate of the project as ₹34789.00 lakh,

including IDC of ₹1483.00 lakh based on June 2022 price level.

c. The scope of work covered under the transmission project is as follows:

Transmission Lines:
i. Reconductoring of Rangpo – New Siliguri 400kV D/C line
The existing Twin ACSR Moose line is to be re-conductored with Twin
HTLS conductor

ii. Reconductoring of New Purnea – Purnea 220kV D/C line

The existing New Purnea (400/220 kV) – Purnea (220/132 kV) 220 kV
D/C line needs to be re-conductored with a Single HTLS conductor
Substation:
(a) Extension at Biharsharif (PG) Sub-station
▪ 400/220 kV, 500 MVA ICT alongwith associated bays

(b) Extension at Biharsharif (BSPTCL) Sub-station

▪ 220 kV ICT bay [along with 220 kV interconnecting line from this bay
to 220 kV bushing of ICT installed at Biharshariff (POWERGRID) Sub-
station

(c) Extension at Maithon Sub-station

▪ 400/220kV, 500 MVA ICT along with associated bays

Order in Petition No. 9/TT/2023

Page 4 of 104
 (d) Extension at Banka Sub-station

▪ 400/220kV, 315 MVA ICT along with associated bays

(e) Extension at Lakhisarai Sub-station

▪ 400/220kV, 315 MVA ICT along with associated bays

(f) Extension at Rangpo Sub-station

▪ 220/132kV, 100 MVA ICT along with associated bays

▪ Modification of 400kV bay equipment of Rangpo – New Siliguri 400kV

D/C line

(g) Extension at New Siliguri 400/220kV Sub-station

▪ Modification of 400kV bay equipment of Rangpo – New Siliguri 400kV

D/C line

(h) Extension at Malda Sub-station

▪ Replacement of 220/132 kV, 1X50 MVA ICT with 220/132 kV, 160
MVA ICT along with suitable modification of bay equipment

(i) Extension at Subhasgram Sub-station

▪ 420 kV, 125 MVAR Bus Reactor along with associated bay

(j) Extension at Ranchi (New) 765/400kV Sub-station

▪ 765 kV, 80 MVAR (Single Phase) spare Reactor Unit

(k) Extension at New Purnea 400/220kV Sub-station

▪ Conversion of 63 MVAR fixed line Reactor at New Purnea end of one

circuit of Kishanganj – New Purnea 400kV D/C line to switchable line
Reactor.

▪ Modification of 220kV bay equipment of New Purnea – Purnea 220kV

D/C line.

(l) Extension at Purnea 220/132 kV Sub-station

▪ Modification of 220kV bay equipment of New Purnea – Purnea 220kV

D/C line

d. As per the IA dated 27.11.2017, the transmission assets were scheduled to

be commissioned within 30 months from the date of IA, i.e., by 1.5.2020. The

details of the transmission assets including scheduled commercial operation

Order in Petition No. 9/TT/2023

Page 5 of 104
 date (SCOD), date of commercial operation (COD), and time overrun, are as

follows:

Assets SCOD COD Time over-run

Asset-I 1.5.2020 6.9.2019 NIL
Asset-II 1.5.2020 1.10.2019 NIL
Asset-III 1.5.2020 21.12.2019 NIL
Asset-IV 1.5.2020 31.12.2019 NIL
Asset-V 1.5.2020 1.1.2020 NIL
Asset-VI 1.5.2020 13.1.2020 NIL
Asset-VII 1.5.2020 19.2.2020 NIL
Asset-VIII 1.5.2020 31.7.2020 92 days
Asset-IX 1.5.2020 31.3.2021 335 days
Asset-X 1.5.2020 2.4.2021 337 days
Asset-XI 1.5.2020 19.2.2022 660 days

4. The Petitioner has submitted the following regarding Assets-II, III, VII, and IX:

a. Asset-II: Replacement of 220/132 kV, 1X50 MVA ICT with 220/132 kV 160
MVA ICT along with suitable modification of bay equipment at Malda
Substation. (COD: 1.10.2019).

With regards to Asset-II, the Petitioner has submitted that it is a replacement

of an already existing 50 MVA ICT with the new 160 MVA ICT at the Malda

Sub-station. The details are as follows:

Sl.
Particulars
No.
400/200/132 kV Malda in ER (also
i Substation
includes suitable bay modification)
50 MVA ICT alongwtih associated bays
ii Original Asset
(220 kV and 132 kV)
iii COD of Original Asset 1.9.1995
Auto Transformer at Malda in Eastern
iv Project of Original Asset
Region
311/TT/2019 (Truing up for period 2014-
v Current Petition no. of Original Project 19 and transmission tariff for period 2019-
24).
30.9.2019
Date of replacement of Original asset (one day prior to COD of replacement; in
Vi
(50 MVA) with new asset (160 MVA) line with relevant provision of the 2019
Tariff Regulations)
vii Date of COD of New 160 MVA ICT 1.10.2019

b. Asset-III: Re-conductoring of 220 kV D/C New Purnea-Purnea Ckt.-I and

Ckt.-II transmission line along with modification of 220kV bays equipment’s
at New Purnea & Purnea Substations. (COD: 21.12.2019)

Order in Petition No. 9/TT/2023

Page 6 of 104
 {Existing conductor of line re-conductored with single HTLS conductor}

The details are as follows:

Sl.
Particulars
No.
i Transmission line 220 kV D/C New Purnea – Purnea
ii Original Asset D/C line of 220 kV New Purnea - Purnea
iii COD of Original Asset 1.11.2003
LILO of 400 kV D/C Bonaigaon- Malda
iv Project of Original Asset line at Purnea and Substation at Purnea
(New) in Eastern Region
207/TT/2020 (Truing up for period 2014-
v Current Petition no. of Original Project 19 and transmission tariff for period 2019-
24).
20.12.2019
Date of replacement of Original
(one day prior to COD of replacement; in
vi conductor and New Siliguri’s bay
line with relevant provision of the 2019
equipment
Tariff Regulations)
vii Date of COD of New Asset 21.12.2019

The Petitioner has further submitted that the de-capitalization as per the

provision of the relevant regulation(s) will be done separately in the original

project against this asset.

c. Asset-VII: Conversion of 63 MVAR fixed line Reactor at New Purnea end of

one circuit of Kishanganj – New Purnea 400kV D/C line to Switchable Line
Reactor (SLR). (COD: 19.2.2020).
The details are as follows:

Sl.
Particulars
No.
I Substation 400/200kV New Purnea
Fixed line Reactor at New Purnea for one
ii Original Asset circuit of 400kV D/C New Siliguri – New
Purnea line.
iii COD of Original Asset 1.7.2011
iv Project of Original Asset ERSS-II in Eastern Region
327/TT/2019 (Truing up for period 2014-
V Current Petition no. of Original Project 19 and transmission tariff for period 2019-
24).
Switchable line Reactor at New Purnea
Vi New Asset after Conversion for one ckt. of 400kV D/C Kishanganj –
New Purnea line

Order in Petition No. 9/TT/2023

Page 7 of 104
 Sl.
Particulars
No.
{Kishanganj – New Purnea formed after
LILO of New Siliguri – New Purnea at
Kishanganj}
Date of conversion of FLR to SLR is
vii 19.2.2020
date of COD

d. Asset-IX: Re-conductoring of 400kV D/C Rangpo – New Siliguri transmission

line along with modification of 400kV bay equipments at New Siliguri
Substations. (COD: 31.3.2021)
{Existing Twin ACSR Moose line re-conductored with Twin HTLS conductor}

The details are as follows:

Sl.
Particulars
No.
i Transmission line 400 kV D/C Rangpo – New Siliguri
ii Sub-station New Siliguri (Bay Modification)
Instant Asset 400 kV D/C Rangpo – new
Siliguri has been formed as follows:
(i) Using portion of 400 kV D/C
Teesta V – New Siliguri line
Original Asset (under project Teesta-V)
(ii) Using Ckt.-II of 400 kV D/C
Teesta V – New Siliguri line at
Rangpo (under project Sikkim
B)
Twin ACSR Moose line of
iii Original Asset (number-1)
400kV D/C Teesta V – New Siliguri line
iv COD of Original Asset (number-1) 1.2.2008 {Ckt.-I} & 1.6.2008 {Ckt.-II}
v Project of Original Asset (number-1) Teesta – V in Eastern Region
465/TT/2020 (Truing up for period 2014-
Current Petition no. of Original Project
vi 19 and transmission tariff for period 2019-
(number-1)
24).
Twin ACSR Moose line of
400kV D/C Rangpo – New Siliguri
vii Original Asset (number-2) {Rangpo – New Siliguri formed after LILO
of 400kV D/C Teesta-V – New Siliguri at
Rangpo}
viii COD of Original Asset (number-2) 24.4.2014 {Ckt.-I} & 31.10.2014 {Ckt.-II}
ix Project of Original Asset (number-2) Sikkim Part-B in Eastern Region
382/TT/2020 (Truing up for period 2014-
Current Petition no. of Original Project
x 19 and transmission tariff for period 2019-
(number-2)
24).
Date of replacement of Original
xi conductor and New Siliguri’s bay 30.3.2021
equipment

Order in Petition No. 9/TT/2023

Page 8 of 104
 Sl.
Particulars
No.
(one day prior to COD of replacement; in
line with relevant provision of
Regulations’2019)
xii Date of COD of New Asset 31.3.2021

5. The Petitioner has further submitted that the de-capitalization as per the provision

of the relevant regulation(s) will be done separately in the original project(s) against

these transmission assets.

6. The Respondents are distribution licensees and power departments that are

procuring transmission service from the Petitioner, mainly beneficiaries of the Eastern

Region.

7. The Petitioner has served a copy of the petition on the Respondents, and notice

regarding the filing of this Petition has also been published in newspapers in accordance

with Section 64 of the Electricity Act, 2003. None of the Respondents has filed a reply

to the Petition despite notice. No comments or suggestions have been received from

the general public in response to the aforesaid notice published in the newspapers by

the Petitioner.

8. This order is issued considering the submissions made by the Petitioner in the

petition vide affidavit dated 25.5.2022 and Petitioner’s affidavits dated 24.8.2022,

7.11.2022, 25.9.2023, 16.11.2023, and 10.1.2024.

9. The hearing in this matter was held on 16.7.2024, and the order was reserved.

DETERMINATION OF ANNUAL FIXED CHARGES FOR 2019-24 TARIFF PERIOD

10. The Petitioner has claimed the following transmission charges in respect of the

transmission assets for the 2019-24 tariff period:

Order in Petition No. 9/TT/2023

Page 9 of 104
Asset-I
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
Depreciation 81.01 173.33 182.43 187.84 189.65
Interest on Loan 83.49 169.24 164.68 155.68 142.55
Return on Equity 86.45 184.97 194.68 200.45 202.38
O&M Expenses 133.02 242.50 251.00 260.07 268.71
Interest on Working
9.57 18.53 19.12 19.55 19.75
Capital
Total 393.54 788.57 811.91 823.59 823.04
Asset-II
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
Depreciation 24.54 64.22 68.80 68.80 68.80
Interest on Loan 24.63 61.34 60.91 55.60 50.26
Return on Equity 26.19 68.53 73.42 73.42 73.42
O&M Expenses 19.60 40.64 42.08 43.52 45.12
Interest on Working
1.99 4.70 4.90 4.88 4.86
Capital
Total 96.95 239.43 250.11 246.22 242.46
Asset-III
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
102 days)
Depreciation 1.83 7.94 9.53 10.40 10.62
Interest on Loan 1.76 7.30 8.21 8.33 7.77
Return on Equity 1.95 8.48 10.18 11.10 11.33
O&M Expenses 0.00 0.00 0.00 0.00 0.00
Interest on Working
0.08 0.36 0.42 0.45 0.45
Capital
Total 5.62 24.08 28.34 30.28 30.17
Asset-IV
(₹ in lakh)
2019-20
Particulars (pro-rata 92 2020-21 2021-22 2022-23 2023-24
days)
Depreciation 22.94 101.08 112.41 118.76 120.35
Interest on Loan 21.90 92.04 95.13 92.78 85.40
Return on Equity 23.82 105.08 117.02 123.79 125.48
O&M Expenses 40.47 166.79 172.64 178.86 184.84
Interest on Working
2.80 11.77 12.43 12.86 13.04
Capital
Total 111.93 476.76 509.63 527.05 529.11

Order in Petition No. 9/TT/2023

Page 10 of 104
Asset-V
(₹ in lakh)
2019-20
Particulars (pr-rata 91 2020-21 2021-22 2022-23 2023-24
days)
Depreciation 30.45 136.42 153.86 164.22 166.53
Interest on Loan 27.18 116.74 122.99 121.39 111.43
Return on Equity 29.95 135.27 153.76 164.82 167.28
O&M Expenses 40.03 166.79 172.64 178.86 184.84
Interest on Working
3.06 13.13 14.02 14.59 14.75
Capital
Total 130.67 568.35 617.27 643.88 644.83
Asset-VI
(₹ in lakh)
2019-20
Particulars (pro-rata 79 2020-21 2021-22 2022-23 2023-24
days)
Depreciation 8.98 46.67 51.13 51.92 51.92
Interest on Loan 8.78 43.62 44.40 41.34 37.47
Return on Equity 9.58 49.81 54.56 55.41 55.41
O&M Expenses 6.94 33.28 34.45 35.66 36.91
Interest on Working
0.71 3.56 3.77 3.80 3.79
Capital
Total 34.99 176.94 188.31 188.13 185.50
Asset-VII
(₹ in lakh)
2019-20
Particulars (pro-rata 42 2020-21 2021-22 2022-23 2023-24
days)
Depreciation 0.42 5.01 6.39 6.84 6.99
Interest on Loan 0.41 4.76 5.70 5.65 5.28
Return on Equity 0.45 5.35 6.82 7.30 7.46
O&M Expenses 3.69 33.28 34.45 35.66 36.91
Interest on Working
0.18 1.68 1.79 1.85 1.91
Capital
Total 5.15 50.08 55.15 57.30 58.55
Asset-VIII
(₹ in lakh)
2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
244 days)
Depreciation 83.10 135.09 140.44 140.44
Interest on Loan 76.58 117.07 112.34 102.39
Return on Equity 89.28 145.22 150.92 150.92
O&M Expenses 161.84 250.57 259.62 268.25
Interest on Working Capital 10.09 15.78 16.24 16.43
Total 420.89 663.73 679.56 678.43

Order in Petition No. 9/TT/2023

Page 11 of 104
 Asset-IX
(₹ in lakh)
2020-21
Particulars (pro-rata 1 2021-22 2022-23 2023-24
day)
Depreciation 1.81 697.09 746.61 761.40
Interest on Loan 1.72 635.25 629.16 589.53
Return on Equity 1.94 743.47 796.29 812.07
O&M Expenses 0.00 0.82 0.82 0.82
Interest on Working Capital 0.08 29.23 30.58 30.37
Total 5.55 2105.86 2203.46 2194.19
Asset-X
(₹ in lakh)
2021-22
Particulars (pro-rata 364 2022-23 2023-24
days)
Depreciation 60.42 66.96 69.03
Interest on Loan 43.90 45.23 42.78
Return on Equity 61.57 68.49 70.67
O&M Expenses 0.00 0.00 0.00
Interest on Working Capital 2.17 2.37 2.39
Total 168.06 183.05 184.87
Asset-XI
(₹ in lakh)
2021-22
Particulars (pro-rata 41 2022-23 2023-24
days)
Depreciation 19.76 187.43 205.45
Interest on Loan 16.59 150.76 153.41
Return on Equity 21.09 200.02 219.25
O&M Expenses 6.20 57.15 59.21
Interest on Working Capital 0.99 9.23 9.80
Total 64.63 604.59 647.12

11. The Petitioner has claimed the following Interest on Working Capital (IWC) in

respect of the transmission assets for the 2019-24 tariff period:

Asset-I
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
O&M Expenses 19.51 20.21 20.92 21.67 22.39
Maintenance Spares 35.11 36.38 37.65 39.01 40.31
Receivables 85.14 97.22 100.10 101.54 101.19
Total Working Capital 139.76 153.81 158.67 162.22 163.89
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
Interest on Working Capital 9.57 18.53 19.12 19.55 19.75

Order in Petition No. 9/TT/2023

Page 12 of 104
Asset-II
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
O&M Expenses 3.27 3.39 3.51 3.63 3.76
Maintenance Spares 5.88 6.10 6.31 6.53 6.77
Receivables 23.84 29.52 30.84 30.36 29.81
Total Working Capital 32.99 39.01 40.66 40.52 40.34
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
Interest on Working
1.99 4.70 4.90 4.88 4.86
Capital

Asset-III
(₹ in lakh)
2019-20
(pro-rata
Particulars 2020-21 2021-22 2022-23 2023-24
102
days)
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 2.48 2.97 3.49 3.73 3.71
Total Working Capital 2.48 2.97 3.49 3.73 3.71
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
Interest on Working
0.08 0.36 0.42 0.45 0.45
Capital

Asset-IV
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
O&M Expenses 13.42 13.90 14.39 14.91 15.40
Maintenance Spares 24.15 25.02 25.90 26.83 27.73
Receivables 54.75 58.78 62.83 64.98 65.05
Total Working Capital 92.32 97.70 103.12 106.72 108.18
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
Interest on Working
2.80 11.77 12.43 12.86 13.04
Capital

Asset-V
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
91 days)
O&M Expenses 13.42 13.90 14.39 14.91 15.40
Maintenance Spares 24.15 25.02 25.90 26.83 27.73
Receivables 64.62 70.07 76.10 79.38 79.28
Total Working Capital 102.19 108.99 116.39 121.12 122.41
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
Interest on Working
3.06 13.13 14.02 14.59 14.75
Capital

Order in Petition No. 9/TT/2023

Page 13 of 104
Asset-VI
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
79 days)
O&M Expenses 2.68 2.77 2.87 2.97 3.08
Maintenance Spares 4.82 4.99 5.17 5.35 5.54
Receivables 19.93 21.82 23.22 23.19 22.81
Total Working Capital 27.43 29.58 31.26 31.51 31.43
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
Interest on Working
0.71 3.56 3.77 3.80 3.79
Capital

Asset-VII
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
42 days)
O&M Expenses 2.68 2.77 2.87 2.97 3.08
Maintenance Spares 4.82 4.99 5.17 5.35 5.54
Receivables 5.52 6.17 6.80 7.06 7.20
Total Working Capital 13.02 13.93 14.84 15.38 15.82
Rate of Interest (in %) 12.05 12.05 12.05 12.05 12.05
Interest on Working
0.18 1.68 1.79 1.85 1.91
Capital

Asset-VIII
(₹ in lakh)
2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
244 days)
O&M Expenses 20.17 20.88 21.64 22.35
Maintenance Spares 36.31 37.59 38.94 40.24
Receivables 77.62 81.83 83.78 83.41
Total Working Capital 134.10 140.30 144.36 146.00
Rate of Interest (in %) 11.25 11.25 11.25 11.25
Interest on Working Capital 10.09 15.78 16.24 16.43

Asset-IX
(₹ in lakh)
2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
1 day)
O&M Expenses 0.07 0.07 0.07 0.07
Maintenance Spares 0.12 0.12 0.12 0.12
Receivables 249.71 259.63 271.66 269.78
Total Working Capital 249.90 259.82 271.85 269.97
Rate of Interest (in %) 11.25 11.25 11.25 11.25
Interest on Working Capital 0.08 29.23 30.58 30.37

Order in Petition No. 9/TT/2023

Page 14 of 104
Asset-X
(₹ in lakh)
2021-22
Particulars (pro-rata 364 2022-23 2023-24
days)
O&M Expenses 0.00 0.00 0.00
Maintenance Spares 0.00 0.00 0.00
Receivables 20.78 22.57 22.73
Total Working Capital 20.78 22.57 22.73
Rate of Interest (in %) 10.50 10.50 10.50
Interest on Working Capital 2.17 2.37 2.39

Asset-XI
(₹ in lakh)
2021-22
Particulars (pro-rata 41 2022-23 2023-24
days)
O&M Expenses 4.60 4.76 4.93
Maintenance Spares 8.29 8.57 8.88
Receivables 70.94 74.54 79.56
Total Working Capital 83.83 87.87 93.37
Rate of Interest (in %) 10.50 10.50 10.50
Interest on Working Capital 0.99 9.23 9.80

Data of Commercial Operation (“COD”)

12. The Petitioner has claimed the actual date of commercial operation in respect of

the transmission assets as follows:

Assets COD
Asset-I
400/220 kV 500 MVA ICT IV along with 400 kV Bay at
Biharsharif (POWERGRID) Sub-station and 220 kV
Bay at Biharsharif (BSPTCL) Substation along with 220 6.9.2019
kV interconnecting line from Biharsharif (BSPTCL)
Sub-station to 220 kV bushing of ICT installed at
Biharsharif (POWERGRID) Sub-station
Asset-II
Replacement of 220/132 kV, 1X50 MVA ICT with 1.10.2019
220/132 kV 160 MVA ICT along with suitable
modification of bay equipment at Malda Substation
Asset-III
Reconductoring of 220 kV D/C New Purnea-Purnea
Ckt.-I and Ckt.-II transmission line along with 21.12.2019
modification of 220 kV bays equipments
at New Purnea & Purnea Sub-stations
Asset-IV
400/132 kV, 315 MVA ICT III along with associated 31.12.2019
bays at Lakhisarai Sub-station
Asset-V 1.1.2020

Order in Petition No. 9/TT/2023

Page 15 of 104
 Assets COD
400/132 kV, 315 MVA ICT III along with associated
bays at Banka Sub-station
Asset-VI
420 KV, 1X125 MVAR Bus Reactor along with 13.1.2020
associated bay at Subhasgram Sub-station
Asset-VII
Conversion of 63 MVAR fixed line Reactor at New
Purnea end of one circuit of Kishanganj-New Purnea 19.2.2020
400 kV D/C line to Switchable Line
Reactor (SLR)
Asset-VIII
400/132 kV, 500 MVA ICT along with associated bays 31.7.2020
at Maithon Sub-station
Asset-IX
Reconductoring of 400 kV D/C Rangpo-New Siliguri 31.3.2021
transmission line along with modification of 400 kV
bays equipment at New Siliguri Substations
Asset-X
765 kV, 80 MVAR (single phase) Spare Reactor Unit at 2.4.2021
New Ranchi Sub-station
Asset-XI
220/132 kV, 100 MVA ICT along with associated bays 19.2.2022
at Rangpo GIS Sub-station

13. Regulation 5 of the 2019 Tariff Regulations provides as follows:

“5. Date of Commercial Operation: (1) The date of commercial operation of a

generating station or unit thereof or a transmission system or element thereof and
associated communication system shall be determined in accordance with the
provisions of the Grid Code.

(2) In case the transmission system or element thereof executed by a transmission

licensee is ready for commercial operation but the interconnected generating station or
the transmission system of other transmission licensee as per the agreed project
implementation schedule is not ready for commercial operation, the transmission
licensee may file petition before the Commission for approval of the date of commercial
operation of such transmission system or element thereof:

Provided that the transmission licensee seeking the approval of the date of commercial
operation under this clause shall give prior notice of at least one month, to the generating
company or the other transmission licensee and the long term customers of its
transmission system, as the case may be, regarding the date of commercial operation:

Provided further that the transmission licensee seeking the approval of the date of
commercial operation of the transmission system under this clause shall be required to
submit the following documents along with the petition:

(a) Energisation certificate issued by the Regional Electrical Inspector under

Central Electricity Authority;
(b) Trial operation certificate issued by the concerned RLDC for charging
element with or without electrical load;
(c) Implementation Agreement, if any, executed by the parties;

Order in Petition No. 9/TT/2023

Page 16 of 104
 (d) Minutes of the coordination meetings or related correspondences regarding
the monitoring of the progress of the generating station and transmission
systems;
(e) Notice issued by the transmission licensee as per the first proviso under this
clause and the response;
(f) Certificate of the CEO or MD of the company regarding the completion of the
transmission system including associated communication system in all
respects.”

14. The Petitioner has submitted the following documents in support of COD of the

transmission assets covered under the instant petition:

Asset COD Document Submitted

CEA Approval of Energization dated 30.8.2019, Certificate of
Asset-I 6.9.2019 completion of Trial Operation of Transmission Element dated
10.10.2019, CMD certificate and COD letter dated 15.10.2019
CEA Approval of Energization dated 27.9.2019, Certificate of
Asset-II 1.10.2019 completion of Trial Operation of Transmission Element dated
23.10.2019, CMD certificate and COD letter dated 30.10.2019
CEA Approval of Energization dated 19.12.2019, Certificate of
Asset-III 21.12.2019 completion of Trial Operation of Transmission Element dated
6.4.2022 and COD letter dated 7.1.2020
CEA Approval of Energization dated 27.12.2019, Certificate of
Asset-IV 31.12.2019 completion of Trial Operation of Transmission Element dated
14.1.2020, CMD certificate and COD letter dated 7.1.2020
CEA Approval of Energization dated 27.12.2019, Certificate of
Asset-V 1.1.2020 completion of Trial Operation of Transmission Element dated
14.1.2020, CMD certificate and COD letter dated 7.1.2020
CEA Approval of Energization dated 24.1.2020 Certificate of
Asset-VI 13.1.2020 completion of Trial Operation of Transmission Element dated
7.2.2020, CMD certificate and COD letter dated 30.3.2020
CEA Approval of Energization dated 10.2.2020, Certificate of
Asset-VII 19.2.2020 completion of Trial Operation of Transmission Element dated
15.5.2020, CMD certificate and COD letter dated 18.3.2020
CEA Approval of Energization dated 1.7.2020, Certificate of
Asset-VIII 31.7.2020 completion of Trial Operation of Transmission Element dated
2.9.2020, CMD certificate and COD letter dated 10.9.2020
CEA Approval of Energization dated 24.3.2021, Certificate of
Asset-IX 31.3.2021 completion of Trial Operation of Transmission Element dated
24.1.2022, and COD letter dated 5.4.2021
CEA Approval of Energization dated 15.2.2021, CMD certificate,
Asset-X 2.4.2021
and COD letter dated 12.4.2021
CEA Approval of Energization dated 12.3.2021,Certificate of
Asset-XI 19.2.2022 completion of Trial Operation of Transmission Element dated
5.4.2022 and CMD certificate COD letter dated 22.2.2022

15. We have considered the submissions made by the Petitioner.

Order in Petition No. 9/TT/2023

Page 17 of 104
16. In case of Asset-III, the Petitioner has submitted that Re-conductoring of 220 kV

D/C New Purnea-Purnea Ckt.-I and Ckt.-II transmission line along with modification of

220 kV bay equipments at New Purnea and Purnea Substations, and in the case of

Asset-IX, the Petitioner has carried out Re-conductoring of the 400 kV D/C Rangpo-

New Siliguri transmission line along with modification of 400 kV bay equipment at New

Siliguri Substation.

17. First, we will be dealing with Asset-III.

18. We are of the view that in the case of Assets III, the Petitioner has carried out the

stringing of new conductors on existing towers using the same RoW. As per the scope

of work mentioned in the Investment Approval, the petitioner has mentioned the

replacement of terminal end equipment at both the substations, i.e., New Purnea and

Purnea. Based on the auditor certificate and Form-5 , it is noted that the petitioner has

not claimed any expenditure towards terminal end equipments at New Purnea and

Purnea Substations. .

19. In case of Asset-III, the Petitioner has replaced the conductors of Purnea-Purnea

(New) 220 kV D/C line of POWERGRID with HTLS conductor and claimed COD of the

ckt-1 and ckt-2 as 21.12.2019. The details of the existing Purnea-Purnea (New) 220 kV

D/C transmission line and tariff approval details of the same is as follows:

Name of the transmission COD of the transmission Petition No. under which
line asset considered tariff is approved.
220 kV Purnea-Purnea 1.11.2003 Vide order dated 21.09.2021
(New) D/C transmission in Petition No. 207/TT/2020
line has trued-up tariff for 2014-
19 and granted tariff for
2019-24 tariff Period.

20. As per the Petitioner’s submissions, it is observed that for Asset-III, the Petitioner

initially commissioned the 220 kV Purnea-Purnea (New) D/C transmission line in the

year 2003, and re-conductoring work has been completed on 21.12.2019. The existing

Order in Petition No. 9/TT/2023

Page 18 of 104
220 kV Purnea-Purnea (New) D/C transmission line has completed its useful life of 16

years as on 21.12.2019.

21. Regulation 3(73) of the 2019 Tariff Regulations defines useful life in relation to

transmission lines as 35 years. The towers installed in both transmission assets have

not completed their useful life, and only their conductor have been replaced under the

re-conductoring scheme. We observe that the transmission assets covered in the

instant Petition are not new transmission assets. Instead, they are re-conductoring and

upgrading the already existing transmission assets, which are expenses in the nature

of additional capitalization in the transmission assets, for which the tariff has already

been approved.

22. The Petitioner is, accordingly, directed to claim the capital cost [under additional

capital expenditure (ACE)] in respect of Asset-III incurred towards the re-conductoring

of 220 kV Purnea-Purnea (New) D/C transmission line under the Transmission System,

namely LILO of 400 kV D/C Bonaigaon- Malda Transmission Line at Purnea and Sub-

station at Purnea (New) in Eastern Region in Petition No. 207/TT/2020 at the time of

truing up during 2019-24 tariff period and determination of transmission tariff for 2024-

29 tariff period. Accordingly, we are not inclined to grant a tariff for Asset-III in the instant

petition.

Asset-VII:

23. Similarly, in respect of Asset-VII, i.e., Conversion of 63 MVAR fixed line Reactor

at New Purnea end of one circuit of Kishanganj-New Purnea 400 kV D/C line to

Switchable Line Reactor (SLR), the Petitioner has commissioned the fixed line Reactor

at new Purnea end of one ckt. New Siliguri-New Purnea 400 kV D/C (quad) line on

1.7.2011, and the present scope of the work is only modification of the existing fixed

Reactor, which has completed about only 9 years of useful life as on 19.02.2020. Since

Order in Petition No. 9/TT/2023

Page 19 of 104
the scope of work is modification of an existing transmission asset, we are of the view

that the expenses incurred towards the fixed line Reactor into switchable line Reactor

are in the nature of Additional Capitalization. Therefore, the Petitioner is directed to

claim the capital cost [conversion under additional capital expenditure (ACE)] incurred

on Asset-VII under Transmission System in Petition No. 327/TT/2019, i.e., “ERSS-II in

Eastern Region Project” while filing true-up of tariff for the 2019-24 and determination

of tariff for the 2024-29 tariff period. Accordingly, we are not inclined to grant a tariff for

Asset-VII in the instant tariff Petition.

Asset-IX:

24. The Petitioner has carried out the stringing of new conductors on existing towers

using the same RoW. In the case of Asset-IX, the Petitioner has carried out the

replacement of the terminal bay equipment with high-rating equipment at the New

Siliguri substation. As per Form-5, it is noted that the petitioner has claimed an amount

of Rs. 934.82 lakhs towards substation equipment. As per the auditor certificate dated

4.08.2021, the petitioner has submitted that an amount of Rs. 1038.59 lakhs has been

incurred towards the substation.

25. In case of Asset-IX, the Petitioner initially commissioned the 400 kV D/C Teesta-

V-New Siliguri transmission line, which is part of the Transmission System associated

with Teesta (Stage-V) HEP in the Eastern Region. The Petitioner has made LILO of

the existing 400 kV D/C Teesta-V-New Siliguri transmission line at Rangpo Substation

and claimed the tariff for LILO of the existing 400 kV D/C Teesta-V-New Siliguri

transmission line under Sikkim Part B in Eastern Region. As such, the Asset -IX is partly

covered under the Teesta-V HEP Transmission System in the Eastern Region and

partly under Sikkim Part-B Scheme in the Eastern Region is as follows:

Order in Petition No. 9/TT/2023

Page 20 of 104
 Name of the transmission COD of the transmission Petition No under which
line assets considered tariff is approved.
Transmission System 1.02.2008 (Ckt. I) &
associated with Teesta 1.06.2008 (Ckt-II) The Commission Vide order
(Stage-V) HEP in Eastern dated 16.6.2021 in Petition
Region: No. 465/TT/2020 has trued-
up tariff for 2014-19 and
Combined Asset of Ckt-I and granted tariff for 2019-24
Ckt-II of 400 kV Teesta tariff Period.
(Stage-V) Siliguri
Transmission Line;
Transfer of Power from
Generation Projects in
Sikkim to NR / WR Part-B” in
Eastern Region: The Commission Vide order
LILO of 400 kV D/C Teesta dated 14.11.2023 in Petition
V- Siliguri Line (Ckt-I) at 1.12.2014((Ckt. I) & No. 382/TT/2020 has trued-
Rangpo and associated up tariff for 2014-19 and
bays (Asset-2) granted tariff for 2019-24
tariff Period.
LILO of 400 kV D/C Teesta 31.10.2014 ((Ckt-II)
V-Siliguri line (Ckt-II) at
Rangpo and associated
bays at Rangpo Sub-station

The single line diagram of the same is as follows:

(The Petitioner in the instant tariff petition has claimed a tariff for re-conductoring of the
400 kV D/C Rangpo-New Siliguri (yellow portion of the above-mentioned diagram). It is
noted that the Petitioner in the case of Asset-IX has replaced only conductors of 400 kV
D/C Rangpo-New Siliguri transmission line with HTLS conductors and terminal end
equipments at New Siliguri and claimed COD as 31.3.2021.)

26. Regulation 3(73) of the 2019 Tariff Regulations defines useful life in relation to

transmission lines as 35 years. The towers installed in both transmission assets have

not completed their useful life, and only their conductor and associated bay equipment

have been replaced under the re-conductoring scheme. Regulation 3(73) of the 2019

Tariff Regulations defines the useful life of transmission lines as 35 years. The towers

Order in Petition No. 9/TT/2023

Page 21 of 104
installed in both transmission assets have not yet completed their useful life; only the

conductors and associated bay equipment have been replaced under the re-

conductoring scheme. In the case of the re-conductoring of the Rangpo–New Siliguri

transmission line, we observe that the petitioner has incurred an expenditure of

₹13,332.59 lakhs towards the transmission line and ₹1,038.59 lakhs towards the

substation.

27. We observe that the transmission assets covered in the instant Petition are not

new transmission assets. Instead, they are re-conductoring and upgrading the already

existing transmission assets, which are expenses in the nature of additional

capitalization in the transmission assets, for which the tariff has already been approved.

28. Accordingly, in respect of Asset-IX, i.e., 400 kV D/C Rangpo-New Siliguri

transmission line, the Petitioner is directed to claim the capital cost [under additional

capital expenditure (ACE)] in Petition No. 465/TT/2020, i.e., Transmission System

associated with Teesta (Stage-V) HEP in Eastern Region, while filing true-up of

transmission tariff for 2019-24 and determination of tariff for 2024-29 tariff period.

Accordingly, we are not inclined to grant a tariff for Asset-IX in the instant petition.

29. In view of the above discussions, we are not inclined to grant a tariff for Assets-

III, VII, and Asset-IX and the same is as follows:

Asset Name Direction of the Commission

Asset-III
The Petitioner is directed to claim as
Reconductoring of 220 kV D/C New Purnea- Purnea
ACE under Petition No. 207/TT/2020
Ckt.-I and Ckt.-II transmission line along with
while filing true-up of tariff for the 2019-
modification of 220 kV bays equipment
24 Tariff Period.
at New Purnea & Purnea Sub-stations
Asset-VII
The Petitioner is directed to claim as
Conversion of 63 MVAR fixed line Reactor at New
ACE under Petition No. 327/TT/2019
Purnea end of one circuit of Kishanganj-New Purnea
while filing true-up of tariff for 2019-24
400 kV D/C line to Switchable Line
Tariff Period.
Reactor (SLR)
The Petitioner is directed to claim as
Asset-IX
ACE under Petition No. The Petitioner is
Reconductoring of 400 kV D/C Rangpo-New Siliguri
directed to claim as ACE under Petition
transmission line along with modification of 400 kV
No. 465/TT/2020 while filing true-up of
bay equipment at New Siliguri Substations
tariff for the 2019-24 Tariff Period.

Order in Petition No. 9/TT/2023

Page 22 of 104
30. Taking into consideration the self-declaration of the COD letter, the CEA

Energisation Certificate, the Certificate of Completion of trial operation, and the

Petitioner’s CMD Certificate, the COD approved for the transmission assets is

considered for the purpose of transmission charges of the 2019-24 tariff period as

follows:

Asset Asset Description COD

400/220 kV 500 MVA ICT IV along with 400kV Bay at
Biharsharif (POWERGRID) Substation and 220kV Bay at
Biharsharif (BSPTCL) Substation along with 220 kV
Asset-I 6.9.2019
interconnecting line from Biharsharif (BSPTCL)
Substation to 220 kV bushing of ICT installed at
Biharsharif (POWERGRID) Substation.
Replacement of 220/132 kV, 1X50 MVA ICT with
Asset-II 220/132 kV 160 MVA ICT along with suitable 1.10.2019
modification of bay equipment at Malda Substation.
400/132 kV, 315 MVA ICT III along with associated bays
Asset-IV 31.12.2019
at Lakhisarai Substation.
400/132 kV, 315 MVA ICT III along with associated bays
Asset-V 1.1.2020
at Banka Substation.
420 kV, 1X125 MVAR Bus Reactor along with
Asset-VI 13.1.2020
associated bay at Susbhasgram Substation.
400/132 kV, 500 MVA ICT along with associated bays at
Asset-VIII 31.7.2020
Maithon Substation.
765 kV, 80 MVAR (single phase) Spare Reactor Unit at
Asset-X 2.4.2021
New Ranchi Substation.
220/132 kV, 100 MVA ICT along with associated bays at
Asset-XI 19.2.2022
Rangpo GIS Substation.

Capital Cost
31. Regulation 19 of the 2019 Tariff Regulations provides as follows:

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

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

(a) The expenditure incurred or projected to be incurred up to the date of

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

Order in Petition No. 9/TT/2023

Page 23 of 104
 (c) Any gain or loss on account of foreign exchange risk variation pertaining to
the loan amount availed during the construction period;
(d) Interest during construction and incidental expenditure during construction as
computed in accordance with these regulations;
(e) Capitalised initial spares subject to the ceiling rates in accordance with these
regulations;
(f) Expenditure on account of additional capitalization and de-capitalisation
determined in accordance with these regulations;
(g) Adjustment of revenue due to sale of infirm power in excess of fuel cost prior
to the date of commercial operation as specified under Regulation 7 of these
regulations;
(h) Adjustment of revenue earned by the transmission licensee by using the
assets before the date of commercial operation;
(i) Capital expenditure on account of ash disposal and utilization including
handling and transportation facility;
(j) Capital expenditure incurred towards railway infrastructure and its
augmentation for transportation of coal upto the receiving end of the
generating station but does not include the transportation cost and any other
appurtenant cost paid to the railway;
(k) Capital expenditure on account of biomass handling equipment and facilities,
for co-firing;
(l) Capital expenditure on account of emission control system necessary to meet
the revised emission standards and sewage treatment plant;
(m) Expenditure on account of fulfilment of any conditions for obtaining
environment clearance for the project;
(n) Expenditure on account of change in law and force majeure events; and
(o) Capital cost incurred or projected to be incurred by a thermal generating
station, on account of implementation of the norms under Perform, Achieve
and Trade (PAT) scheme of Government of India shall be considered by the
Commission subject to sharing of benefits accrued under the PAT scheme
with the beneficiaries.

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

(a) Capital cost admitted by the Commission prior to 1.4.2019 duly trued up by
excluding liability, if any, as on 1.4.2019;
(b) Additional capitalization and de-capitalization for the respective year of tariff
as determined in accordance with these regulations;
(c) Capital expenditure on account of 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.

(4) The capital cost in case of existing or new hydro generating station shall also include:
(a) cost of approved rehabilitation and resettlement (R&R) plan of the project in
conformity with National R&R Policy and R&R package as approved; and
(b) cost of the developer’s 10% contribution towards Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY) and Deendayal Upadhyaya Gram Jyoti Yojana

Order in Petition No. 9/TT/2023

Page 24 of 104
 (DDUGJY) project in the affected area.

(5) The following shall be excluded from the capital cost of the existing and new projects:
(a) The assets forming part of the project, but not in use, as declared in the tariff
petition;
(b) De-capitalised Assets after the date of commercial operation on account of
replacement or removal on account of obsolescence or shifting from one
project to another project:

Provided that in case replacement of transmission asset is recommended by

Regional Power Committee, such asset shall be de-capitalised only after its
redeployment;

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

(c) In case of hydro generating stations, any expenditure incurred or committed

to be incurred by a project developer for getting the project site allotted by the
State Government by following a transparent process;
(d) Proportionate cost of land of the existing project which is being used for
generating power from generating station based on renewable energy; and
(e) Any grant received from the Central or State Government or any statutory
body or authority for the execution of the project which does not carry any
liability of repayment.”

32. The Petitioner vide Auditor’s Certificates dated 31.10.2019, 16.1.2020,

10.2.2020, 20.2.2020, 24.5.2020, 15.6.2020, 15.10.2020, 4.8.2021, 31.8.2021 and

23.3.2022 for Assets-I, II, III, IV, V, VI, VII, VIII, IX, X, and XI respectively has claimed

capital cost incurred as on COD and Additional Capital Expenditure (ACE) projected to

be incurred in respect of the transmission asset and the same are as follows:

(₹ in lakh)
Apportioned Projected ACE
Expendit Estimated
Approved
Assets ure up to completion
Cost (As per 2019-20 2020-21 2021-22 2022-23 2023-24
COD cost
FR)
Asset-I
3772.19 2224.21 957.30 205.14 136.75 68.38 0.00 3591.78

Asset- II 1574.97 733.10 400.00 170.00 0.00 1303.10

Asset-III 167.16 118.83 16.47 32.95 24.71 8.24 0.00 201.20
Asset-IV 2079.56 1650.96 120.23 215.36 180.35 60.12 0.00 2227.02
Asset- V 2719.00 2096.24 174.51 305.40 305.40 87.26 0.00 2968.80
Asset- VI 1352.66 776.88 53.08 123.40 30.00 0.00 0.00 983.36
Asset- VII 293.67 64.98 10.69 39.68 11.34 5.67 0.00 132.36
Asset- VIII 3090.99 2275.99 202.58 200.00 0.00 0.00 2678.57
Asset- IX 17371.00 12880.95 971.27 560.00 0.00 14412.22
Asset- X 380.75 1001.84 187.85 51.62 25.81 1267.12
Asset- XI 2563.94 3342.52 48.59 350.00 300.00 4041.11
Total 35365.89 27166.50 1732.28 1294.51 2096.26 1122.91 325.81 33806.64

33. The capital cost claimed vis-à-vis the approved RCE cost is as follows:

Order in Petition No. 9/TT/2023

Page 25 of 104
 Apporti Apportio Projected ACE
oned ned Estimate
Expendi
Approv approve d
Assets ture up 2023-
ed Cost d cost 2019-20 2020-21 2021-22 2022-23 completio
to COD 24
(As per (as per n cost
FR) RCE)

Asset-I 3772.19 3602.24 2224.21 957.30 205.14 136.75 68.38 0.00 3591.78

Asset- II 1574.97 1357.18 733.10 400.00 170.00 0.00 1303.10

Asset-III 167.16 204.70 118.83 16.47 32.95 24.71 8.24 0.00 201.20
Asset-IV 2079.56 2306.18 1650.96 120.23 215.36 180.35 60.12 0.00 2227.02
Asset- V 2719.00 3195.98 2096.24 174.51 305.40 305.40 87.26 0.00 2968.80
Asset- VI 1352.66 1030.36 776.88 53.08 123.40 30.00 0.00 0.00 983.36
Asset- VII 293.67 157.12 64.98 10.69 39.68 11.34 5.67 0.00 132.36
Asset- VIII 3090.99 2891.09 2275.99 202.58 200.00 0.00 0.00 2678.57
Asset- IX 17371.0 14648.91 12880.95 971.27 560.00 0.00 14412.22
Asset- X 380.75 1349.13 1001.84 187.85 51.62 25.81 1267.12
Asset- XI 2563.94 4046.11 3342.52 48.59 350.00 300.0 4041.11
35365.8
Total 34789.00 27166.50 1732.28 1294.51 2096.26 1122.91 325.81 33806.64
9

Cost Over-run

34. The Petitioner has submitted that the total apportioned approved cost as per the

FR is ₹35365.89 lakh. The total apportioned cost as per the RCE is ₹34789.00 lakh and

the estimated completion cost is ₹33806.64 lakh. Thus, there is no cost over-run with

regard to the instant transmission project.

35. The Petitioner has further submitted that on an individual asset/ element basis,

there is no cost over-run of FR apportioned cost as compared to the estimated

completion cost for Asset-I, Asset-II, Asset-VI, Asset-VII, Asset-VIII, and Asset-IX.

However, there is cost overrun in Asset-III, Asset-IV, Asset-V, Asset-X, and Asset-XI on

same aspect.

36. The Petitioner, vide affidavit dated 7.11.2022, has submitted that there is no cost

over-run of the estimated completion cost as compared to the cost approved in the RCE

for any of the assets.

37. The Petitioner has submitted the details of cost variation with respect to Asset-I,

Asset-II, Asset-IV, Asset-V, Asset-VI, Asset-VII, Asset-VIII, Asset-IX, Asset-X, and

Asset-XI as follows:

Order in Petition No. 9/TT/2023

Page 26 of 104
Reasons for Cost Variation

Comparison of Revised Cost Estimates with the approved cost

The comparison of RCE cost of ₹34789 lakh is carried out against the approved cost

of ₹35883 lakh. The details of the comparison are summarized as follows:

Sr. Variation
Variation on account of:
No. (₹ in lakh) (In %)
(i) Price Variation
DPR to LOA for approved scope
a 1840 5.13
(on competitive bidding while awarding)
Provision presently kept as per contract price
b 990 2.76
variation clause by Regions.
Sub-Total (PV) 2830 7.89
(ii) Variation in quantities of approved Items 1115 3.11
(iii) Addition of Item 464 1.29
(iv) Compensation for Transmission lines (-) 3182 (-) 8.87
Sub-Total (i to iv) 1227 3.42
(v) Other Reasons (IEDC and IDC)
A IEDC (incl. Contingencies) (-) 1597 (-) 4.45
b IDC (-) 724 (-) 2.02
Sub- Total (IEDC & IDC) (-) 2321 (-) 6.47
Grand Total (-) 1094 (-) 3.05

Reasons for variation in Cost Estimate:

It may be seen from the above table that there is a variation of (-) ₹1094 lakh (i.e.

(-) 3.05 %) from the approved cost of ₹35883 lakh.

The head-wise variation in cost is explained as follows:

Price Variation (PV) (Increase of ₹2830 lakh: 7.89 %)

There has been an increase in the cost of the project by ₹2830 lakh on this account,

which works out to 7.89% of the approved cost as per details given as follows:

The Petitioner submitted that an amount of ₹1840 lakh has been incurred from the

time of Investment approval of project till award of various contracts (DPR to LOA)

for approved scope based on prices received as per transparent competitive bidding

and further price variation amount of ₹990 lakh is kept in line with contract price

variation clause.

Order in Petition No. 9/TT/2023

Page 27 of 104
 With regard to PV from DPR to LOA, the Petitioner has submitted that the Contracts

for all packages under this project were awarded only after approval of Competent

Authority as per Detailed Operation Procedure (DoP) to the lowest evaluated and

responsive bidder, on the basis of Competitive Bidding by the Petitioner Company.

Further, it may be submitted that a provision of ₹990 lakh towards price variation

clause as per contract is kept in RCE under the head of price variation by Region.

Variation in quantity of approved items (Net Increase of ₹1115 lakh: 3.11 %)

In the subject RCE, quantities of various Substation and transmission line equipment

and civil works have been considered as per actual site requirement and latest

amendments.

With respect to Substation, there has been an addition of circuit breakers, increase

in quantities of control and relay panels, structures, testing equipment, changes in

various quantities of civil works like PCC, reinforcement steel, and excavation, etc.

w.r.t. DPR envisaged quantities, and also there is a decrease in quantities of GIS

Bus Duct, etc. resulting in net increase in cost of project by ₹528 lakh.

With respect to transmission line, there has been an addition of hot line stringing

works, increase in quantities of conductors, insulators, changes in various quantities

of civil works and also there is a decrease in quantities of hardware fittings and

conductor accessories as per actual site requirement resulting in overall net increase

in project cost by ₹130 lakh.

Further, there is an increase in project cost by ₹457 lakh due to an increase in the

cost of infrastructure works. In the DPR, there was a provision of ₹200 lakh (₹20

lakhs for each Substation) for miscellaneous infrastructure works. In the RCE, an

amount of ₹657 lakh has been provisioned by the site as per actual requirement

Order in Petition No. 9/TT/2023

Page 28 of 104
 against miscellaneous works such as site levelling, boundary wall, internal roads,

Maintenance, T&P-cum-Fitter Room for proper and safe storage, fencing, etc.

Addition of Item (Net increase of ₹464 lakh: 1.29%)

There is an increase in project cost by ₹464 lakh due to the addition of cost pertaining

to 80 MVAR, 765 kV 1-phase shunt Reactor at Ranchi (Bero), which has been

supplied as owner-supplied material (OSM).

Compensation for Transmission Lines (Net decrease of ₹3182 lakh:(-) 8.87 %)

Based on the approved DPR cost, there was a provision of ₹3319 lakh under this

head. However, based on the actual expenditure incurred and the balance anticipated

expenditure, an amount of ₹137 lakh is incurred/likely to be incurred under the head,

resulting in a decrease of ₹3182 lakh in the cost of the project.

Variation in IDC/IEDC (Net decrease of ₹2321 lakh: (-) 6.47%)

Total IDC and IEDC under the project have decreased by ₹2321 lakh in comparison

to the approved cost, which works out to (-) 6.47% as per the following break-up:

Decrease in IEDC

As per the investment approval, the IEDC, including contingencies for the project, was

estimated at ₹ 4020 lakh on total DCO cost (i.e., IEDC @10.75% & contingency @3%

on total DCO cost), whereas in the RCE, it has been considered as per actual

expenditure, which works out to ₹2423 lakh, resulting in an overall decrease of ₹1597

lakh.

Decrease in IDC

Interest During Construction (IDC) for the project as per the Investment Approval was

estimated as ₹2207 lakh, whereas based on actual funds flow, the IDC for the project

in the RCE works out to ₹1483 lakh. Thus, there is a decrease of ₹724 lakh in IDC.

Order in Petition No. 9/TT/2023

Page 29 of 104
38. In response to RoP for the hearing dated 30.10.2023, the Petitioner vide affidavit

dated 16.11.2023 has submitted the information with regard to Asset-V and Asset-XI

and stated that there is a cost overrun vis-à-vis their individual FR apportioned costs.

The reasons submitted for variation in the Asset-wise cost are as follows:

Asset-V (net increase of ₹259.80 lakhs):

PV: increase of ₹266.30 lakhs in ICT & associated switchgear

Foundation works: increase of ₹15.00 lakhs owing to variable site conditions

Asset-XI (net increase of ₹1477.17 lakhs):

PV: increase of ₹1456.08 lakhs in ICT & associated switchgear

Foundation works: increase of ₹98.22 lakhs owing to variable site conditions

39. The Petitioner has submitted that the cost variation was mainly due to actual site

conditions, the awarded rate, and other associated factors which were beyond the

control of the Petitioner.

40. Further, the Petitioner has submitted that the Revised Cost Estimate (RCE) for

the subject project has also been submitted vide affidavit dated 7.11.2022, wherein

detailed justification at the project level has also been provided for other transmission

assets in case of cost overrun/ variation.

41. We have considered the submissions made by the Petitioner and find that there

is a cost overrun in Asset-III, Asset-IV, Asset-V, Asset-X, and Asset-XI. However, as

compared to the FR cost of ₹35365.89 lakh, the estimated completion cost of ₹33806.64

lakh is lower by ₹1559.25 lakh, including ACE as mentioned above, which is within the

FR apportioned approved cost. Therefore, there is no cost overrun for the project as a

whole.

42. The Petitioner has submitted that the capital cost varied due to variation in the

quantity of approved items like circuit breakers, an increase in the quantities of control,

Order in Petition No. 9/TT/2023

Page 30 of 104
and relay panels, etc. It is observed that the Petitioner has not submitted asset-wise

approved items vs actual items installed, and the reasons for the variation of Substation

items. Therefore, the Petitioner is directed to submit the asset-wise details along with

the variation between the awarded cost and completion cost at the time of true-up with

valid justification at the time of truing up. It is noted that the petitioner has claimed the

capital cost of ₹464 lakh due to the addition of cost pertaining to an 80 MVAR, 765 kV

1-phase shunt Reactor at Ranchi (Bero), which has been supplied as owner-supplied

material (OSM). The petitioner is directed to clarify the reasons for claiming the same

in the instant petition instead of claiming under self-insurance reserves at the time of

truing-up.

43. It is further observed that the cost variation is primarily on account of variation in

estimated prices and final competitive prices. The asset-wise completion cost is within

the FR apportioned approved cost for Asset-I, Asset-II, Asset-VI, Asset-VII, Asset-VIII.,

and Asset-IX. The Petitioner has submitted an RCE vide affidavit dated 7.11.2022 for

Asset-III, Asset-IV, Asset-V, Asset-X, and Asset-XI. Against the total RCE approved

cost of ₹34789.00 lakh, the estimated completed cost of ₹33806.64 lakh is within the

approved cost. Furthermore, there is no cost overrun with respect to any transmission

asset in the instant project as well. Accordingly, the cost variation is allowed. However,

as discussed above, Asset-III, Asset-VII, and Asset-IX have not been considered for

tariff in this order

Time overrun
44. As per the IA dated 2.11.2017, the transmission project was scheduled to be

commissioned within 30 months from the date of the IA which works out to be 1.5.2020.

However, the details of the actual commissioning of the transmission assets are as

follows:

Order in Petition No. 9/TT/2023

Page 31 of 104
 Assets SCOD COD Time over-run
Asset-I 6.9.2019 NIL
Asset-II 1.10.2019 NIL
Asset-IV 31.12.2019 NIL
Asset-V 1.1.2020 NIL
1.5.2020
Asset-VI 13.1.2020 NIL
Asset-VIII 31.7.2020 91 days
Asset-X 2.4.2021 336 days
Asset-XI 19.2.2022 659 days
45. There is no delay in the commissioning of Asset-I, Asset-II, Asset-III, Asset-IV,

Asset-V, and Asset-VI. However, there is a delay in the commissioning of the Asset-VIII

by 91 days, Asset-X by 336 days, and Asset-XI by 659 days.

46. The detailed reasons submitted by the Petitioner for time overrun in case of the

transmission of Asset-VIII, Asset-X, and Asset-XI are as follows:

Asset-VIII:

Unseasonal Rainfall:

47. The unseasonal and unprecedented rainfall in and around Maithon (under

Dhanbad District of Jharkhand) during the lean rainfall season of March-April-May 2020

led to the deferment of works associated with subject Asset-VIII.

48. The Petitioner has further submitted that this period of March-May is also defined

as Pre-Monsoon Season by the Meteorological dept. witness large excess rainfall as

compared to the Long Period Average (LPA) in the Maithon Area (Dhanbad). Cyclonic

activity in the Bay of Bengal and the development of low pressure over areas of

Jharkhand, Odisha, and West Bengal.

49. The Petitioner has further submitted that most of the works associated with ICT

at Maithon were completed and only testing and commissioning (T&C) related activities

were pending by February 2020. The T&C related activities were planned for the period

March-April 2020, keeping in mind the lean or minimal rainfall pattern in and around

Maithon during this pre-monsoon period.

Order in Petition No. 9/TT/2023

Page 32 of 104
50. The Petitioner has further submitted that unprecedented and continuous rainfall

over these months affected the execution of completion of Testing and commissioning

related works and compliances as the heavy rains/thunderstorm conditions not ideal for

working in electrically charged switchyard of 400/220kV Maithon sub-station apart from

issues related to hindrances caused by water logging, restricted movement of

machinery, swift mobilisation/ re-mobilisation of man and material, etc.

51. The Petitioner has further submitted that the Commission, vide its order dated

29.4.2011, had approved the Model Transmission Service Agreement (Model TSA).

52. Clause 14.2.1 of the said Model TSA defines “force majeure” as follows:

“14.0 Force Majeure

……………………..
14.2.1 Natural Force Majeure Events (a) Act of God, including, but not limited to drought,
fire and explosion (to the extent originating from a source external to the Site),
earthquake, volcanic eruption, landslide, flood, cyclone, typhoon, tornado, or
exceptionally adverse weather conditions which are in excess of the statistical measures
for the last hundred (100) years;”
53. The Petitioner has further submitted that, as per clause 14.2.1 of the Model TSA,

exceptional adverse weather conditions which are in excess of the statistical measures

for the last hundred (100) years can be considered as force majeure, and in such cases,

any delays will not be attributable to the Petitioner.

54. The Petitioner has further submitted that in the month of March 2020, the total

rainfall recorded was about 69 mm, which was 247% of normal rainfall. Similarly, the

actual rainfalls during April-May 2020 were also above the normal pattern and were in

excess. The same is also testified by the Yearly Weather Report 2020 for the State of

Jharkhand issued by IMD, Meteorological Centre at Ranchi. There was excessive

rainfall in the month of March 2020 in Jharkhand, with 76% excess in the District of

Dhanbad (Maithon) when calculated cumulatively for the period of March-May 2020.

55. The Petitioner has submitted that works related to T&C were affected largely due

to unprecedented rains during the lean rainfall period, due to unseasonal and

Order in Petition No. 9/TT/2023

Page 33 of 104
unprecedented rains as compared to the LPA of the region, which were unforeseen and

uncontrollable on the part of the Petitioner. However, the Petitioner had put in their best

efforts to bring back the project as close as possible to the scheduled timeline, only to

run into Covid-19-related restrictions from March 2020 to July 2020.

COVID-19:

56. COVID-19 was identified by the WHO as a Global Pandemic and a force majeure

event across all segments/ verticals of the global business/ industry. This situation, by

definition, was of an unforeseen/unplanned nature. As such, the global business and

production took a multiple-fold hit.

57. The projects undertaken by the Petitioner were no exception, facing a multitude

of challenges as they navigate through largely uncharted territory with projects and

supply lines experiencing highly unique and mounting risks leading to delays in

execution from the effects of Covid-19.

Nationwide lockdown in India in various phases owing to the COVID-19 pandemic:

• Phase 1: 25 March 2020 – 14 April 2020 (21 days)

• Phase 2: 15 April 2020 – 3 May 2020 (19 days)

• Phase 3: 4 May 2020 – 17 May 2020 (14 days)

• Phase 4: 18 May 2020 – 31 May 2020 (14 days)

Unlock:

• Unlock 1.0: 01 June 2020 – 30 June 2020 (30 days)

• Unlock 2.0: 01 July 2020 – 31 July 2020 (31 days)

• Unlock 2.0: 01 August 2020 – 31 August 2020 (31 days)

The lockdown restricted people from stepping out of their homes across the country. All

transport services–road, air, and rail–were suspended, with exceptions for

transportation of essential goods, fire, police, and emergency services. Educational

Order in Petition No. 9/TT/2023

Page 34 of 104
institutions, industrial establishments, and hospitality services were also suspended.

Services such as food shops, banks and ATMs, petrol pumps, other essentials, and

their manufacturing were exempted. The Home Ministry stated that anyone who fails to

follow the restrictions can face up to a year in jail. The Government (Centre & State)

had locked down all the cities and restricted the movement from one place to another.

The movement restriction affected the critical supply chain, transportation, worker/

labour absenteeism due to illness/quarantine/ migration, etc, which resulted in a

complete halt of ongoing projects. The lockdown imposition was a voluntary step back

of the construction workers, which was also unforeseen and unavoidable. The sites

were either closed or access was largely restricted as a result of measures to contain

the COVID-19 outbreak. The contractors thus were not able to carry out the works as a

result of action by governments to prevent the spread of the outbreak. Specific Covid-

19-related challenges: supplier-delivery issues, worker absenteeism due to illness,

delayed issuance of permits, travel restrictions, and loss time or inefficiencies due to

the need to practice social distancing on the job site are just a few of the issues that had

scheduling consequences. Also, the lack of engineering and technical support and

supply chain disruptions were the major factors impacting the project schedule and

implementations. Thus, the commissioning of various projects, including the subject

project, faced delays due to the squeezing of supply lines and construction activities.

According to the Petitioner, when construction resumed, additional delays and

inefficiencies further pushed back completion dates. The construction could not be

started immediately. The biggest hurdle is that the supply chain has not been fully

restored. Besides, considering the scenario that if anybody gets infected on the

construction site after work has started, the area would be sealed and all related people

will be quarantined for 14-28 days. Construction pace plummeted or came to a grinding

halt. With the halting of various line construction activities, the work was at a standstill

Order in Petition No. 9/TT/2023

Page 35 of 104
for almost 4-5 months (i.e., from the end of March 2020 to July 2020) and gradually

gathered speed in line with Government directives. The above-mentioned Force

Majeure issues, which led to disruption in the global supply chain and project execution

due to the outbreak of Covid-19 and imposition of consequential lockdown in India.

Further, the Petitioner has submitted that the Ministry of Power (MoP), Government of

India vide letter dated 27.7.2020 had provided an extension of 5 month with respect to

SCOD for inter-state transmission project (under construction as on 25.3.2020 and

SCOD not prior to 25.3.2020) owing to unforeseen circumstances forced by the Covid-

19 pandemic.

Asset-X:

The detailed reasons submitted by the Petitioner for time overrun in the case of the

transmission Asset-X are more or less similar to those submitted for Asset-VIII.

Therefore, the same is not repeated here for the sake of brevity.

Asset-XI

In response to RoP for the hearing dated 30.10.2023, the Petitioner vide affidavit dated

16.11.2023 has submitted the information with regard to Asset-XI and submitted the

reasons for delay in commissioning as follows:

Transportation Constraints

The Petitioner has submitted that 100 MVA ICT could be dispatched from its factory

location (Vadodara) by September 2019 (27.9.2019) for transit towards its eventual

location at Rangpo GIS Station. It is submitted that the ICT was ready for transit by July

2019; however, due to severe rainfall and landslides, the route in hilly areas in Sikkim

was severely affected. Landslides, being a natural calamity, are a force majeure

situation, and time was lost for the repair of the roads and bridges that fell on the route.

Therefore, the dispatch of ICT was held up for this period of 3 months from July to

September 2019. The Petitioner has further submitted that on the way to Rangpo GIS

Order in Petition No. 9/TT/2023

Page 36 of 104
from Siliguri, the route (NH-10) traverses through a few bridges over the river Teesta

(and its distributaries) in the mountainous terrain in the State of Sikkim. On one such

bridge, namely the Rangpo Check post (entry) Bridge (ICT reached this check post on

27.10.2019), a transportation issue occurred as there was a load restriction on the

movement of cargo over this bridge, on account of which the 100 MVA ICT could not

be transported beyond this point. The Petitioner has submitted that, as per the orders

of the Rangpo Administration, the incessant rains had taken a severe toll and washed

away additional support pillars and foundations. Thus, load restrictions were introduced

as a safety precaution till the re-strengthening of the same. The Circular of Sikkim

Govt.’s Rangpo Administration has been filed. Further, it is submitted that the route

survey was carried out in 2018 and finalized by December 2018. However, the

information in this circular restricting allowable load passage was passed on by the

relevant administration in October 2019. Subsequently, as an alternate measure to

overcome this hurdle, owing to time constraints, it was decided to build a temporary

shallow bridge-cum-road over the river-bed to transport the ICT beyond this point.

However, to construct this temporary passage over the river bed, another issue came

up, i.e., high water level/ severe water current due to heavy rains and high hydro

season. Thus, the matter could be taken up at ground level only after high hydro season

had ceased, i.e., in the Winter Season (December 2019). After the

construction/completion of this temporary road/passage/bridge, the ICT could move

beyond this check post in the last week of December 2019 and eventually reach Rangpo

GIS on 21.1.2020. Thus, considerable time from October 2019 to December 2019, i.e.,

2 months, was lost in this force majeure situation.

Order in Petition No. 9/TT/2023

Page 37 of 104
Worldwide Covid-19 pandemic-Wave-01 (March 2020 – June 2020)

The reasons explained by the Petitioner for the delay in the execution of the Asset-XI

are more-or-less similar to the reasons explained for the delay in the execution of Asset-

VIII. Therefore, the same is not repeated here for the sake of brevity.

Delay due to Non-availability of requisite Shutdowns:

The Petitioner has submitted that when it approached the concerned authorities /forums

for availing the requisite shutdowns, the requests were denied for a very long time owing

to various system/ grid constraints. The transmission asset had to be commissioned in

the existing 400/220/132 Rangpo GIS. Therefore, it was a necessity to obtain multiple

shutdowns for terminal and pre-commissioning works. The following table shows

shutdown applied and not-approved by the concerned authorities:

S.
S/D applied S/D Approved Remarks
No.
(i)Due to High hydro period.

(ii) Also, due to reconductoring works

of Rangpo – Siliguri 400kV D/C line,
1 April 2020 October 2020 Not approved Not approved
so S/D could be given only upon
return of this line to operation.

Period affected: 180 days

No S/D Accorded By ERLDC for
docking in 220KV Bus-1.

2 3.12.2020 8.12.2020 Not approved Not approved Later provided from 08.12.2020 to
10.12.2020

Period affected: 5 days

No S/D Provided By ERLDC for
docking in 220KV Bus-2.

3 11.12.2020 16.12.2020 Not approved Not approved Later provided from 16.12.2020 to
18.12.2020

Period affected: 6 days

S/D of 132KV Bus-3 & 4 was not
provided by ERLDC for the docking of
the conductor in the 132KV site
interface module.
4 19.12.2020 23.12.2020 Not approved Not approved
Later provided from 24.12.2020 to
29.12.2020

Period affected: 5 days

Subject to consent from Sikkim &
5 8.1.2021 9.1.2021 Not approved Not approved generators based on real-time grid
conditions.

Order in Petition No. 9/TT/2023

Page 38 of 104
S.
S/D applied S/D Approved Remarks
No.
Maybe allowed only in the NIL
generation period, so the power to
Gangtok is not affected

Reference 174th OCC

Period affected: 2 days

S/D was not provided by ERLDC for
220KV Bus-1 & 2 for HV testing.

6 24.1.2021 26.1.2021 Not approved Not approved

Later provided from 26.1.2021 to
28.1.2021

Period affected: 3 days

Not provided by ERLDC due to
system constraints.

Was required for S/D of 132KV Bus-1

7 10.2.2021 24.2.2021 Not approved Not approved & 2 (for connecting conductor in
interface module, and 220KV Bus-1
&2

Period affected: 15 days

S/D not provided by ERLDC from
13.6.2021 to 13.7.2021 for
rectification of 220KV side bay-214
Bus earth switch.
8 13.6.2021 13.7.2021 Not approved Not approved
Later provided from 14.7.2021 to
22.7.2021

Period affected: 30 days

High Hydro period. Subject to consent
from Sikkim & generators based on
real-time grid conditions.
9 1.7.2021 12.7.2021 Not approved Not approved
Reference 180th OCC

Period affected: overlapping above

High Hydro period.
S/D not provided by ERLDC
10 24.7.2021 2.11.2021 Not approved Not approved
Period affected: 100 days
High Hydro period. Subject to consent
from Sikkim & generators based on
real-time grid conditions.
11 25.7.2021 26.7.2021 Not approved Not approved
Reference 180th OCC

Period affected: overlapping above

Deferred, to be availed after High
Hydro period. Subject to consent from
Sikkim & generators based on real
time grid conditions.
12 13.8.2021 14.8.2021 Not approved Not approved
Reference 181st OCC

Period affected: overlapping above

Applied after high hydro period

Order in Petition No. 9/TT/2023

Page 39 of 104
S.
S/D applied S/D Approved Remarks
No.
Subject to consent from Sikkim &
generators based on real time grid
conditions.
13 13.11.2021 13.11.2021 Not approved Not approved
Reference 184th OCC

Period affected: 1 days

Subject to consent from Sikkim based
on real time grid conditions.
14 17.12.2021 17.12.2021 Not approved Not approved
Reference 185th OCC

Period affected: 1 days

Due to the above facts and circumstances, the commissioning of Asset-XI was delayed

for about 348 days. Continuous shutdown on a regular basis was allowed from

18.12.2021 onwards, and eventually, the transmission asset was commissioned on

19.2.2022.

Cause(s) for Shutdown Denial:

The Petitioner has submitted that the shutdowns were denied because of various

reasons that include high and peak hydro, monsoon season with heavy rains, and re-

conductoring works of 400kV D/C Rangpo-Siliguri line, which is the Asset-IX of the

instant petition. The Petitioner has further submitted that 400/220/132 KV Rangpo is

one of the most important and critical substations of Eastern region-II. It is the gateway

between all hydel generations of Sikkim to the rest of India. This Station has either direct

or indirect connectivity with Teesta-III, Teesta-V, Rangit, Dikchu, Tashiding, JLHEP,

Rangnichu, and Chuzachen. Total 5 nos. 400/220 KV 315 MVA (3*105MVA) ICT and

four nos. 220/132KV 100MVA ICTs are present at Rangpo. During peak hydropower

generation, all these ICTs are considerably loaded.

58. In response to RoP for the hearing dated 30.10.2023, the Petitioner vide affidavit

dated 16.11.2023 has submitted the information with regard to the status of the project

as on March 2020 as follows:

Order in Petition No. 9/TT/2023

Page 40 of 104
 Asset-VIII SCOD: 1.5.2020 COD: 31.7.2020
Work completed prior to Balance work affected due
Activity Covid -19 pandemic (i.e., to the onset of Covid-19
before March 2020) (i.e., after March 2020)
LOA completed -
Supply completed -
Foundation & civil Works completed -
Erection completed -
Balance of T&C works
Testing & Commissioning Majorly completed
completed
*status are broadly indicative and not quantitative.

Asset-X SCOD: 1.5.2020 COD: 2.4.2021

Work completed prior to
Balance work affected due
Activity Covid -19 pandemic (i.e.,
to the onset of Covid-19
before March 2020) (i.e. after March 2020)
LOA completed -
Supply completed -
Balance was completed
Foundation & Civil Works Majorly completed
shortly afterwards
Works were in progress, Balance the major portion
Erection
minor portion completed completed afterwards
Testing & Commissioning Pending Completed in March 2021
*status are broadly indicative and not quantitative.

Asset-XI SCOD: 1.5.2020 COD: 19.2.2022

Work completed prior to Balance work affected due
Activity Covid -19 pandemic (i.e. to the onset of Covid-19
before Mar’2020) (i.e., after Mar’2020)
LOA completed -
Supply completed -
Works were in progress, Balance the major portion
Foundation & Civil Works
minor portion completed completed afterwards
Works were in progress, Balance the major portion
Erection
minor portion completed completed afterwards
Testing & Commissioning Pending Completed in Feb 2022
*status are broadly indicative and not quantitative.

59. Further, in response to RoP for the hearing dated 15.12.2023, the Petitioner vide

affidavit dated 10.1.2024 has submitted reasons for delay in the commissioning of

Asset-VIII, Asset-IX, Asset-X, and Asset-XI as follows:

Sr. Reason for the Documentar

Asset SCOD COD Delay
No Delay y Evidence
• Unprecedented Affidavit
Asset-VIII: 400/132 kV, Rainfall
1. 2.5.2020 31.7.2020 92 Days dated
500 MVA ICT alongwith • Covid-19
16.11.2023
Related issues

Order in Petition No. 9/TT/2023

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Sr. Reason for the Documentar
Asset SCOD COD Delay
No Delay y Evidence
associated bays at as a Reply
Maithon Substation. to RoP for
Asset-X: 765 kV, 80 hearing
MVAR (single phase) • Unprecedented dated
337 Rainfall
2. Spare Reactor Unit at 2.4.2021 30.10.2023
Days Covid-19
New Ranchi
Related
Substation.
• Unprecedented
Rainfall and
Asset-XI: 200/132 kV, Transportation
100 MVA ICT along with Constraints
associated bays at 660 • Weak Bridges
3. 19.2.2022 • Landslide
Rangpo GIS Days
• Covid-19
Substation. Related Issues
• Non-availability
due to
Shutdown
60. Further, the Petitioner has submitted substantiating judgments/orders in support

of delay due to time overrun issues as follows:

a. Time overrun condoned due to unprecedented Rainfall:

i. NTPC Tamil Nadu Energy Company Ltd. v. AP Transmission

Corporation: 2016 SCC Online CERC 46.
ii. NTPC Limited v. Madhya Pradesh Power Management Company
Limited: 2015 SCC Online CERC 78.
iii. NTPC Tamil Nadu Energy Company Ltd. v. Transmission Corporation
of Andhra Pradesh Ltd.: 2017 SCC Online CERC 97.
iv. Kanti Bijlee Utpadan Nigam Limited v. Bihar State Power Holding
Company Ltd. and Ors.: 2019 SCC Online CERC 184.
v. Power Grid Corporation of India Limited v. Assam Electricity Grid
Corporation Limited and Ors.: 2023 SCC Online CERC 5.
vi. NLC Tamil Nadu Power Limited v. Transmission Corporation of
Andhra Pradesh: 2017 SCC Online CERC 91.
b. Time overrun condoned due to Covid-19:

i. NTPC Limited v. Uttar Pradesh Power Corporation Limited: Petition

No. 3/GT/2021.
ii. Power Grid Corporation of India Limited v. Tamil Nadu Generation and
Distribution Corporation Limited: 2022 SCC Online CERC 328.
c. Time Overrun condoned due to Shutdown Approval:

Order in Petition No. 9/TT/2023

Page 42 of 104
 i. Power Grid Corporation of India v. Bihar State Power (Holding)
Company Limited and Ors.: 2023 SCC Online CERC 79.
ii. Power Grid Corporation of India v. Bihar State Power (Holding)
Company Limited and Ors.: 2022 SCC Online CERC 416.
d. Time Overrun condoned due to Weak Bridges and Landslides

i. Teesta Urja Limited v. PTC India Limited and Ors.: 2020 SCC Online
CERC 145.
ii. Power Grid Corporation of India Limited v. Assam Electricity Grid
Corporation Limited and Ors.: 2018 SCC Online CERC 229.

Analysis and decision:

61. We have considered the submissions made by the Petitioner. We have also gone

through the documentary evidence placed on record by the Petitioner to justify the time

overrun. The transmission assets were scheduled to be commissioned within 30 months

from the date of IA, i.e., 2.11.2017. Accordingly, the SCOD works out to 1.5.2020

against which Asset-I, Asset-II, Asset-IV, Asset-V, Asset-VI, Asset-VIII, Asset-X, and

Asset-XI have been put to commercial operation on 6.9.2019, 1.10.2019, 31.12.2019,

1.1.2020, 13.1.2020, 31.7.2020, 2.4.2021, and 19.2.2022, respectively. Thus, there is

no delay in the case of Asset-I, Asset-II, Asset-IV, Asset-V, and Asset-VI. However,

there is a time overrun of 91 days, 336 days, and 659 days in respect of Asset-VIII,

Asset-X, and Asset-XI, respectively.

62. The Petitioner has submitted that the time overrun in the case of all the

transmission assets is due to COVID-19. The Petitioner has further submitted that in

the case of Asset-VIII and Asset-X, it was due to unseasonal rainfall. Asset-XI got

delayed due to the non-availability of the requisite shutdowns. Furthermore, Asset-XI

was delayed due to problems in the transportation of the Asset to Rangpo and

unprecedented rainfall during the lean season.

Order in Petition No. 9/TT/2023

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63. We have gone through the submissions made by the Petitioner in the instant

petition and the information filed vide affidavits dated 16.11.2023 and 10.1.2024 in

response to the RoPs for hearing dated 30.10.2023 and 15.12.2023, respectively.

64. With respect to Asset-VIII, Asset-X, and Asset-XI, the Petitioner has submitted

that the Ministry of Power vide letter dated 27.7.2020 has provided an extension of 5

months in respect to SCOD for the inter-State transmission project (under construction

as on 25.3.2020 and SCOD not prior to 25.3.2020) owing to unforeseen circumstances

forced by the COVID-19 pandemic. The relevant portion of the letter dated 27.7.2020 is

as follows:

“Sub: Extension to TSP/Transmission Licensees for completion of under construction

inter-State transmission projects
Sir,
I am directed to state that transmission utilities have pointed out that construction
activities at various transmission project sites have been severely affected by the
nationwide lockdown measures announced since 25th march, 2020 to contain outbreak
of COVID-19 and have requested for extension of Scheduled Commercial Operation
(SCOD) to mitigate the issues of disruption in supply chains and manpower, caused due
to outbreak of COVID19 pandemic.
2. It has been, therefore, decided that; i. All inter-state transmission projects, which were
under construction as on date of lock-down i.e. 25th March 2020, shall get an extension
of five months in respect of SCOD
ii. This order shall not apply to those projects, whose SCOD date was prior to 25th
March 2020
iii. Start date of Long Term Access granted to a generator by CTU based on completion
of a transmission line, whose SCOD is extended by 5 months due to COVID-19 as
mentioned above at point(i), shall also be extended by 5 months.”
65. In the aforesaid letter, MoP, taking into account, the construction activities at the

various transmission project sites having been severely affected by the nationwide

lockdown measures announced since 25.3.2020 to contain the outbreak of Covid-19

and the request of the transmission utilities for extension of SCOD to mitigate the issues

of disruption in supply chains and manpower caused due to outbreak of Covid-19,

decided that all inter-State transmission projects which were under construction as on

date of lockdown, i.e., 25.3.2020 shall get an extension of 5 months in respect of SCOD

provided the SCOD of these projects was post 25.3.2020. It is also relevant to note that

Order in Petition No. 9/TT/2023

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the above letter of the MoP is in nature of generic order/blanket order applicable to all

the transmission licensees whose projects fall under the criteria specified therein and

as such does not require the individual licensee to substantiate/ make out its case for

availing the dispensation provided under the said order. In the present case, the

transmission project of the Petitioner was under construction stage as on the date of

lockdown, i.e., 25.3.2020 and the SCOD of the transmission project was 1.5.2020, i.e.,

post 25.3.2020 and, therefore, the dispensation provided by the MoP vide its letter dated

27.7.2020 is applicable in the instant case. Accordingly, the SCOD of the transmission

project is considered as of 1.10.2020.

66. As per the I.A., the SCOD of the transmission project is 1.5.2020. In terms of the

above letter dated 27.7.2020, the revised SCOD of the transmission project is

considered as 1.10.2020. However, there is a time overrun of 183 days and 506 days

in declaring the commercial operation of the Asset-IX and Asset-XI, respectively, in

terms of the revised SCOD.

Revised SCOD as per

SCOD as Time Over-run as per
Asset MoP letter dated COD
per IA Revised SCOD
27.7.2020
Asset-I 6.9.2019 NIL
Asset-II 1.10.2019 NIL
Asset-IV 31.12.2019 NIL
Asset-V 1.1.2020 NIL
1.5.2020 1.10.2020
Asset-VI 13.1.2020 NIL
Asset-VIII 31.7.2020 NIL
Asset-X 2.4.2021 183 days
Asset-XI 19.2.2022 506 days
Asset-X:

67. With respect to Asset-X, the Petitioner has submitted the reasons for delay as

unprecedented rainfall during the lean season in addition to COVID-19. The Petitioner

has submitted that the time period from October 2019 to March 2020, i.e., about 5

months, is impacted on account of unprecedented rainfall during the lean period. As the

COD of the Asset is revised to 1.10.2020, we examine the reasons given by the

Order in Petition No. 9/TT/2023

Page 45 of 104
Petitioner for the time overrun beyond the revised SCOD of 1.10.2020, as we do not

find any reason to examine the time overrun before the revised SCOD. The Petitioner

has not submitted any further reasons for delay after 1.10.2020. It is further noted that

Asset-X is a spare Reactor unit at New Ranchi Sub-station. As per the IA dated

2.11.2017, the transmission asset is scheduled to be commissioned within 30 months,

i.e., by 1.5.2020. As per Form-5A, it is noted that the Petitioner had awarded the work

on 13.12.2017 for the supply of a spare Reactor from TBEA. It seems that the

transportation of the Reactor leads to delay in the commissioning of the transmission

asset. The Petitioner has not submitted when the Reactor reached the site after the

award of the project on 13.12.2017. As per the petitioners' affidavit dated 16.03.2023,

as tabulated below, supply has already been completed on 1.05.2020.

Asset-X SCOD: 1.5.2020 COD: 2.4.2021

Work completed prior to Balance work affected due
Activity Covid -19 pandemic (i.e., to the onset of Covid-19
before March 2020) (i.e. after March 2020)
LOA completed -
Supply completed -
Balance was completed
Foundation & Civil Works Majorly completed
shortly afterwards
Works were in progress, a Balance the major portion
Erection
minor portion completed completed afterwards
Testing & Commissioning Pending Completed in March 2021

The Petitioner is directed to submit the reasons for the delay from 1.10.2020 to

2.4.2021, and the same will be reviewed at the time of truing-up. The Petitioner further

directed to submit the details of transportation, the details of the Reactor at the time of

truing-up. We are not inclined to condone the total delay of 183 days beyond 1.10.2020,

and the same will be reviewed at the time of truing-up based on the justification for the

period 1.10.2020 to 2.4.2021

Order in Petition No. 9/TT/2023

Page 46 of 104
Asset-XI:

68. As per the I.A. dated 2.11.2017, the SCOD of the transmission assets was

1.5.2020. Asset-XI was put into commercial operation on 19.2.2022. Thus, there is a

time overrun of 659 days in the case of Asset-XI. The Petitioner has submitted that the

main reasons for delay are (i) Transportation constraints (July 2019 to September 2019

and October 2019 to December 2019), about 5 months, unprecedented rainfall during

lean seasons, and Covid-19 related lockdown and restrictions, non-availability of

requisite shutdown.

69. As stated above, we have already revised the SCOD of Asset-XI as of 1.10.2020,

and it has been put into commercial operation on 19.2.2022. Thus, the time overrun in

the case of Asset-XI, as per the revised SCOD, is 506 days. Therefore, we examine the

reasons given by the Petitioner for the time overrun beyond the revised SCOD of

1.10.2020, as we do not find any reason to examine the time overrun before the revised

SCOD.

70. The Petitioner has submitted that the project was also affected by the second

wave of COVID-19, as the lockdown was again imposed by the GoI, and several

restrictions were imposed by the State Government on the movement of personnel and

transportation of equipment. Further, it was submitted that severe restrictions were

imposed between 1.4.2021 and 30.6.2021 on the movement of men and materials. Due

to the severity of the second COVID-19 wave, all the manufacturing (supply chains) and

erection activities at the site were badly affected.

71. We have considered the submissions of the Petitioner. The relevant portion of

the letter dated 12.6.2021 is as follows:

“Sub: Extension to TSP/Transmission Licensees for completion of under construction inter

State transmission projects – reg.
Sir,

Order in Petition No. 9/TT/2023

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 I am directed to state that transmission utilities have approached this Ministry stating
that construction activity at various transmission projects sites have been severely
affected by the current second wave of COVID-19 pandemic and various measures
taken by State/UT Governments to contain the pandemic; such as night curfew,
imposition of section 144, weekend lockdown and complete lockdown. In this regard
they have requested for extension of Scheduled Commercial Operation Date (SCOD)
for the undergoing Transmission projects to mitigate the issues of disruption in supply
chains and manpower, caused due to COVID-19 pandemic.
2. The matter has been examined in the Ministry and it has been noted that unlike last
year complete lock-down in the entire country, this time different States/UTs have
ordered lock-down in their State/UTs as per their own assessments. Therefore, after
due consideration, it has been decided that;
i. All inter-state transmission projects, which are under construction with SCOD coming
after 01 April 2021 shall get an extension of three (3) months in respect of their SCOD;
ii. The commencement date of Long-Term Access (LTA) to a generator by CTU based on
completion of a transmission line, whose SCOD is extended by three (3) months due to
COVID19 as mentioned above at point(i), shall also be extended by three (3) months.
3. This issue with the approval of Competent Authority.”

72. As per the above, it is observed that extension of three months shall be granted

only when SCOD is after 1.4.2021. In the instant case, the revised SCOD of the

transmission asset is 1.10.2020; therefore, the extension of 3 months is not applicable

in the instant case. It is further observed that the Petitioner had applied for a shutdown

in the month of April, 2020, which means that the Petitioner had completed all erection

works and only testing and commissioning were pending. It is also observed that the

Petitioner submitted application for energisation of 100 MVA ICT, 220/132 kV GIS bay

at PGCIL on 17.12.2020 and the CEA vide letter dated 12th March, 2021 had granted

CEA Energisation Certificate for 100 MVA ICT, the second wave of Covid-19 did not

impact the commissioning of the instant transmission asset. Based on the above

discussion, we are of the view that the Second Wave of COVID-19 did not impact the

commissioning of the instant transmission asset.

73. The petitioner has submitted that the petitioner has sought a shutdown from April

2020 to October 2020, which was denied due to the high hydro period and also due to

reconductoring works of the Rangpo-Siliguri 400 kV D/C line. The shutdown was not

approved, due to which the time period of 180 days was impacted. We have gone

Order in Petition No. 9/TT/2023

Page 48 of 104
through the submissions of the petitioner. The petitioner has not placed any document/

OCC minutes for the denial of shutdown during this period. It is further noted that the

SCOD of the asset is revised to 1.10.2020, so the time overrun sought from April2020

to October 2020 is subsumed in this period.

74. The Petitioner has submitted that it had applied for a shutdown from 3.12.2020

to 17.12.2021, on account of getting approval for the shutdown, which caused a delay

of 168 days.

75. Regulation 22(1) of the 2019 Tariff Regulations is extracted as under:

“(2) The “uncontrollable factors” shall include but shall not be limited to the following:
a. Force Majeure events;
b. Change in law; and
c. Land acquisition except where the delay is attributable to the generating company or
the transmission licensee.”

76. Regulation 3(1) of the 2019 Tariff Regulations is extracted as under:

“(10) ‘Change in Law’ means occurrence of any of the following events:

(a) enactment, bringing into effect or promulgation of any new Indian law; or
(b) adoption, amendment, modification, repeal or re-enactment of any existing Indian
law; or
(c) change in interpretation or application of any Indian law by a competent court,
Tribunal or Indian Governmental Instrumentality which is the final authority under law for
such interpretation or application; or
(d) change by any competent statutory authority in any condition or covenant of any
consent or clearances or approval or licence available or obtained for the project; or
(e) coming into force or change in any bilateral or multilateral agreement or treaty
between the Government of India and any other Sovereign Government having
implication for the generating station or the transmission system regulated under these
regulations.”

77. Regulation 3(25) of the 2019 Tariff Regulations is extracted as under;

“(25) ‘Force Majeure’ for the purpose of these regulations means the events or
circumstances or combination of events or circumstances including those stated below
which partly or fully prevents the generating company or transmission licensee to
complete the project within the time specified in the Investment Approval, and only if
such events or circumstances are not within the control of the generating company or
transmission licensee and could not have been avoided, had the generating company
or transmission licensee taken reasonable care or complied with prudent utility practices:
(a) Act of God including lightning, drought, fire and explosion, earthquake, volcanic
eruption, landslide, flood, cyclone, typhoon, tornado, geological surprises, or
exceptionally adverse weather conditions which are in excess of the statistical measures
for the last hundred years; or

Order in Petition No. 9/TT/2023

Page 49 of 104
 (b) Any act of war, invasion, armed conflict or act of foreign enemy, blockade, embargo,
revolution, riot, insurrection, terrorist or military action; or
(c) Industry wide strikes and labour disturbances having a nationwide impact in India; or
(d) Delay in obtaining statutory approval for the project except where the delay is
attributable to project developer;”

78. As per the above, it is noted that Regulations 22(1), 3(10), and 3(25) of the 2019

Tariff Regulations collectively define "uncontrollable factors" as circumstances beyond

the control of the generating company or transmission licensee, including Force

Majeure events, Change in Law, and delays in land acquisition not attributable to the

developer. "Change in Law" encompasses the enactment, amendment, repeal, or

reinterpretation of Indian laws or regulations, changes in licensing conditions, and

international treaties affecting the project. "Force Majeure" refers to extraordinary

events such as natural disasters, war, terrorism, nationwide strikes, or delays in

statutory approvals (unless caused by the developer), which hinder timely project

execution despite reasonable care and adherence to prudent utility practices. We are

of the view that shutdown is a planned activity, and obtaining shutdown approval does

not fall under change in law and Force majeure events. Therefore, we are not inclined

to condone the time period of 168 days on account shutdown.

79. The petitioner has submitted that the time period(s) from 3.12.2020 to 8.12.2020

(05 days), 11.12.2020 to 16.12.2020 (06 days), 19.12.2020 to 23.12.2020 (05 days),

24.01.2021 to 26.01.2021 (03 days), 13.06.2021 to 13.07.2021 (30 days) totalling about

49 days was impacted on account of granting shutdown approval by ERLDC. We have

gone through the letters issued by ERLDC and based on the request of the petitioner,

ERLDC has granted shutdown approval. Therefore, we are of the view that the delay

on account of shutdown approval by ERLDC has no merit and the same is not

condoned.

80. The Petitioner has submitted minutes of the 174th OCC, 180th OCC, 181st

OCC,184th OCC and 185th OCC. As per the annexure of the various OCC minutes, it

Order in Petition No. 9/TT/2023

Page 50 of 104
is observed that the petitioner applied for a shutdown of the 220 kV and 132 kV bus and

220 kV and 132 kV bay, but when it had finally obtained a shutdown for charging the

ICT, it was not submitted. Therefore, we are not inclined to condone the time period of

168 days on account of the shutdown.

Time
Revised Time
Revised Time overrun
Asset SCOD COD Time overrun not
SCOD Overrun condone
Overrun condoned
d
Asset-I 6.9.2019 NIL NIL NA NA
1.10.2019 NIL NIL NA NA
Asset-II

Asset-IV 31.12.2019 NIL NIL NA NA

Asset-V 1.5.2020 1.10.2020 1.1.2020 NIL NIL NA NA
Asset-VI 13.1.2020 NIL NIL NA NA
Asset-VIII 31.7.2020 91 days NIL NA NA
Asset-X 2.4.2021 336 days 183 days 0 days 183 days
Asset-XI 19.2.2022 659 days 506 days 0 days 506 days

81. As we have already decided above that we are not inclined to grant a tariff for

Asset-III, Asset-VII, and Asset-IX, therefore, we are dealing with Assets-I, II, IV, V, VI,

VIII, X, and XI only in the subsequent paragraphs for tariff purposes.

Interest During Construction (IDC) / Incidental Expenditure During Construction

(IEDC)
82. The Petitioner has claimed IDC of the transmission asset covered in the instant

Petition and has submitted the statement showing IDC claim, discharge of IDC liability

as on COD, and thereafter as follows:

(₹ in lakh)
IDC IDC IDC IDC
IDC as per IDC
discharge discharge discharge discharge
Assets the Auditor Discharged
d during d during d during d during
Certificate up to COD
2019-20 2020-21 2021-22 2022-23
Asset-I 31.91 27.99 1.46 2.46 0.00 0.00
Asset-II 10.67 6.93 3.74 0.00 0.00
Asset-IV 43.17 12.98 2.09 28.10 0.00 0.00
Asset-V 53.28 7.76 45.52 0.00 0.00
Asset-VI 21.16 5.36 0.31 15.49 0.00
Asset-VIII 154.37 143.26 8.56 2.55 0.00
Asset-X 3.74 3.74 0.00 0.00
Asset-XI 157.88 120.66 4.72 32.51

Order in Petition No. 9/TT/2023

Page 51 of 104
83. We have considered the submissions of the Petitioner. As discussed above in

this order, there is a claim for time overrun of 183 and 506 days from the actual COD

for Asset-X and Asset-XI, respectively, and the same has been disallowed.

Accordingly, the IDC on a cash basis up to the COD has been worked out based on the

loan details given in the Statement showing discharge of IDC and Form-9C for the

transmission assets. The IDC claimed and considered as on COD and summary of

discharge of IDC liability up to COD and thereafter, for the purpose of tariff

determination, subject to revision at the time of truing up, is as follows:

(₹ in lakh)
IDC
Disallow
ed Due
to
IDC IDC IDC IDC IDC
IDC as per computa
IDC Discharge discharge discharge discharge discharge
Assets Auditor tional
Allowed d upto d during d during d during d during
Certificate error/tim
COD 2019-20 2020-21 2021-22 2022-23
e over-
run not
condone
d
Asset-I 31.91 0.52 31.39 27.46 1.46 2.47 0.00 0.00

Asset-II 10.67 0.13 10.54 6.79 3.75 0.00 0.00

Asset-IV 43.17 1.08 42.09 12.53 2.09 27.47 0.00 0.00

Asset-V 53.28 1.03 52.25 7.48 44.77 0.00 0.00

Asset-VI 21.16 0.59 20.57 4.76 0.31 15.50 0.00

Asset-VIII 154.37 14.30 140.07 129.12 8.56 2.39 0.00

Asset-X 3.74 1.23 2.51 2.51 0.00 0.00

Asset-XI 157.88 104.59 53.29 0.00 53.29 0.00

84. Further, the Petitioner has claimed IEDC for the transmission assets as per the

Auditor Certificates. The Petitioner has further submitted that the entire amount of IEDC

for the transmission assets has been discharged up to COD. As the time overrun for the

Asset-X and Asset-XI has not been condoned, we disallow the IEDC on a pro rata basis

in these 2 transmission assets. The IEDC claimed, as per the Auditor Certificate, IEDC

considered and discharged up to COD as follows:

Order in Petition No. 9/TT/2023

Page 52 of 104
 (₹ in lakh)
IEDC IEDC
IEDC
claimed as per disallowed - due to
Assets Allowed
the Auditor time overrun, not
(C)=(A-B)
certificate (A) condoned (B)
Asset-I 167.37 0.00 167.37
Asset-II 25.57 0.00 25.57
Asset-IV 142.91 0.00 142.91
Asset-V 271.48 0.00 271.48
Asset-VI 34.78 0.00 34.78
Asset-VIII 101.03 0.00 101.03
Asset-X 194.14 28.49 165.65
Asset-XI 447.63 144.27 303.36

Initial Spares
85. Regulation 23(d) of the 2019 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%
- Brown Field- 6.00%
(iii) Series Compensation devices and HVDC Station- 4.00%
(iv) Gas Insulated Sub-station (GIS)
- Green Field- 5.00%
- Brown Field- 7.00%
(v) Communication System- 3.50%
(vi) Static Synchronous Compensator- 6.00%”

86. The Initial Spares as claimed by the Petitioner are as follows:

(₹ in lakh)
Ceiling limit
Plant and
Initial Spares mentioned as
Assets Particulars machinery
claimed per Regulation
cost
(In %)
Asset-I Sub-station (Brownfield) 3001.92 113.89 6.00
Asset-II Sub-station (Brownfield) 1266.86 72.05 6.00
Asset-IV Sub-station (Brownfield) 2040.94 91.86 6.00
Asset-V Sub-station (Brownfield) 2644.04 91.66 6.00
Asset-VI Sub-station (Brownfield) 927.42 78.34 6.00
Asset-VIII Sub-station (Brownfield) 2372.45 106.42 6.00
Asset-X Sub-station (Brownfield) 1069.24 39.03 6.00
Asset-XI Sub-station (Brownfield) 3435.6 163.52 7.00

Order in Petition No. 9/TT/2023

Page 53 of 104
87. The Petitioner has submitted the initial spares discharge, details of which are as

follows:

Spares Discharge
Total initial spares in the Auditor certificate (₹ in lakh)
Asset name
COD 2019-20 2020-21 2021-22

TL SS TL SS TL SS TL SS TL SS

Asset-I 0.00 113.89 0.00 83.42 0.00 9.40 0.00 14.32 0.00 6.75
Asset-II 0.00 72.05 0.00 66.91 0.00 5.14 0.00 0.00 0.00 0.00
Asset-IV 0.00 91.86 0.00 76.47 0.00 0.00 0.00 6.54 0.00 8.85
Asset-V 0.00 91.66 0.00 79.06 0.00 0.00 0.00 3.87 0.00 8.73
Asset-VI 0.00 78.34 0.00 75.26 0.00 3.08 0.00 0.00 0.00 0.00
Asset-VIII 0.00 106.42 0.00 98.29 0.00 0.00 0.00 5.69 0.00 2.44
Asset-X 0.00 39.03 0.00 30.55 0.00 0.00 0.00 0.00 0.00 8.48

Total initial Spares Discharge

Asset spares in the (₹ in lakh)
name Auditor
COD 2021-22 2022-23 2023-24
certificate
TL SS TL SS TL SS TL SS TL SS
Asset- XI 0.00 163.52 0.00 150.44 0.00 5.08 0.00 8.00 0.00 0.00

88. We have considered the submissions of the Petitioner. Based on the information

available on record, the Initial Spares for the transmission asset are allowed as per the

respective percentage of the Plant and Machinery Cost as on the cut-off date. The Initial

Spares allowed for the transmission assets are as follows:

Plant and
Machiner
y cost
(excludin
Norms as Initial Initial
g Initial Initial
per 2019 Spares Spares
IDC/IEDC, Spares Spares
Assets Particulars Tariff disallowe Allowed
Land claimed allowable
Regulatio d (₹ in (₹ in lakh)
cost and (₹ in lakh) (₹ in lakh)
ns (In %) lakh)
Cost of
Civil
Works) (₹
in lakh)
D=(A-
A B C B)*C/(100 E=B-D
-C)
Sub-station 3001.92 113.89 6.00 184.34 0.00 113.89
Asset-I
Transmission Line 390.58 0.00 1.00 0.00 0.00 0.00
Asset-II Sub-station 1266.86 72.05 6.00 76.26 0.00 72.05
Asset-IV Sub-station 2040.94 91.86 6.00 124.41 0.00 91.86
Asset-V Sub-station 2644.04 91.66 6.00 162.92 0.00 91.66

Order in Petition No. 9/TT/2023

Page 54 of 104
 Asset-VI Sub-station 927.42 78.34 6.00 54.20 24.14 54.20
Asset-VIII Sub-station 2372.45 106.42 6.00 144.64 0.00 106.42
Asset-X Sub-station 1069.24 39.03 6.00 65.76 0.00 39.03
Asset-XI Sub-station 3435.60 163.52 7.00 246.29 0.00 163.52

89. Accordingly, there are excess Initial Spares claimed for Asset-VI. Therefore, the

Initial Spares have been allowed as per the 2019 Tariff Regulations. The capital cost

allowed as on COD is as follows:

(₹ in lakh)
Capital Cost
claimed as Excess IS Capital Cost as
Undischarged IDC
on COD IDC Disallowed IEDC Disallowed Disallowed on COD
Assets as on COD
(Auditor (B) (D) upto COD (G) = (A-B-C-D-
(C)
Certificate) (E) E-F)
(A)
Asset-I 2224.21 0.52 3.93 0.00 0.00 2219.76
Asset-II 733.10 0.13 3.75 0.00 0.00 729.22
Asset-IV 1650.96 1.08 29.56 0.00 0.00 1620.32
Asset-V 2096.24 1.03 44.77 0.00 0.00 2050.44
Asset-VI 776.88 0.59 15.81 0.00 21.06 739.42
Asset-VIII 2275.99 14.30 10.95 0.00 0.00 2250.74
Asset-X 1001.84 1.23 0.00 28.49 0.00 972.12
Asset-XI 3342.52 104.59 53.29 144.27 0.00 3040.37

De-capitalisation:

90. In Form-10B, the Petitioner has submitted the de-capitalisation details in case of

Assets-II, III, VII, and IX. The Petitioner has submitted that the de-capitalisation will be

carried out as per the provisions of the tariff regulations separately in the original

projects against the respective transmission assets.

91. We have considered the submissions of the Petitioner. The asset-wise de-

capitalisation has been considered in subsequent paragraphs.

Asset-II:

92. The Commission had trued-up the transmission tariff for the 2014-19 and granted

the tariff for 50 MVA ICT at Malda Substation vide order dated 27.1.2021 in Petition No.

311/TT/2019. The Petitioner has replaced the 50 MVA ICT with a 160 MVA ICT. We

have considered the submissions made by the Petitioner. The Petitioner is directed to

Order in Petition No. 9/TT/2023

Page 55 of 104
decapitalise the 50 MVA ICT installed at Malda Substation while filing the true-up of

2019-24 in Petition No. 311/TT/2019.

Asset-III:

93. In the case of Asset-III, the Petitioner has proposed to decapitalise only the

conductors and insulators. The Petitioner is directed to decapitalise the same in Petition

No. 207/TT/2020, while filing the true-up of the 2019-24 tariff period. The Petitioner is

further directed to explore how the aforesaid conductors and insulators can be

capitalised at other locations as per need and put to use, or their salvage value needs

to be adjusted with the re-conductoring value.

Asset-IX:

94. In case of Asset-IX, the Petitioner has submitted that de-capitalisation of the 400

kV Teesta (Stage-V) Siliguri Transmission Line and LILO of 400 kV D/C Teesta V-

Siliguri Line at Rangpo will be carried out separately under Petition No. 465/TT/2020

and Petition No. 382/TT/2020. With respect to decapitalisation of Asset-IX, the

Petitioner is directed as follows:

Petition No. 382/TT/2020 Direction of the Commission

Asset-2: Termination of Gangtok- The Petitioner is directed to de-capitlaise
Rangpo/Chujachen and Melli- entire cost of the LILO of 400 kV D/C Teesta-
Rangpo/Chujachen Line at Rangpo and V Siliguri Line (Ckt-I) at Rangpo and
associated bays at Rangpo Sub-station, LILO associated bays in Petition No. 382/TT/2020
of 400 kV D/C Teesta-V Siliguri Line (Ckt-I) at and capitalise under Petition No.
Rangpo and associated bays along with 1 465/TT/2020 while filing the true-up of tariff
Number 400 kV Bus Coupler bay at Rangpo for the 2019-24 Tariff Period.
Substation, 01 number 3X105 MVA Single
Phase 400/220 kV Transformer (1st) and
associated bays along with 1 Number 1X105
MVA Single Phase, 400/220 kV Spare
Transformer at the Rangpo Substation, and
One number 100 MVA 220/132 kV
Transformer (1st) and associated bays along
with 1 number 132 kV Bus Coupler Bay and
1 number 132 kV Bus Sectionaliser bay at
Rangpo Substation ( COD: 24.4.2014)
Asset-12 LILO of 400 kV D/C Teesta V The Petitioner is directed to de-capitlaise the
Siliguri line (Ckt-II) at Rangpo and associated entire cost of the LILO of 400 kV D/C Teesta
bays at the Rangpo Substation V-Siliguri Line (Ckt-2) at Rangpo and
associated bays in Petition No. 382/TT/2020

Order in Petition No. 9/TT/2023

Page 56 of 104
 and capitalise under Petition No.
465/TT/2020 while filing the true-up of tariff
for the 2019-24 Tariff Period.

Petition No. 465/TT/2020 Direction of the Commission

The Commission vide order 16.06.2021 in Since the decapitalisation of only conductors
Petition No. 465/TT/2020 has trued-up the and insulators has been proposed, it can be
tariff for the 2014-19 and determined tariff for capitalised at other locations as per need,
2019-24 for Combined Asset of Ckt-I and Ckt- wherever it would be put to use, or its salvage
II of 400 kV Teesta (Stage-V) Siliguri value needs to be adjusted with the
Transmission Line; The Petitioner has prayed reconductoring value. Accordingly, the
that the Petitioner will decapitalise the same Petitioner is directed to decapitalise the same
under Petition No 465/TT/2020. in Petition No. 465/TT/2020.

Additional Capital Expenditure (ACE)

95. Regulation 24 of the 2019 Tariff Regulations provides as follows:

“24. Additional Capitalisation within the original scope and upto 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 23of 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.”

96. The Petitioner has claimed that the ACE incurred/ projected to be incurred is

mainly on account of balance/ retention payments, and hence the same is claimed

under Regulations 24(1)(a) and 24(1)(b) of the 2019 Tariff Regulations. The Petitioner

has claimed capital cost as per the cash IDC discharge as on 31.3.2024 as follows:

Order in Petition No. 9/TT/2023

Page 57 of 104
 (₹ in lakh)
Capital Cost Projected ACE 2019-24 Estimated
Assets as on COD Completion
2019-20 2020-21 2021-22 2022-23 2023-24 Cost
Asset-I 2224.21 957.30 205.14 136.75 68.38 3591.78
Asset-II 733.10 400.00 170.00 1303.10
Asset-IV 1650.96 120.23 215.36 180.35 60.12 2227.02
Asset-V 2096.24 174.51 305.40 305.40 87.26 2968.80
Asset-VI 776.88 53.08 123.40 30.00 983.36
Asset-VIII 2275.99 202.58 200.00 2678.57
Asset-X 1001.84 187.85 51.62 25.81 1267.12
Asset-XI 3342.52 48.59 350.00 300.00 4041.11

97. In response, the Petitioner vide affidavit dated 24.8.2022 has submitted that the

element-wise details of ACE claimed and the Liability flow statement in the instant

petition have been submitted vide Form-12 submitted in the Petition. The details of the

liability flow are as follows:

(₹ in lakh)
Outsta
Outsta
nding
Year of nding
Part Liabili
Asset Actual Liabilit
Party icul ty as Discharge Additional Liability Recognised
No. Capital y as on
ar on
isation 31.3.20
1.4.20
24
19
201 202 202 202 202 Total 201 202 202 202 202 Total
9- 0- 1- 2- 3- (2019- 9- 0- 1- 2- 3- (2019-
20 21 22 23 24 24) 20 21 22 23 24 24)
TBEA 189. 40.5 27.0 13.5
TL 270.24 270.24 0.00
Energ 2019- 17 4 2 1
Asset-I
y Pvt 20 1097.3 768. 164. 109. 54.8
SS 1097.33 0.00
Ltd 3 13 60 73 7
TBEA
Energ 2019- 150. 170. 250.
Asset-II SS 320.00 320.00 0.00 250.00 0.00
y Pvt 20 00 00 00
Ltd
TBEA
Energ 2019- 120. 215. 180. 60.1
Asset-IV SS 576.06 576.06 0.00
y Pvt 20 23 36 35 2
Ltd
TBEA
Energ 2019- 174. 305. 305. 87.2
Asset-V SS 872.57 872.57 0.00
y Pvt 20 51 40 40 6
Ltd
TBEA
Energ 2019- 53.0 123. 30.0
Asset-VI SS 206.48 206.48 0.00
y Pvt 20 8 40 0
Ltd
TBEA
SS,
Asset- Energ 2020- 202. 200.
BC& 402.58 402.58 0.00
VIII y Pvt 21 58 00
W
Ltd
TBEA
Energ 2021- 187. 51.6 25.8
Asset-X SS 265.28 265.28 0.00
y Pvt 22 52 2 1
Ltd
TBEA
SS,
Energ 2021- 48.5 350. 300.
Asset-XI BC& 698.59 698.59 0.00
y Pvt 22 9 00 00
W
Ltd

98. We have considered the submissions of the Petitioner. The actual / projected

ACE allowed is subject to truing up in respect of the transmission asset, and the same

is as follows:

Order in Petition No. 9/TT/2023

Page 58 of 104
 Asset-I:

(₹ in lakh)
Particulars 2019-20 2020-21 2021-22 2022-23
ACE as per Auditor’s certificate 957.30 205.14 136.75 68.38
Add: IDC Discharged 1.46 2.47 0.00 0.00
ACE allowed in the instant order 958.76 207.61 136.75 68.38

Asset-II:
(₹ in lakh)
Particulars 2019-20 2020-21
ACE as per Auditor’s certificate 400.00 170.00
Add: IDC Discharged 0.00 3.75
ACE allowed in the instant order 400.00 173.75

Asset-IV:
(₹ in lakh)
Particulars 2019-20 2020-21 2021-22 2022-23
ACE as per Auditor’s
120.23 215.36 180.35 60.12
certificate
Add: IDC Discharged 2.09 27.47 0.00 0.00
ACE allowed in the
122.32 242.83 180.35 60.12
instant order

Asset-V:
(₹ in lakh)
Particulars 2019-20 2020-21 2021-22 2022-23
ACE as per Auditor’s certificate 174.51 305.40 305.40 87.26
Add: IDC Discharged 0.00 44.77 0.00 0.00
ACE allowed in the instant order 174.51 350.17 305.40 87.26

Asset-VI:
(₹ in lakh)
Particulars 2019-20 2020-21 2021-22
ACE as per Auditor’s certificate 53.08 123.40 30.00
Add: IDC Discharged 0.31 15.50 0.00
Less: Excess IS 3.08 0.00 0.00
ACE allowed in the instant order 50.31 138.90 30.00

Asset-VIII:
(₹ in lakh)
Particulars 2020-21 2021-22
ACE as per Auditor’s certificate 202.58 200.00
Add: IDC Discharged 8.56 2.39
ACE allowed in the instant order 211.14 202.39

Asset-X:
(₹ in lakh)
Particulars 2021-22 2022-23 2023-24
ACE as per Auditor’s certificate 187.85 51.62 25.81
Add: IDC Discharged 0.00 0.00 0.00
ACE allowed in the instant order 187.85 51.62 25.81

Order in Petition No. 9/TT/2023

Page 59 of 104
 Asset-XI:
(₹ in lakh)
Particulars 2021-22 2022-23 2023-24
ACE as per Auditor’s certificate 48.59 350.00 300.00
Add: IDC Discharged 53.29 0.00 0.00
ACE allowed in the instant order 101.88 350.00 300.00

99. The capital cost considered for the transmission asset for the 2019-24 tariff

period is as follows:

(₹ in lakh)
Approved ACE 2019-24 Estimated
Capital Cost
Assets Completio
as on COD 2019-20 2020-21 2021-22 2022-23 2023-24
n Cost
Asset-I 2219.76 958.76 207.61 136.75 68.38 0.00 3591.26
Asset-II 729.22 400.00 173.75 0.00 0.00 0.00 1302.97
Asset-IV 1620.32 122.32 242.83 180.35 60.12 0.00 2225.94
Asset-V 2050.44 174.51 350.17 305.40 87.26 0.00 2967.78
Asset-VI 739.42 50.31 138.90 30.00 0.00 0.00 958.63
Asset-VIII 2250.74 211.14 202.39 0.00 0.00 2664.27
Asset-X 972.12 187.85 51.62 25.81 1237.40
Asset-XI 3040.37 101.88 350.00 300.00 3792.26

Debt-Equity ratio

100. Regulation 18 of the 2019 Tariff Regulations provides as follows:

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

Provided that:

i. where equity actually deployed is less than 30% of the capital cost, actual
equity shall be considered for determination of tariff:
ii. the equity invested in foreign currency shall be designated in Indian rupees
on the date of each investment:
iii. any grant obtained for the execution of the project shall not be considered
as a part of capital structure for the purpose of debt: equity ratio.

Explanation-The premium, if any, raised by the generating company or the transmission

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

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

Order in Petition No. 9/TT/2023

Page 60 of 104
 (3) In case of the generating station and the transmission system including
communication system declared under commercial operation prior to 1.4.2019, debt:
equity ratio allowed by the Commission for determination of tariff for the period ending
31.3.2019 shall be considered:

Provided that in case of a generating station or a transmission system including

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

Provided further that in case of projects owned by Damodar Valley Corporation,

the debt: equity ratio shall be governed as per sub-clause (ii) of clause (2) of Regulation
72 of these regulations.

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

(5) Any expenditure incurred or projected to be incurred on or after 1.4.2019 as may be

admitted by the Commission as additional capital expenditure for determination of tariff,
and renovation and modernisation expenditure for life extension shall be serviced in the
manner specified in clause (1) of this Regulation.”

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

101. The debt-equity considered for the purpose of computation of tariff for the 2019-

24 tariff period for the transmission assets is as follows:

Asset-I
ACE Capital Cost
Capital Cost as
during as on In
Funding on COD In % In %
2019-24 31.3.2024 %
(₹ in lakh)
(₹ in lakh) (₹ in lakh)
Debt 1553.83 70.00 960.05 70.00 2513.88 70.00
Equity 665.93 30.00 411.45 30.00 1077.38 30.00
Total 2219.76 100.00 1371.50 100.00 3591.26 100.00

Asset-II
ACE Capital Cost
Capital Cost
during as on
Funding as on COD In % In % In %
2019-24 31.3.2024
(₹ in lakh)
(₹ in lakh) (₹ in lakh)
Debt 510.45 70.00 401.62 70.00 912.07 70.00
Equity 218.77 30.00 172.12 30.00 390.89 30.00
Total 729.22 100.00 573.75 100.00 1302.97 100.00

Order in Petition No. 9/TT/2023

Page 61 of 104
Asset-IV
ACE Capital Cost
Capital Cost as
during as on
Funding on COD In % In % In %
2019-24 31.3.2024
(₹ in lakh)
(₹ in lakh) (₹ in lakh)
Debt 1134.22 70.00 423.93 70.00 1558.15 70.00
Equity 486.10 30.00 181.68 30.00 667.78 30.00
Total 1620.32 100.00 605.62 100.00 2225.94 100.00

Asset-V
ACE Capital Cost
Capital Cost as
during as on
Funding on COD In % In % In %
2019-24 31.3.2024
(₹ in lakh)
(₹ in lakh) (₹ in lakh)
Debt 1435.31 70.00 642.14 70.00 2077.45 70.00
Equity 615.13 30.00 275.20 30.00 890.33 30.00
Total 2050.44 100.00 917.34 100.00 2967.78 100.00

Asset-VI
ACE Capital Cost
Capital Cost
during as on
Funding as on COD In % In % In %
2019-24 31.3.2024
(₹ in lakh)
(₹ in lakh) (₹ in lakh)
Debt 517.59 70.00 153.45 70.00 671.04 70.00
Equity 221.83 30.00 65.76 30.00 287.59 30.00
Total 739.42 100.00 219.21 100.00 958.63 100.00

Asset-VIII
ACE Capital Cost
Capital Cost as
during as on
Funding on COD In % In % In %
2019-24 31.3.2024
(₹ in lakh)
(₹ in lakh) (₹ in lakh)
Debt 1575.52 70.00 289.47 70.00 1864.99 70.00
Equity 675.22 30.00 124.06 30.00 799.28 30.00
Total 2250.74 100.00 413.53 100.00 2664.27 100.00
Asset-X
ACE
Capital Cost as Capital Cost as on
during
Funding on COD In % In % 31.3.2024 In %
2019-24
(₹ in lakh) (₹ in lakh)
(₹ in lakh)
Debt 680.48 70.00 185.70 70.00 866.18 70.00
Equity 291.64 30.00 79.58 30.00 371.22 30.00
Total 972.12 100.00 265.28 100.00 1237.40 100.00

Asset-XI
Capital Cost
Capital Cost ACE during
as on
Funding as on COD In % 2019-24 In % In %
31.3.2024
(₹ in lakh) (₹ in lakh)
(₹ in lakh)
Debt 2128.26 70.00 526.32 70.00 2654.58 70.00
Equity 912.11 30.00 225.57 30.00 1137.68 30.00
Total 3040.37 100.00 751.88 100.00 3792.25 100.00

Order in Petition No. 9/TT/2023

Page 62 of 104
Depreciation

102. Regulation 33 of the 2019 Tariff Regulations provides as follows:

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

Provided that effective date of commercial operation shall be worked out by

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

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

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

(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 assets 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 assets.

(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

Order in Petition No. 9/TT/2023

Page 63 of 104
 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 assets 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-
capitalized asset during its useful services.

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

(10) Depreciation of the emission control system of an existing or a new generating

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

a) twenty five years, in case the generating station or unit thereof is in operation
for fifteen years or less as on the date of operation of the emission control
system; or
b) balance useful life of the generating station or unit thereof plus fifteen years,
in case the generating station or unit thereof is in operation for more than fifteen
years as on the date of operation of the emission control system; or
c) ten years or a period mutually agreed by the generating company and the
beneficiaries, whichever is higher, in case the generating station or unit thereof
has completed its useful life.”

103. The depreciation has been worked out considering the admitted capital

expenditure as on the COD and thereafter up to 31.3.2024. The Weighted Average Rate

of Depreciation (WAROD) at Annexure has been worked out for the transmission asset

as per the rates of depreciation specified in the 2019 Tariff Regulations. The

depreciation allowed for the transmission asset is as follows:

Asset-I
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
Depreciation
A Opening Gross Block 2219.76 3178.52 3386.13 3522.88 3591.26
B ACE 958.76 207.61 136.75 68.38 0.00
C Closing Gross Block (A+B) 3178.52 3386.13 3522.88 3591.26 3591.26

Order in Petition No. 9/TT/2023

Page 64 of 104
 2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
D Average Gross Block (A+C)/2 2699.14 3282.33 3454.51 3557.07 3591.26
Weighted average rate of
E 5.28 5.28 5.28 5.28 5.28
Depreciation (WAROD) (In %)
F Balance useful life of the asset 26 26 25 24 23
Lapsed life at the beginning of
G 0 0 1 2 3
the year
Aggregate Depreciable Value (D
H 2429.23 2954.09 3109.05 3201.36 3232.13
* 90%)
Depreciation during the year
I 80.99 173.31 182.40 187.81 189.62
(D * E)
Aggregate Cumulative
J Depreciation at the end of the 80.99 254.30 436.70 624.51 814.13
year
Remaining Aggregate
K Depreciable Value at the end of 2348.24 2699.79 2672.36 2576.85 2418.01
the year (H – J)

Asset-II
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
Depreciation
A Opening Gross Block 729.22 1129.22 1302.97 1302.97 1302.97
B ACE 400.00 173.75 0.00 0.00 0.00
C Closing Gross Block (A+B) 1129.22 1302.97 1302.97 1302.97 1302.97
D Average Gross Block (A+C)/2 929.22 1216.09 1302.97 1302.97 1302.97
Weighted average rate of
E 5.28 5.28 5.28 5.28 5.28
Depreciation (WAROD) (In %)
F Balance useful life of the asset 25 25 24 23 22
Lapsed life at the beginning of
G 0 0 1 2 3
the year
Aggregate Depreciable Value (D
H 836.30 1094.49 1172.67 1172.67 1172.67
* 90%)
Depreciation during the year
I 24.53 64.21 68.80 68.80 68.80
(D * E)
Aggregate Cumulative
J Depreciation at the end of the 24.53 88.74 157.54 226.33 295.13
year
Remaining Aggregate
K Depreciable Value at the end of 811.77 1005.74 1015.13 946.34 877.54
the year (H – J)

Asset-IV
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
Depreciation
A Opening Gross Block 1620.32 1742.64 1985.47 2165.82 2225.94

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 2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
B ACE 122.32 242.83 180.35 60.12 0.00
C Closing Gross Block (A+B) 1742.64 1985.47 2165.82 2225.94 2225.94
D Average Gross Block (A+C)/2 1681.48 1864.05 2075.64 2195.88 2225.94
Weighted average rate of
E 5.43 5.42 5.41 5.41 5.40
Depreciation (WAROD) (In %)
F Balance useful life of the asset 25 25 24 23 22
Lapsed life at the beginning of
G 0 0 1 2 3
the year
Aggregate Depreciable Value (D
H 1515.88 1680.34 1870.92 1979.13 2006.18
* 90%)
Depreciation during the year
I 22.94 101.04 112.35 118.70 120.29
(D * E)
Aggregate Cumulative
J Depreciation at the end of the 22.94 123.98 236.33 355.04 475.33
year
Remaining Aggregate
K Depreciable Value at the end of 1492.94 1556.36 1634.58 1624.09 1530.86
the year (H – J)

Asset-V
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
91 days)
Depreciation
A Opening Gross Block 2050.44 2224.95 2575.12 2880.52 2967.78
B ACE 174.51 350.17 305.40 87.26 0.00
C Closing Gross Block (A+B) 2224.95 2575.12 2880.52 2967.78 2967.78
D Average Gross Block (A+C)/2 2137.69 2400.03 2727.82 2924.15 2967.78
Weighted average rate of
E 5.73 5.68 5.64 5.61 5.61
Depreciation (WAROD) (In %)
F Balance useful life of the asset 24 24 23 22 21
Lapsed life at the beginning of the
G 0 0 1 2 3
year
Aggregate Depreciable Value (D *
H 1933.75 2169.97 2465.08 2641.78 2681.05
90%)
Depreciation during the year (D *
I 30.44 136.38 153.79 164.16 166.46
E)
Aggregate Cumulative Depreciation
J 30.44 166.82 320.61 484.77 651.23
at the end of the year
Remaining Aggregate Depreciable
K 1903.31 2003.15 2144.47 2157.01 2029.81
Value at the end of the year (H – J)

Asset-VI
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
79 days)
Depreciation
A Opening Gross Block 739.42 789.73 928.63 958.63 958.63

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 2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
79 days)
B ACE 50.31 138.90 30.00 0.00 0.00
C Closing Gross Block (A+B) 789.73 928.63 958.63 958.63 958.63
D Average Gross Block (A+C)/2 764.57 859.18 943.63 958.63 958.63
Weighted average rate of
E 5.28 5.28 5.28 5.28 5.28
Depreciation (WAROD) (In %)
F Balance useful life of the asset 25 25 24 23 22
Lapsed life at the beginning of the
G 0 0 1 2 3
year
Aggregate Depreciable Value (D *
H 688.12 773.26 849.27 862.77 862.77
90%)
Depreciation during the year (D *
I 8.71 45.36 49.82 50.62 50.62
E)
Aggregate Cumulative Depreciation
J 8.71 54.08 103.90 154.52 205.13
at the end of the year
Remaining Aggregate Depreciable
K 679.40 719.18 745.37 708.25 657.63
Value at the end of the year (H – J)

Asset-VIII
(₹ in lakh)
2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
244 days)
Depreciation
A Opening Gross Block 2250.74 2461.88 2664.27 2664.27
B ACE 211.14 202.39 0.00 0.00
C Closing Gross Block (A+B) 2461.88 2664.27 2664.27 2664.27
D Average Gross Block (A+C)/2 2356.31 2563.08 2664.27 2664.27
Weighted average rate of
E 5.24 5.24 5.24 5.24
Depreciation (WAROD) (In %)
F Balance useful life of the asset 25 25 24 23
Lapsed life at the beginning of the
G 0 0 1 2
year
Aggregate Depreciable Value (D *
H 2120.68 2306.77 2397.84 2397.84
90%)
Depreciation during the year (D *
I 82.61 134.35 139.69 139.69
E)
Aggregate Cumulative Depreciation
J 82.61 216.96 356.66 496.35
at the end of the year
Remaining Aggregate Depreciable
K 2038.07 2089.81 2041.18 1901.49
Value at the end of the year (H – J)

Asset-X
(₹ in lakh)
2021-22
Particulars (pro-rata 364 2022-23 2023-24
days)
Depreciation
A Opening Gross Block 972.12 1159.97 1211.59
B ACE 187.85 51.62 25.81
C Closing Gross Block (A+B) 1159.97 1211.59 1237.40

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 2021-22
Particulars (pro-rata 364 2022-23 2023-24
days)
D Average Gross Block (A+C)/2 1066.04 1185.78 1224.49
Weighted average rate of
E 5.53 5.51 5.50
Depreciation (WAROD) (In %)
F Balance useful life of the asset 24 24 23
Lapsed life at the beginning of the
G 0 0 1
year
Aggregate Depreciable Value (D *
H 962.15 1069.98 1104.85
90%)
Depreciation during the year (D *
I 58.77 65.31 67.38
E)
Aggregate Cumulative Depreciation
J 58.77 124.08 191.46
at the end of the year
Remaining Aggregate Depreciable
K 903.39 945.90 913.39
Value at the end of the year (H – J)

Asset-XI
(₹ in lakh)
2021-22
Particulars (pro-rata 41 2022-23 2023-24
days)
Depreciation
A Opening Gross Block 3040.37 3142.26 3492.26
B ACE 101.88 350.00 300.00
C Closing Gross Block (A+B) 3142.26 3492.26 3792.26
D Average Gross Block (A+C)/2 3091.31 3317.26 3642.26
Weighted average rate of
E 5.28 5.28 5.28
Depreciation (WAROD) (In %)
F Balance the useful life of the asset 25 25 24
Lapsed life at the beginning of the
G 0 0 1
year
Aggregate Depreciable Value (D *
H 2782.18 2985.53 3278.03
90%)
Depreciation during the year (D *
I 18.33 175.15 192.31
E)
Aggregate Cumulative Depreciation
J 18.33 193.49 385.80
at the end of the year
Remaining Aggregate Depreciable
K 2763.85 2792.05 2892.23
Value at the end of the year (H – J)

Interest on Loan (IoL)

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

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

(2) The normative loan outstanding as on 1.4.2019 shall be worked out by

deducting the cumulative repayment as admitted by the Commission up to 31.3.2019
from the gross normative loan.

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

(4) Notwithstanding any moratorium period availed by the generating company or

the transmission licensee, as the case may be, the repayment of loan shall be
considered from the first year of commercial operation of the project and shall be equal
to the depreciation allowed for the year or part of the year.

(5) The rate of interest shall be the weighted average rate of interest calculated on
the basis of the actual loan portfolio after providing appropriate accounting adjustment
for interest capitalized:
Provided that if there is no actual loan for a particular year but normative loan
is still outstanding, the last available weighted average rate of interest shall be
considered;

Provided further that if the generating station or the transmission system, as

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

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

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

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

105. The Weighted Average Rate of IoL (WAROI) has been considered on the basis

of the rate prevailing as on the COD. The Petitioner has prayed that the change in

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. Therefore, the IoL has been allowed in accordance

with Regulation 32 of the 2019 Tariff Regulations for the transmission asset and is as

follows:

Asset-I
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
A Gross Normative Loan 1553.83 2224.96 2370.29 2466.01 2513.88

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 2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
Cumulative Repayments up to the
B 0.00 80.99 254.30 436.70 624.51
Previous Year
C Net Loan-Opening (A-B) 1553.83 2143.97 2115.99 2029.32 1889.37
D Additions due to ACE 671.13 145.33 95.73 47.87 0.00
E Repayment during the year 80.99 173.31 182.40 187.81 189.62
F Net Loan-Closing (C+D-E) 2143.97 2115.99 2029.32 1889.37 1699.75
G Average Loan (C+F)/2 1848.90 2129.98 2072.65 1959.34 1794.56
Weighted Average Rate of
H 7.9441 7.9442 7.9443 7.9443 7.9420
Interest on Loan (In %)
I Interest on Loan (G*H) 83.47 169.21 164.66 155.66 142.52

Asset-II
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
A Gross Normative Loan 510.45 790.45 912.07 912.07 912.07
Cumulative Repayments up to the
B 0.00 24.53 88.74 157.54 226.33
Previous Year
C Net Loan-Opening (A-B) 510.45 765.92 823.33 754.54 685.74
D Additions due to ACE 280.00 121.62 0.00 0.00 0.00
E Repayment during the year 24.53 64.21 68.80 68.80 68.80
F Net Loan-Closing (C+D-E) 765.92 823.33 754.54 685.74 616.94
G Average Loan (C+F)/2 638.18 794.63 788.93 720.14 651.34
Weighted Average Rate of Interest
H 7.7176 7.7185 7.7193 7.7193 7.7149
on Loan (In %)
I Interest on Loan (G*H) 24.63 61.33 60.90 55.59 50.25

Asset-IV
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
A Gross Normative Loan 1134.22 1219.84 1389.82 1516.07 1558.15
Cumulative Repayments up to the
B 0.00 22.94 123.98 236.33 355.04
Previous Year
C Net Loan-Opening (A-B) 1134.22 1196.91 1265.84 1279.73 1203.11
D Additions due to ACE 85.62 169.98 126.25 42.08 0.00
E Repayment during the year 22.94 101.04 112.35 118.70 120.29
F Net Loan-Closing (C+D-E) 1196.91 1265.84 1279.73 1203.11 1082.82
G Average Loan (C+F)/2 1165.56 1231.37 1272.79 1241.42 1142.97
Weighted Average Rate of Interest
H 7.4723 7.4711 7.4700 7.4700 7.4676
on Loan (In %)
I Interest on Loan (G*H) 21.89 92.00 95.08 92.73 85.35

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Asset-V
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
91 days)
A Gross Normative Loan 1435.31 1557.47 1802.59 2016.37 2077.45
Cumulative Repayments up to the
B 0.00 30.44 166.82 320.61 484.77
Previous Year
C Net Loan-Opening (A-B) 1435.31 1527.03 1635.77 1695.75 1592.68
D Additions due to ACE 122.16 245.12 213.78 61.08 0.00
E Repayment during the year 30.44 136.38 153.79 164.16 166.46
F Net Loan-Closing (C+D-E) 1527.03 1635.77 1695.75 1592.68 1426.21
G Average Loan (C+F)/2 1481.17 1581.40 1665.76 1644.22 1509.45
Weighted Average Rate of Interest
H 7.3803 7.3804 7.3806 7.3806 7.3796
on Loan (In %)
I Interest on Loan (G*H) 27.18 116.71 122.94 121.35 111.39

Asset-VI
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
79 days)
A Gross Normative Loan 517.59 552.81 650.04 671.04 671.04
Cumulative Repayments up to the
B 0.00 8.71 54.08 103.90 154.52
Previous Year
C Net Loan-Opening (A-B) 517.59 544.09 595.96 567.14 516.52
D Additions due to ACE 35.22 97.23 21.00 0.00 0.00
E Repayment during the year 8.71 45.36 49.82 50.62 50.62
F Net Loan-Closing (C+D-E) 544.09 595.96 567.14 516.52 465.90
G Average Loan (C+F)/2 530.84 570.03 581.55 541.83 491.21
Weighted Average Rate of Interest
H 7.4336 7.4374 7.4410 7.4410 7.4390
on Loan (In %)
I Interest on Loan (G*H) 8.52 42.40 43.27 40.32 36.54

Asset-VIII
(₹ in lakh)
2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
244 days)
A Gross Normative Loan 1575.52 1723.32 1864.99 1864.99
Cumulative Repayments up to the
B 0.00 82.61 216.96 356.66
Previous Year
C Net Loan-Opening (A-B) 1575.52 1640.71 1648.02 1508.33
D Additions due to ACE 147.80 141.67 0.00 0.00
E Repayment during the year 82.61 134.35 139.69 139.69
F Net Loan-Closing (C+D-E) 1640.71 1648.02 1508.33 1368.64
G Average Loan (C+F)/2 1608.11 1644.36 1578.18 1438.48
Weighted Average Rate of Interest on
H 7.0808 7.0804 7.0804 7.0799
Loan (In %)

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 2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
244 days)
I Interest on Loan (G*H) 76.12 116.43 111.74 101.84

Asset-X
(₹ in lakh)
2021-22
Particulars (pro-rata 2022-23 2023-24
364 days)
A Gross Normative Loan 680.48 811.98 848.11
Cumulative Repayments up to the
B 0.00 58.77 124.08
Previous Year
C Net Loan-Opening (A-B) 680.48 753.21 724.03
D Additions due to ACE 131.50 36.13 18.07
E Repayment during the year 58.77 65.31 67.38
F Net Loan-Closing (C+D-E) 753.21 724.03 674.72
G Average Loan (C+F)/2 716.84 738.62 699.38
Weighted Average Rate of Interest on
H 5.9749 5.9749 5.9743
Loan (In %)
I Interest on Loan (G*H) 42.71 44.13 41.78

Asset-XI
(₹ in lakh)
2021-22
Particulars (pro-rata 41 2022-23 2023-24
days)
A Gross Normative Loan 2128.26 2199.58 2444.58
Cumulative Repayments up to the
B 0.00 18.33 193.49
Previous Year
C Net Loan-Opening (A-B) 2128.26 2181.24 2251.09
D Additions due to ACE 71.32 245.00 210.00
E Repayment during the year 18.33 175.15 192.31
F Net Loan-Closing (C+D-E) 2181.24 2251.09 2268.78
G Average Loan (C+F)/2 2154.75 2216.17 2259.94
Weighted Average Rate of Interest on
H 6.3598 6.3575 6.3555
Loan (In %)
I Interest on Loan (G*H) 15.39 140.89 143.63

Return on Equity (RoE)

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

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

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

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 of-river generating station with pondage:

Provided that return on equity in respect of additional capitalization after cutoff

date beyond the original scope, excluding additional capitalization on 7 account
of emission control system, shall be computed at the weighted average rate of
interest on actual loan portfolio of the generating station or the transmission
system or in the absence of actual loan portfolio of the generating station or the
transmission system, the weighted average rate of interest of the generating
company or the transmission licensee, as the case may be, as a whole shall be
considered, subject to 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.

(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)

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 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 ₹ 1,000 crore;
(b) Estimated Advance Tax for the year on above is ₹ 240 crore;
(c) Effective Tax Rate for the year 2019-20 = ₹ 240 Crore/₹ 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.”

107. The Petitioner has submitted that the MAT rate is applicable to the Petitioner's

company. Accordingly, the MAT rate applicable in 2019-20 has been considered for the

purpose of the RoE, which will be trued-up in accordance with Regulation 31(3) of the

2019 Tariff Regulations. The RoE allowed for the transmission asset has been worked

out as follows:

Asset-I
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
A Opening Equity (A) 665.93 953.56 1015.84 1056.87 1077.38
B Additions (B) 287.63 62.28 41.03 20.51 0.00

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 2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
C Closing Equity (C) = (A+B) 953.56 1015.84 1056.87 1077.38 1077.38
Average Equity (D) =
D 809.74 984.70 1036.35 1067.12 1077.38
(A+C)/2
Return on Equity (Base
E 15.500 15.500 15.500 15.500 15.500
Rate) (In %)
MAT Rate for respective
F 17.472 17.472 17.472 17.472 17.472
year (In %)
Rate of Return on Equity
G 18.782 18.782 18.782 18.782 18.782
(In %)
H Return on Equity (D*G) 86.43 184.95 194.65 200.43 202.35

Asset-II
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
A Opening Equity (A) 218.77 338.77 390.89 390.89 390.89
B Additions (B) 120.00 52.12 0.00 0.00 0.00
C Closing Equity (C) = (A+B) 338.77 390.89 390.89 390.89 390.89
D Average Equity (D) = (A+C)/2 278.77 364.83 390.89 390.89 390.89
Return on Equity (Base Rate)
E 15.500 15.500 15.500 15.500 15.500
(In %)
MAT Rate for respective year
F 17.472 17.472 17.472 17.472 17.472
(In %)
Rate of Return on Equity (In
G 18.782 18.782 18.782 18.782 18.782
%)
H Return on Equity(D*G) 26.18 68.52 73.42 73.42 73.42

Asset-IV
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
A Opening Equity (A) 486.10 522.80 595.64 649.75 667.78
B Additions (B) 36.70 72.85 54.11 18.04 0.00
C Closing Equity (C) = (A+B) 522.80 595.64 649.75 667.78 667.78
D Average Equity (D) = (A+C)/2 504.45 559.22 622.70 658.77 667.78
Return on Equity (Base Rate)
E 15.500 15.500 15.500 15.500 15.500
(In %)
MAT Rate for respective year
F 17.472 17.472 17.472 17.472 17.472
(In %)
Rate of Return on Equity (In
G 18.782 18.782 18.782 18.782 18.782
%)
H Return on Equity(D*G) 23.82 105.03 116.95 123.73 125.42

Order in Petition No. 9/TT/2023

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Asset-V
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
91 days)
A Opening Equity (A) 615.13 667.48 772.53 864.15 890.33
B Additions (B) 52.35 105.05 91.62 26.18 0.00
C Closing Equity (C) = (A+B) 667.48 772.53 864.15 890.33 890.33
D Average Equity (D) = (A+C)/2 641.31 720.01 818.34 877.24 890.33
Return on Equity (Base Rate)
E 15.500 15.500 15.500 15.500 15.500
(In %)
MAT Rate for respective year
F 17.472 17.472 17.472 17.472 17.472
(In %)
Rate of Return on Equity (In
G 18.782 18.782 18.782 18.782 18.782
%)
H Return on Equity(D*G) 29.95 135.23 153.70 164.76 167.22

Asset-VI
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
79 days)
A Opening Equity (A) 221.83 236.92 278.59 287.59 287.59
B Additions (B) 15.09 41.67 9.00 0.00 0.00
C Closing Equity (C) = (A+B) 236.92 278.59 287.59 287.59 287.59
D Average Equity (D) = (A+C)/2 229.38 257.76 283.09 287.59 287.59
Return on Equity (Base Rate)
E 15.500 15.500 15.500 15.500 15.500
(In %)
MAT Rate for respective year
F 17.472 17.472 17.472 17.472 17.472
(In %)
Rate of Return on Equity (In
G 18.782 18.782 18.782 18.782 18.782
%)
H Return on Equity(D*G) 9.30 48.41 53.17 54.02 54.02

Asset-VIII
(₹ in lakh)
2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
244 days)
A Opening Equity (A) 675.22 738.56 799.28 799.28
B Additions (B) 63.34 60.72 0.00 0.00
C Closing Equity (C) = (A+B) 738.56 799.28 799.28 799.28
D Average Equity (D) = (A+C)/2 706.89 768.92 799.28 799.28
Return on Equity (Base Rate)
E 15.500 15.500 15.500 15.500
(In %)
MAT Rate for respective year
F 17.472 17.472 17.472 17.472
(In %)
Rate of Return on Equity (In
G 18.782 18.782 18.782 18.782
%)
H Return on Equity(D*G) 88.75 144.42 150.12 150.12

Order in Petition No. 9/TT/2023

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Asset-X
(₹ in lakh)
2021-22
Particulars (pro-rata 364 2022-23 2023-24
days)
A Opening Equity (A) 291.64 348.00 363.48
B Additions (B) 56.36 15.49 7.74
C Closing Equity (C) = (A+B) 348.00 363.48 371.22
D Average Equity (D) = (A+C)/2 319.82 355.74 367.35
Return on Equity (Base Rate)
E 15.500 15.500 15.500
(In %)
MAT Rate for respective year
F 17.472 17.472 17.472
(In %)
Rate of Return on Equity (In
G 18.782 18.782 18.782
%)
H Return on Equity(D*G) 59.90 66.81 69.00

Asset-XI
(₹ in lakh)
2021-22
Particulars (pro-rata 41 2022-23 2023-24
days)
A Opening Equity (A) 912.11 942.68 1047.68
B Additions (B) 30.57 105.00 90.00
C Closing Equity (C) = (A+B) 942.68 1047.68 1137.68
D Average Equity (D) = (A+C)/2 927.39 995.18 1092.68
Return on Equity (Base Rate)
E 15.500 15.500 15.500
(In %)
MAT Rate for respective year
F 17.472 17.472 17.472
(In %)
Rate of Return on Equity (In
G 18.782 18.782 18.782
%)
H Return on Equity (D*G) 19.57 186.91 205.23

Operation & Maintenance Expenses (O&M Expenses)

108. The Petitioner has claimed the following O&M expenses for the transmission

asset for the 2019-24 period are as follows:

Asset-I
Particulars 2019-20
(pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
Transmission Line:
(i) 220 kV Interconnecting Line from PG Sub-station to BSPTCL Sub-station for 500 MVA
ICT-IV
Bays:
(i) Biharsharif: ICT-IV 220 kV Bay Biharsharif (BSPTCL)
(ii) Biharsharif: ICT-IV 400 kV Bay Biharsharif (PG)
(iii) Biharsharif: ICT-IV Biharsharif (PG)

Order in Petition No. 9/TT/2023

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 Asset-I
Particulars 2019-20
(pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
TL Length (in km) 0.80 0.80 0.80 0.80 0.80
Norms (₹ lakh/km) 0.503 0.521 0.539 0.558 0.578
O&M Expenses claimed (₹
0.23 0.42 0.43 0.45 0.46
in lakh)
400 kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses claimed (₹
18.27 33.28 34.45 35.66 36.91
in lakh)
220 kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses claimed (₹
12.79 23.30 24.12 24.96 25.84
in lakh)
400 kV ICT Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.358 0.371 0.384 0.398 0.411
O&M Expenses claimed (₹
101.73 185.50 192.00 199.00 205.50
in lakh)
Total O&M Expenses
133.02 242.50 251.00 260.07 268.71
claimed (₹ in lakh)

Asset-II
Particulars 2019-
20(pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
Bays:
(i) Malda: 160 MVA ICT
220 kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.245 0.254 0.263 0.272 0.282
O&M Expenses claimed (₹
19.60 40.64 42.08 43.52 45.12
in lakh)

Asset-IV
Particulars 2019-
20(pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
Bays:
(i) Lakhisarai: 400 kV Bay for ICT III
(ii) Lakhisarai: 132 kV Bay for ICT III
(iii) Lakhisarai: ICT III
400kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses
8.08 33.28 34.45 35.66 36.91
claimed (₹ in lakh)
132 kVBays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 16.08 16.64 17.23 17.83 18.48
O&M Expenses
4.04 16.64 17.23 17.83 18.46
claimed (₹ in lakh)
400 kV ICT Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.358 0.371 0.384 0.398 0.411

Order in Petition No. 9/TT/2023

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 Asset-IV
Particulars 2019-
20(pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
O&M Expenses
28.35 116.87 120.96 125.37 129.47
claimed (₹ in lakh)
Total O&M Expenses
40.47 166.79 172.64 178.86 184.84
claimed (₹ in lakh)

Asset-V
Particulars 2019-20(pro-
2020-21 2021-22 2022-23 2023-24
rata 91 days)
Bays:
(i) Banka: ICT III
(ii) Banka: 400 kV Bay for ICT III
(iii) Banka: 132 kV Bay for ICT III
400kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses
7.99 33.28 34.45 35.66 36.91
claimed (₹ in lakh)
132 kVBays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 16.08 16.64 17.23 17.83 18.48
O&M Expenses
4.04 16.64 17.23 17.83 18.46
claimed (₹ in lakh)
400 kV ICT Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.358 0.371 0.384 0.398 0.411
O&M Expenses
28.04 116.87 120.96 125.37 129.47
claimed (₹ in lakh)
Total O&M Expenses
40.03 166.79 172.64 178.66 184.84
claimed (₹ in lakh)

Asset-VI
Particulars 2019-20(pro-
2020-21 2021-22 2022-23 2023-24
rata 79 days)
Bays:
(i) Subhasgram: 125 MVAR BR Bay

400 kV Bays 1.00 1.00 1.00 1.00 1.00

Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses
6.94 33.28 34.45 35.66 36.91
claimed (₹ in lakh)

Asset-VIII
Particulars 2020-21(pro-rata 244
2021-22 2022-23 2023-24
days)
Bays:
(i) Maithon: 400 kV Bay for ICT Maithon
(ii) Maithon: 220 kV Bay for ICT Maithon
(iii) Maithon: 500 MVA ICT at Maithon
400 kV Bays 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 33.28 34.45 35.66 36.91
O&M Expenses
22.25 34.45 35.66 36.91
claimed (₹ in lakh)

Order in Petition No. 9/TT/2023

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 Asset-VIII
Particulars 2020-21(pro-rata 244
2021-22 2022-23 2023-24
days)
220 kV Bays 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 23.30 24.12 24.96 25.84
O&M Expenses
15.58 24.12 24.96 25.84
claimed (₹ in lakh)
400 kV ICT Bays 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.371 0.384 0.398 0.411
O&M Expenses
124.01 192.00 199.00 205.50
claimed (₹ in lakh)
Total O&M Expenses
161.84 250.57 259.62 268.25
claimed (₹ in lakh)
Asset-XI
Particulars 2021-22(pro-rata 41
2022-23 2023-24
days)
Bays:
(i) Rangpo: 220 kV Bay for ICT
(ii) Rangpo: 132 kV Bay for ICT
(iii) Rangpo: ICT at Rangpo
220 kV ICT Bay 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.263 0.272 0.282
O&M Expenses claimed (₹ in lakh) 2.95 27.20 28.20
220 kV GIS Bays 1.00 1.00 1.00
Norms (₹ lakh/Bay) 16.884 17.472 18.088
O&M Expenses claimed (₹ in lakh) 1.90 17.47 18.09
400 kV ICT Bays 1.00 1.00 1.00
Norms (₹ lakh/Bay) 12.061 12.841 12.922
O&M Expenses claimed (₹ in lakh) 1.35 12.48 12.92
Total O&M Expenses claimed (₹ in
6.20 57.15 59.21
lakh)

109. The norms specified under Regulation 35(3)(a) of the 2019 Tariff Regulations

provide as follows:

“35. Operation and Maintenance Expenses:

(3) Transmission system: (a) The following normative operation and

maintenance expenses shall be admissible for the transmission system:
2019- 2020- 2021- 2022- 2023-
Particulars
20 21 22 23 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

Order in Petition No. 9/TT/2023

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 2019- 2020- 2021- 2022- 2023-
Particulars
20 21 22 23 24

Norms for AC and HVDC lines (₹ Lakh per km)

Single Circuit (Bundled
Conductor with six or more sub- 0.881 0.912 0.944 0.977 1.011
conductors)
Single Circuit (Bundled
conductor with four sub- 0.755 0.781 0.809 0.837 0.867
conductors)
Single Circuit (Twin & Triple
0.503 0.521 0.539 0.558 0.578
Conductor)
Single Circuit (Single
0.252 0.260 0.270 0.279 0.289
Conductor)
Double Circuit (Bundled
conductor with four or more 1.322 1.368 1.416 1.466 1.517
sub-conductors)
Double Circuit (Twin & Triple
0.881 0.912 0.944 0.977 1.011
Conductor)
Double Circuit (Single
0.377 0.391 0.404 0.419 0.433
Conductor)
Multi Circuit (Bundled
Conductor with four or more 2.319 2.401 2.485 2.572 2.662
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 (₹
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 (₹ Lakh) (1500 MW)
±500 kV Talcher- Kolar HVDC
bipole scheme (₹ Lakh) (2000 2,468 2,555 2,645 2,738 2,834
MW)
±500 kV Bhiwadi-Balia HVDC
bipole scheme (₹ Lakh) (2500 1,696 1,756 1,817 1,881 1,947
MW)
±800 kV, Bishwanath-Agra
HVDC bipole scheme (₹ 2,563 2,653 2,746 2,842 2,942
Lakh)(3000 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

Order in Petition No. 9/TT/2023

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 Double Circuit quad AC line;
(iii) the O&M expenses of ±500 kV Mundra-Mohindergarh HVDC bipole
scheme (2500 MW)shall be allowed as worked out by multiplying 0.80 of the
normative O&M expenses for ±500 kV Talchar-Kolar HVDC bi-pole scheme
(2000 MW);
(iv) the O&M expenses of ±800 kV Champa-Kurukshetra HVDC bi-pole
scheme (3000 MW) shall be on the basis of the normative O&M expenses for
±800 kV, Bishwanath-Agra HVDC bi-pole scheme;
(v) the O&M expenses of ±800 kV, Alipurduar-Agra HVDC bi-pole scheme
(3000 MW)shall be allowed as worked out by multiplying 0.80 of the normative
O&M expenses for ±800 kV, Bishwanath-Agra HVDC bi-pole scheme; and
(vi) the O&M expenses of Static Synchronous Compensator and Static Var
Compensator shall be worked at 1.5% of original project cost as on commercial
operation which shall be escalated at the rate of 3.51% to work out the O&M
expenses during the tariff period. The O&M expenses of Static Synchronous
Compensator and Static Var Compensator, if required, may be reviewed after
three years.

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

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

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

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

110. The O&M Expenses have been worked out for the various elements of the

transmission assets, except Asset-III, Asset-IX, and Asset-X as per the norms specified

in the 2019 Tariff Regulations and are as follows:

Asset-I
Particulars 2019-20
(pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
Transmission Line:
(i) 220 kV Interconnecting Line from PG Sub-station to BSPTCL Sub-station for 500
MVA ICT-IV
Bays:
(i) Biharsharif: ICT-IV 220 kV Bay Biharsharif (BSPTCL)
(ii) Biharsharif: ICT-IV 400 kV Bay Biharsharif (PG)
(iii) Biharsharif: ICT-IV Biharsharif (PG)
TL Length (in km) 0.80 0.80 0.80 0.80 0.80

Order in Petition No. 9/TT/2023

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 Asset-I
Particulars 2019-20
(pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
Norms (₹ lakh/km) 0.503 0.521 0.539 0.558 0.578
O&M Expenses claimed (₹
0.23 0.42 0.43 0.45 0.46
in lakh)
400 kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses claimed (₹
18.27 33.28 34.45 35.66 36.91
in lakh)
220 kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses claimed (₹
12.79 23.30 24.12 24.96 25.84
in lakh)
400 kV ICT Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.358 0.371 0.384 0.398 0.411
O&M Expenses claimed (₹
101.73 185.50 192.00 199.00 205.50
in lakh)
Total O&M Expenses
133.02 242.50 251.00 260.07 268.71
claimed (₹ in lakh)

Asset-II
Particulars 2019-
20(pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
Bays:
(i) Malda: 160 MVA ICT
220 kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.245 0.254 0.263 0.272 0.282
O&M Expenses claimed (₹
19.60 40.64 42.08 43.52 45.12
in lakh)

Asset-IV
Particulars 2019-
20(pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
Bays:
(i) Lakhisarai: 400 kV Bay for ICT III
(ii) Lakhisarai: 132 kV Bay for ICT III
(iii) Lakhisarai: ICT III
400kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses
8.08 33.28 34.45 35.66 36.91
claimed (₹ in lakh)
132 kVBays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 16.08 16.64 17.23 17.83 18.48
O&M Expenses
4.04 16.64 17.23 17.83 18.46
claimed (₹ in lakh)
400 kV ICT Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.358 0.371 0.384 0.398 0.411
O&M Expenses
28.35 116.87 120.96 125.37 129.47
claimed (₹ in lakh)

Order in Petition No. 9/TT/2023

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 Asset-IV
Particulars 2019-
20(pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
Total O&M Expenses
40.47 166.79 172.64 178.86 184.84
claimed (₹ in lakh)

Asset-V
Particulars 2019-20(pro-
2020-21 2021-22 2022-23 2023-24
rata 91 days)
Bays:
(i) Banka: ICT III
(ii) Banka: 400 kV Bay for ICT III
(iii) Banka: 132 kV Bay for ICT III
400kV Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses
7.99 33.28 34.45 35.66 36.91
claimed (₹ in lakh)
132 kVBays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 16.08 16.64 17.23 17.83 18.48
O&M Expenses
4.04 16.64 17.23 17.83 18.46
claimed (₹ in lakh)
400 kV ICT Bays 1.00 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.358 0.371 0.384 0.398 0.411
O&M Expenses
28.04 116.87 120.96 125.37 129.47
claimed (₹ in lakh)
Total O&M Expenses
40.03 166.79 172.64 178.66 184.84
claimed (₹ in lakh)

Asset-VI
Particulars 2019-20(pro-
2020-21 2021-22 2022-23 2023-24
rata 79 days)
Bays:
(i) Subhasgram: 125 MVAR BR Bay

400 kV Bays 1.00 1.00 1.00 1.00 1.00

Norms (₹ lakh/Bay) 32.15 33.28 34.45 35.66 36.91
O&M Expenses
6.94 33.28 34.45 35.66 36.91
claimed (₹ in lakh)

Asset-VIII
Particulars 2020-21(pro-rata 244
2021-22 2022-23 2023-24
days)
Bays:
(i) Maithon: 400 kV Bay for ICT Maithon
(ii) Maithon: 220 kV Bay for ICT Maithon
(iii) Maithon: 500 MVA ICT at Maithon
400 kV Bays 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 33.28 34.45 35.66 36.91
O&M Expenses
22.25 34.45 35.66 36.91
claimed (₹ in lakh)
220 kV Bays 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 23.30 24.12 24.96 25.84

Order in Petition No. 9/TT/2023

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 Asset-VIII
Particulars 2020-21(pro-rata 244
2021-22 2022-23 2023-24
days)
O&M Expenses
15.58 24.12 24.96 25.84
claimed (₹ in lakh)
400 kV ICT Bays 1.00 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.371 0.384 0.398 0.411
O&M Expenses
124.01 192.00 199.00 205.50
claimed (₹ in lakh)
Total O&M Expenses
161.84 250.57 259.62 268.25
claimed (₹ in lakh)

Asset-XI
Asset-XI
Particulars 2021-22(pro-rata 41
2022-23 2023-24
days)
Bays:
(i) Rangpo: 220 kV Bay for ICT
(ii) Rangpo: 132 kV Bay for ICT
(iii) Rangpo: ICT at Rangpo
220 kV ICT Bay 1.00 1.00 1.00
Norms (₹ lakh/Bay) 0.263 0.272 0.282
O&M Expenses claimed (₹ in lakh) 2.95 27.20 28.20
220 kV GIS Bays 1.00 1.00 1.00
Norms (₹ lakh/Bay) 16.884 17.472 18.088
O&M Expenses claimed (₹ in lakh) 1.90 17.47 18.09
400 kV ICT Bays 1.00 1.00 1.00
Norms (₹ lakh/Bay) 12.061 12.841 12.922
O&M Expenses claimed (₹ in lakh) 1.35 12.48 12.92
Total O&M Expenses claimed (₹ in
6.21 57.15 59.21
lakh)
Interest on Working Capital (IWC)
111. 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:

(a) For Coal-based/lignite-fired thermal generating stations:

(i) Cost of coal or lignite and limestone towards stock, if applicable, for 10
days for pit-head generating stations and 20 days for non-pit-head generating
stations for generation corresponding to the normative annual plant availability
factor or the maximum coal/lignite stock storage capacity whichever is lower;
(ii) Advance payment for 30 days towards cost of coal or lignite and
limestone for generation corresponding to the normative annual plant
availability factor;
(iii) Cost of secondary fuel oil for two months for generation corresponding to
the normative annual plant availability factor, and in case of use of more than
one secondary fuel oil, cost of fuel oil stock for the main secondary fuel oil;
(iv) Maintenance spares @ 20% of operation and maintenance expenses
including water charges and security expenses;
(v) Receivables equivalent to 45 days of capacity charge and energy charge

Order in Petition No. 9/TT/2023

Page 85 of 104
 for sale of electricity calculated on the normative annual plant availability factor;
and
(vi) Operation and maintenance expenses, including water charges and
security expenses, for one month.

(aa) For emission control system of coal or lignite based thermal

generating stations:

(i) Cost of limestone or reagent towards stock for 20 days corresponding to the
normative annual plant availability factor;
(ii) Advance payment for 30 days towards cost of reagent for generation
corresponding to the normative annual plant availability factor;
(iii) Receivables equivalent to 45 days of supplementary capacity charge and
supplementary energy charge for sale of electricity calculated on the normative
annual plant availability factor;
(iv) Operation and maintenance expenses in respect of emission control system
for one month;
(v) Maintenance spares @20% of operation and maintenance expenses in
respect of emission control system.

(b) For Open-cycle Gas Turbine/Combined Cycle thermal generating

stations:
(i) Fuel cost for 30 days corresponding to the normative annual plant
availability factor, duly taking into account mode of operation of the generating
station on gas fuel and liquid fuel;
(ii) Liquid fuel stock for 15 days corresponding to the normative annual plant
availability factor, and in case of use of more than one liquid fuel, cost of main
liquid fuel duly taking into account mode of operation of the generating stations
of gas fuel and liquid fuel;
(iii) Maintenance spares @ 30% of operation and maintenance expenses
including water charges and security expenses;
(iv) Receivables equivalent to 45 days of capacity charge and energy charge
for sale of electricity calculated on normative plant availability factor, duly taking
into account mode of operation of the generating station on gas fuel and liquid
fuel; and
(v) Operation and maintenance expenses, including water charges and
security expenses, for one month.

(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.

(2) The cost of fuel in cases covered under sub-clauses (a) and (b) of clause (1) of
this Regulation shall be based on the landed fuel cost (taking into account normative
transit and handling losses in terms of Regulation 39 of these regulations) by the
generating station and gross calorific value of the fuel as per actual weighted average
for the third quarter of preceding financial year in case of each financial year for which
tariff is to be determined:

Provided that in case of new generating station, the cost of fuel for the first
financial year shall be considered based on landed fuel cost (taking into account
normative transit and handling losses in terms of Regulation 39 of these regulations)
and gross calorific value of the fuel as per actual weighted average for three months, as

Order in Petition No. 9/TT/2023

Page 86 of 104
 used for infirm power, preceding date of commercial operation for which tariff is to be
determined.

(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:-

‘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;”

112. 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 10.50%.

113. The IWC is worked out in accordance with Regulation 34 of the 2019 Tariff

Regulations. The Rate of Interest (ROI) considered is 12.05% (SBI 1-year MCLR

applicable as on 1.4.2019 of 8.55% plus 350 basis points) for 2019-20, 11.25% (SBI 1-

year MCLR applicable as on 1.4.2020 of 7.75% plus 350 basis points) for 2020-21,

10.50% (SBI 1-year MCLR applicable as on 1.4.2020 of 7.00% plus 350 basis points)

for 2021-22 and 2022-23 and 12.00% (SBI 1 year MCLR applicable as on 1.4.2023 of

8.50% plus 350 basis points) for 2023-24. The components of the working capital and

interest thereon allowed for transmission assets are as under:

Asset-I
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
WC for O&M Expenses
A (O&M Expenses for 1 19.51 20.21 20.92 21.67 22.39
month)
WC for Maintenance
B Spares (15% of O&M 35.11 36.37 37.65 39.01 40.31
Expenses)

Order in Petition No. 9/TT/2023

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 2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
WC for Receivables
(Equivalent to 45 days
C 85.13 97.06 99.78 101.21
of annual transmission 101.17
charges)
D Total Working Capital 139.74 153.64 158.35 161.90
163.87
E Rate of Interest (In %) 12.05 11.25 10.50 10.50 12.00
Interest on Working
F 9.57 17.28 16.63 17.00
Capital (D*E) 19.66

Asset-II
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
WC for O&M Expenses
A (O&M Expenses for 1 3.27 3.39 3.51 3.63 3.76
month)
WC for Maintenance
B Spares (15% of O&M 5.88 6.10 6.31 6.53 6.77
Expenses)
WC for Receivables
(Equivalent to 45 days
C 23.83 29.48 30.75 30.28 29.81
of annual transmission
charges)
D Total Working Capital 32.98 38.96 40.57 40.43 40.33
E Rate of Interest (In %) 12.05 11.25 10.50 10.50 12.00
Interest on Working
F 1.99 4.38 4.26 4.25 4.84
Capital (D*E)

Asset-IV
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
WC for O&M Expenses
A (O&M Expenses for 1 13.42 13.90 14.39 14.91 15.40
month)
WC for Maintenance
B Spares (15% of O&M 24.15 25.02 25.90 26.83 27.73
Expenses)
WC for Receivables
(Equivalent to 45 days
C 54.74 58.66 62.61 64.75 65.03
of annual transmission
charges)
D Total Working Capital 92.31 97.58 102.89 106.49 108.15
E Rate of Interest (In %) 12.05 11.25 10.50 10.50 12.00
Interest on Working
F 2.80 10.98 10.80 11.18 12.98
Capital (D*E)

Order in Petition No. 9/TT/2023

Page 88 of 104
Asset-V
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
91 days)
WC for O&M Expenses
A (O&M Expenses for 1 13.42 13.90 14.39 14.91 15.40
month)
WC for Maintenance
B Spares (15% of O&M 24.15 25.02 25.90 26.83 27.73
Expenses)
WC for Receivables
(Equivalent to 45 days
C 64.61 69.95 75.86 79.13 79.25
of annual transmission
charges)
D Total Working Capital 102.18 108.86 116.14 120.86 122.38
E Rate of Interest (In %) 12.05 11.25 10.50 10.50 12.00
Interest on Working
F 3.06 12.25 12.19 12.69 14.69
Capital (D*E)

Asset-VI
(₹ in lakh)
2019-20
2020- 2021- 2022- 2023-
Particulars (pro-rata
21 22 23 24
79 days)
WC for O&M Expenses (O&M
A 2.68 2.77 2.87 2.97 3.08
Expenses for 1 month)
WC for Maintenance Spares (15% of
B 4.82 4.99 5.17 5.35 5.54
O&M Expenses)
WC for Receivables (Equivalent to 45
C 19.46 21.29 22.68 22.67 22.35
days of annual transmission charges)
D Total Working Capital 26.97 29.06 30.72 30.99 30.96
E Rate of Interest (In %) 12.05 11.25 10.50 10.50 12.00
F Interest on Working Capital (D*E) 0.70 3.27 3.23 3.25 3.72

Asset-VIII
(₹ in lakh)
2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
244 days)
WC for O&M Expenses (O&M
A 20.17 20.88 21.64 22.35
Expenses for 1 month)
WC for Maintenance Spares
B 36.31 37.59 38.94 40.24
(15% of O&M Expenses)
WC for Receivables
C (Equivalent to 45 days of 77.34 81.43 83.38 83.29
annual transmission charges)
D Total Working Capital 133.83 139.89 143.96 145.88
E Rate of Interest (In %) 11.25 10.50 10.50 12.00
Interest on Working Capital
F 10.06 14.69 15.12 17.51
(D*E)

Order in Petition No. 9/TT/2023

Page 89 of 104
Asset-X
(₹ in lakh)
2021-22
Particulars (pro-rata 364 2022-23 2023-24
days)
WC for O&M Expenses (O&M
A 0.00 0.00 0.00
Expenses for 1 month)
WC for Maintenance Spares (15%
B 0.00 0.00 0.00
of O&M Expenses)
WC for Receivables (Equivalent to
C 45 days of annual transmission 20.21 22.02 22.23
charges)
D Total Working Capital 20.21 22.02 22.23
E Rate of Interest (In %) 10.50 10.50 12.00
Interest on Working Capital
F 2.12 2.31 2.67
(D*E)

Asset-XI
(₹ in lakh)
2021-22
Particulars (pro-rata 41 2022-23 2023-24
days)
WC for O&M Expenses (O&M
A 4.60 4.76 4.93
Expenses for 1 month)
WC for Maintenance Spares (15%
B 8.29 8.57 8.88
of O&M Expenses)
WC for Receivables (Equivalent to
C 45 days of annual transmission 66.33 70.14 75.13
charges)
D Total Working Capital 79.22 83.47 88.94
E Rate of Interest (In %) 10.50 10.50 12.00
Interest on Working Capital
F 0.93 8.76 10.67
(D*E)

Annual Fixed Charges for the 2019-24 Tariff Period

114. The transmission charges allowed for the transmission assets for the 2019-24

tariff period are as follows:

Asset-I
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
208 days)
A Depreciation 80.99 173.31 182.40 187.81 189.62
B Interest on Loan 83.47 169.21 164.66 155.66 142.52
C Return on Equity 86.43 184.95 194.65 200.43 202.35
D O & M Expenses 133.02 242.50 251.00 260.07 268.71
E Interest on Working Capital 9.57 17.28 16.63 17.00 19.66
F Total 393.48 787.25 809.34 820.97 822.86

Order in Petition No. 9/TT/2023

Page 90 of 104
Asset-II
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
183 days)
A Depreciation 24.53 64.21 68.80 68.80 68.80
B Interest on Loan 24.63 61.33 60.90 55.59 50.25
C Return on Equity 26.18 68.52 73.42 73.42 73.42
D O & M Expenses 19.60 40.64 42.08 43.52 45.12
E Interest on Working Capital 1.99 4.38 4.26 4.25 4.84
F Total 96.93 239.08 249.46 245.58 242.43

Asset-IV
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
92 days)
A Depreciation 22.94 101.04 112.35 118.70 120.29
B Interest on Loan 21.89 92.00 95.08 92.73 85.35
C Return on Equity 23.82 105.03 116.95 123.73 125.42
D O & M Expenses 40.47 166.79 172.64 178.86 184.84
E Interest on Working Capital 2.80 10.98 10.80 11.18 12.98
F Total 111.92 475.84 507.82 525.20 528.88

Asset-V
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
91 days)
A Depreciation 30.44 136.38 153.79 164.16 166.46
B Interest on Loan 27.18 116.71 122.94 121.35 111.39
C Return on Equity 29.95 135.23 153.70 164.76 167.22
D O & M Expenses 40.03 166.79 172.64 178.86 184.84
E Interest on Working Capital 3.06 12.25 12.19 12.69 14.69
F Total 130.66 567.36 615.26 641.83 644.61

Asset-VI
(₹ in lakh)
2019-20
Particulars (pro-rata 2020-21 2021-22 2022-23 2023-24
79 days)
A Depreciation 8.71 45.36 49.82 50.62 50.62
B Interest on Loan 8.52 42.40 43.27 40.32 36.54
C Return on Equity 9.30 48.41 53.17 54.02 54.02
D O & M Expenses 6.94 33.28 34.45 35.66 36.91
E Interest on Working Capital 0.70 3.27 3.23 3.25 3.72
F Total 34.17 172.72 183.94 183.87 181.81

Order in Petition No. 9/TT/2023

Page 91 of 104
Asset-VIII
(₹ in lakh)
2020-21
Particulars (pro-rata 2021-22 2022-23 2023-24
244 days)
A Depreciation 82.61 134.35 139.69 139.69
B Interest on Loan 76.12 116.43 111.74 101.84
C Return on Equity 88.75 144.42 150.12 150.12
D O & M Expenses 161.83 250.57 259.62 268.25
E Interest on Working Capital 10.06 14.69 15.12 17.51
F Total 419.37 660.46 676.29 677.41

Asset-X
(₹ in lakh)
2021-22
Particulars (pro-rata 364 2022-23 2023-24
days)
A Depreciation 58.77 65.31 67.38
B Interest on Loan 42.71 44.13 41.78
C Return on Equity 59.90 66.81 69.00
D O & M Expenses 0.00 0.00 0.00
E Interest on Working Capital 2.12 2.31 2.67
F Total 163.50 178.56 180.83

Asset-XI
(₹ in lakh)
2021-22
Particulars (pro-rata 41 2022-23 2023-24
days)
A Depreciation 18.33 175.15 192.31
B Interest on Loan 15.39 140.89 143.63
C Return on Equity 19.57 186.91 205.23
D O & M Expenses 6.21 57.15 59.21
E Interest on Working Capital 0.93 8.76 10.67
F Total 60.43 568.86 611.05

Filing Fee and the Publication Expenses

115. The Petitioner has sought reimbursement of fee paid by it for filing the Petition

and publication expenses.

116. The Petitioner shall be entitled for reimbursement of the filing fees and

publication expenses in connection with the present Petition, directly from the

Order in Petition No. 9/TT/2023

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beneficiaries on a pro-rata basis in accordance with Regulation 70(1) of the 2019 Tariff

Regulations.

Licence Fee & RLDC Fees and Charges

117. The Petitioner has sought reimbursement of the licensee fee in accordance with

Regulation 70(4) of the 2019 Tariff Regulations for the 2019-24 tariff period. The

Petitioner shall be entitled to the reimbursement of the 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 to the recovery of RLDC fee and charges in accordance

with Regulations 70(3) of the 2019 Tariff Regulations for the 2019-24 tariff period.

Goods and Services Tax

118. The Petitioner has submitted that, if GST is levied at any rate and at any point of

time in the 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, and the

same may be allowed to be recovered from the beneficiaries.

119. We have considered the Petitioner's submissions. GST is not levied on

transmission service at present, and we are of the view that the Petitioner’s prayer is

premature.

Security Expenses

120. The Petitioner has submitted that security expenses related to the transmission

assets are not claimed in the instant Petition. It will file a separate Petition to claim the

overall security expenses and the consequential IWC as per Regulation 35(3)(c) of the

2019 Tariff Regulations.

Order in Petition No. 9/TT/2023

Page 93 of 104
121. We have considered the Petitioner’s above submissions. The Petitioner has

claimed consolidated security expenses for the transmission assets owned by it on a

projected basis for the 2019-24 tariff period based on actual security expenses incurred

in the FY 2018-19 in Petition No. 260/MP/2020. The Commission vide order dated

3.8.2021 has already disposed of the said Petition. 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.

Capital Spares

122. 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

123. The Petitioner has submitted that Annual Fixed Charges for 2019-24 will be

recovered on monthly basis in accordance with Regulation 57 of Central Electricity

Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 and will be

shared by the beneficiaries and long term transmission customers in Central Electricity

Regulatory Commission (Sharing of Inter State Transmission Charges and Losses)

Regulations, 2010 dated 15.6.2010 and amendment to these Regulations issued vide

order dated 30.11.2012 or as amended from to time.

124. With effect from 1.11.2020, the sharing of transmission charges is governed by

the Central Electricity Regulatory Commission (Sharing of Transmission Charges and

Losses) Regulations, 2020 (in short, “the 2020 Sharing Regulations‟). Accordingly, the

liabilities of DICs for arrears of transmission charges determined through this order shall

be computed DIC-wise in accordance with the provisions of the respective Tariff

Regulations and shall be recovered from the concerned DICs through Bill 2 under

Regulation 15(2)(b) of the 2020 Sharing Regulations. For the subsequent period, the

Order in Petition No. 9/TT/2023

Page 94 of 104
billing, collection, and disbursement of the transmission charges approved in this order

shall be governed by the provisions of the 2020 Sharing Regulations as provided in

Regulation 57 of the 2019 Tariff Regulations.

125. To summarise:

a. AFC allowed in respect of the following transmission assets for the 2019-24

tariff period are as follows:

Asset-I
(₹ in lakh)
2019-20
(pro-rata 208 2020-21 2021-22 2022-23 2023-24
days)
393.48 787.25 809.34 820.97 822.86

Asset-II
(₹ in lakh)
2019-20
(pro-rata 183 2020-21 2021-22 2022-23 2023-24
days)
96.93 239.08 249.46 245.58 242.43

Asset-IV
(₹ in lakh)
2019-20
(pro-rata 92 2020-21 2021-22 2022-23 2023-24
days)
111.92 475.84 507.82 525.20 528.88

Asset-V
(₹ in lakh)
2019-20
(pro-rata 91 2020-21 2021-22 2022-23 2023-24
days)
130.66 567.36 615.26 641.83 644.61

Asset-VI
(₹ in lakh)
2019-20
(pro-rata 79 2020-21 2021-22 2022-23 2023-24
days)
34.17 172.72 183.94 183.87 181.81

Order in Petition No. 9/TT/2023

Page 95 of 104
Asset-VIII
(₹ in lakh)
2020-21
(pro-rata 244 2021-22 2022-23 2023-24
days)
419.37 660.46 676.29 677.41

Asset-X
(₹ in lakh)
2021-22
2022-23 2023-24
(pro-rata 364 days)
163.50 178.56 180.83

Asset-XI
(₹ in lakh)
2021-22
2022-23 2023-24
(pro-rata 41 days)
60.43 568.86 611.05

126. The Annexure to this order forms part of the order.

127. This order disposes of Petition No. 9/TT/2023 in terms of the above findings and

discussions.

sd/- sd/-
(Ramesh Babu V.) (Jishnu Barua)
Member Chairperson

Order in Petition No. 9/TT/2023 CERC Website S. No. 416/2025

Page 96 of 104
 ANNEXURE-I
Asset-I

Projected ACE Admitted Rate of Annual Depreciation as per Regulations

2019-24 Admitted
Capital (₹ in lakh) Capital Depreciat (₹ in lakh)
Cost as ion as
Cost as on
on per
1.4.2019
31.3.2024 Regulatio
Capital (₹ in lakh) 2019- 2020- 2021- 2022- 2023- 2020- 2021- 2022- 2023-
Total (₹ in lakh) ns 2019-20
Expenditure 20 21 22 23 24 21 22 23 24

Transmission
189.25 40.68 27.02 13.51 0.00 270.46 5.28% 20.90
Line 125.29 395.75 11.61 17.68 19.47 20.54
1101.0 168.7
Sub Station 769.51 166.93 109.73 54.87 0.00 5.28%
2094.47 4 3195.51 130.90 155.63 162.93 167.27 2

189.6
Total 1371.5 142.51 173.31 182.40 187.81
2219.76 958.76 207.61 136.75 68.38 - 3591.26 2
0
Average Gross Block 3282.3 3454.5 3557.0 3591.
2699.14
(₹ in lakh) 3 1 7 26
Weighted Average
5.28
Rate 5.28% 5.28% 5.28% 5.28%
%
of Depreciation

Order in Petition No. 9/TT/2023

Page 97 of 104
Asset-II

Projected ACE Annual Depreciation as per Regulations

2019-24 Admitted Admitted
(₹ in lakh) Rate of (₹ in lakh)
Capital Capital
Depreciatio
Cost as on Cost as on
n as per
1.4.2019 31.3.2024
Regulations
Capital (₹ in lakh) (₹ in lakh)
Expenditur 2019-20 2020-21 Total 2019-20 2020-21 2021-22 2022-23 2023-24
e

Sub Station 5.28%

729.22 400.00 173.75 573.75 1302.97 49.06 64.21 68.80 68.80 68.80

Total 49.06 64.21 68.80 68.80 68.80

729.22 400.00 173.75 573.75 1302.97
Average Gross Block
929.22 1216.09 1302.97 1302.97 1302.97
(₹ in lakh)

Weighted Average Rate

5.28% 5.28% 5.28% 5.28% 5.28%
of Depreciation

Order in Petition No. 9/TT/2023

Page 98 of 104
Asset-IV

Admitted
Projected ACE Rate of Annual Depreciation as per Regulations
2019-24 Admitted Capital
(₹ in lakh) Deprecia (₹ in lakh)
Capital Cost as
tion as
Cost as on on
per
1.4.2019 31.3.2024
Regulati
Capital (₹ in lakh) 2019- 2020- 2021- 2022- 2023- (₹ in 2020- 2021- 2022- 2023-
Total ons 2019-20
Expenditure 20 21 22 23 24 lakh) 21 22 23 24

Sub Station - 5.28%

1594.88 122.29 239.89 180.35 60.12 602.65 2197.53 87.44 97.00 108.09 114.44 116.03
IT Equipment (Incl.
- 15.00%
Software) 25.44 0.03 2.93 - - 2.96 28.40 3.82 4.04 4.26 4.26 4.26

Total - 91.26 101.04 112.35 118.70 120.29

1620.32 122.32 242.83 180.35 60.12 605.62 2225.94
Average Gross
1864.0 2075.6 2195.8 2225.9
Block 1681.48
5 4 8 4
(₹ in lakh)
Weighted Average
Rate 5.43% 5.42% 5.41% 5.41% 5.40%
of Depreciation

Order in Petition No. 9/TT/2023

Page 99 of 104
Asset-V

Admitted
Projected ACE Rate of Annual Depreciation as per Regulations
2019-24 Admitted Capital
(₹ in lakh) Deprecia (₹ in lakh)
Capital Cost as
tion as
Cost as on on
per
1.4.2019 31.3.2024
Regulati
Capital (₹ in lakh) 2019- 2020- 2021- 2022- 2023- (₹ in 2020- 2021- 2022- 2023-
Total ons 2019-20
Expenditure 20 21 22 23 24 lakh) 21 22 23 24

Sub Station - 5.28%

1952.13 174.51 348.02 305.40 87.26 915.19 2867.33 107.68 121.47 138.73 149.09 151.39
IT Equipment (Incl.
- - 15.00%
Software) 98.30 - 2.15 - 2.15 100.45 14.75 14.91 15.07 15.07 15.07

Total - 122.43 136.38 153.79 164.16 166.46

2050.44 174.51 350.17 305.40 87.26 917.34 2967.78
Average Gross
2400.0 2727.8 2924.1 2967.7
Block 2137.69
3 2 5 8
(₹ in lakh)
Weighted Average
Rate 5.73% 5.68% 5.64% 5.61% 5.61%
of Depreciation

Order in Petition No. 9/TT/2023

Page 100 of 104
Asset-VI

Admitted
Projected ACE Capital Annual Depreciation as per Regulations
2019-24 Admitted
(₹ in lakh) Cost as Rate of (₹ in lakh)
Capital
on Depreciatio
Cost as on
31.3.202 n as per
1.4.2019
4 Regulations
Capital (₹ in lakh)
Expenditur
2019- 2020- 2021-
Total (₹ in 2019-20 2020-21 2021-22 2022-23 2023-24
20 21 22 lakh)
e

Sub Station 138.90 30.00 958.63 5.28%

739.42 50.31 219.21 40.37 45.36 49.82 50.62 50.62

Total 138.90 30.00 958.63 40.37 45.36 49.82 50.62 50.62

739.42 50.31 219.21
Average Gross Block
764.57 859.18 943.63 958.63 958.63
(₹ in lakh)

Weighted Average Rate

5.28% 5.28% 5.28% 5.28% 5.28%
of Depreciation

Order in Petition No. 9/TT/2023

Page 101 of 104
Asset-VIII

Projected ACE Annual Depreciation as per Regulations

2019-24 Admitted Admitted
(₹ in lakh) Rate of (₹ in lakh)
Capital Capital Cost
Depreciation
Cost as on as on
as per
1.4.2019 31.3.2024
Regulations
(₹ in lakh) (₹ in lakh)
Capital Expenditure 2020-21 2021-22 Total 2021-22 2022-23 2023-24
2020-21

Building Civil Works & Colony 35.44 15.01 0.04 15.05 50.49 3.34% 1.43 1.69 1.69 1.69

Sub Station 2215.30 196.13 202.35 398.47 2613.77 5.28% 122.15 132.67 138.01 138.01

Total 2250.74 211.14 202.39 413.53 2664.27 123.58 134.35 139.69 139.69

Average Gross Block

2356.31 2563.08 2664.27 2664.27
(₹ in lakh)

Weighted Average Rate

5.24% 5.24% 5.24% 5.24%
of Depreciation

Order in Petition No. 9/TT/2023

Page 102 of 104
Asset-X

Annual Depreciation as per

Projected ACE
2019-24 Admitted Admitted Regulations
(₹ in lakh) Rate of
Capital Capital Cost (₹ in lakh)
Depreciation
Cost as on as on
as per
1.4.2019 31.3.2024
Regulations
(₹ in lakh) (₹ in lakh)
Capital Expenditure 2021-22 2022-23 2023-24 Total 2021-22 2022-23 2023-24

Sub Station 945.47 186.83 51.33 25.66 263.82 1209.29 5.28% 54.85 61.14 63.17

IT Equipment (Incl. Software) 26.65 1.02 0.29 0.15 1.46 28.11 15.00% 4.07 4.17 4.20

Total 972.12 187.85 51.62 25.81 265.28 1237.40 58.93 65.31 67.38

Average Gross Block

1066.04 1185.78 1224.49
(₹ in lakh)

Weighted Average Rate

5.53% 5.51% 5.50%
of Depreciation

Order in Petition No. 9/TT/2023

Page 103 of 104
Asset-XI

Annual Depreciation as per

Projected ACE
2019-24 Admitted Admitted Regulations
(₹ in lakh) Rate of
Capital Capital Cost (₹ in lakh)
Depreciation
Cost as on as on
as per
1.4.2019 31.3.2024
Regulations
Capital (₹ in lakh) (₹ in lakh)
2021-22 2022-23 2023-24 Total 2021-22 2022-23 2023-24
Expenditure

Sub Station 3040.37 101.88 350.00 300.00 751.88 3792.26 5.28% 163.22 175.15 192.31

Total 3040.37 101.88 350.00 300.00 751.88 3792.26 163.22 175.15 192.31

Average Gross Block

3091.31 3317.26 3642.26
(₹ in lakh)

Weighted Average Rate

5.28% 5.28% 5.28%
of Depreciation

Order in Petition No. 9/TT/2023

Page 104 of 104