the gazette of indiacercind.gov.in/regulation/08-gz.pdf · 1.2 these regulations shall come into...

REGD NO D L -33004/99

The Gazette of IndiaEXTRAORDINARY

PART III—Section 4

PUBLISHED BY AUTHORITY

No. 75] NEW DELHI, MONDAY, MARCH 26. 2001/CHAITRA 5, 1923

948 GI/2001 (1)

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CENTRAL ELECTRICITY REGULATORY COMMISSION

NOTIFICATION

New Delhi, the 26th March. 2001

No. L-7/25(!)/2001-CERC—In exercise of powers conferred under Section 28 or the Elcclnc.n RceuhuwvCommission Ac. 1998 hcrcmafter referred to a s ,hc Act and all other powers enabling ,n tins b a. ,he C Stlcc.ncm Regulator Commission, hereinafter referred .o as .he Commission, hercbv prescribes th roughXses r : : ; s : r i o n s in accordancc wiih M tiic innir- ci— *» - < ^ - •

CHAPTER 1

PRELIMINARY

1.1 These Regulations shall be called the Central Electricity Regulatory Commission(Terms & Conditions of Tariff) Regulations, 2001.

1.2 These Regulations shall come into force w.e.f. 1-4-2001, and shall remain inforce for a period of 3 years, unless reviewed earlier or extended by theCommission.

1.3 These Regulations shall apply where the capital cost-based tariff is determinedby the Commission.

119

1.4 The generation tariff under these Regulations shall be determined station-wiseand transmission tariff shall be determined line-wise, sub station-wise, as thecase may be, and aggregated to regional tariff.

Provided that a utility may file a petition for fixation of tariff in respect of thecompleted units/systems.

1.5 In case of new projects, a utility shall submit the petition as per Appexdix I to thisnotification, for determination of tariff at least 3 months in advance of theanticipated date of completion of project based on the project cost as approvedby the Authority or an appropriate independent agency, other than the Board ofDirectors of the Generating Company, as the case may be.

1.6 For the purpose of tariff the capital cost of the project shall be broken up intostages and by distinct units forming part of the project. The common facilitiesshall be apportioned on the basis of the installed capacity of the units andlines/sub Stations where break up of the project cost is not available and in caseof on-going projects. All fresh petitions shall also be filed in the form as per

"Appendix I.

1.7 Recovery of Income Tax and Foreign Exchange Rate Variation shall be donedirectly by the utilities from the beneficiaries without filing a petition before theCommission. In case of any objections by the beneficiaries to the amountsclaimed on these counts, they may file an appropriate petition before theCommission.

1.8 The core business as described in this notification refers to regulated activities ofgeneration or transmission of electricity and does not include other business oractivities of the regulated utility like consultancy, telecommunication, etc.

1.9 'Independent agency' means the agency approved by the Commission by aseparate notification.

1.10 Tariff revisions during the tariff period on account of capital expenditure within theapproved project cost incurred during the tariff period may be entertained by theCommission only if such expenditure exceeds 20% of thre approved cost. In allcases, where such expenditure is less than 20%, tariff revision shall beconsidered in the next tariff period.

1.11 For removal of doubts, it is clarified that the noVms prescribed herein are theceiling norms only and this shall not preclude the Generating Company and otherbeneficiaries from agreeing to improved norms.

1.12 The norms prescribed under these Regulations shall not apply to the GeneratingStations under the control of North East Electric Power Corporation.

120 THE GAZETTE OF INDIA: EXTRAORDINARY [PART III—SEC 4]

1.13 Extra Rupee Liability

(a) Extra rupee liability towards interest payment and loan repayment actuallyincurred, in the relevant year shall be admissible; provided it directly arises out offoreign exchange rate variation and is not attributable to Utility or its suppliers orcontractors. Every utility shall follow the method as per the Accounting Standard-11 (Eleven) as issued by the Institute of Chartered Accountants of India tocalculate the impact of exchange rate variation on loan repayment.

(b) Any foreign exchange rate variation to the extent of the dividend paid out on thepermissible equity contributed in foreign currency, subject to the ceiling ofpermissible return shall be admissible. This as and when paid, may be spreadover the twelve-month period in arrears.

1.14 Tax Escrow Mechanism

(i) The beneficiaries shall maintain an interest Bearing tax escrow account in ascheduled bank. All amounts of interest shall be credited to that account.

(ii) The tax liability shall be estimated two months before the commencement of eachyear and intimated to the beneficiaries. The company shall endeavour tominimize its liability on account of taxes recoverable from SEBs/ beneficiaries.

(iii) Central Sector Utilities (CSUs) shall be authorised to withdraw the amounts forsettling the tax liability on presentation to the escrow holder of a certificate fromthe company's statutory auditors that such amounts are immediately due andpayable to the taxing authority.

(iv) The utilities shall pay into the tax escrow account any refund received from thetaxing authority.

(v) The refunds if any shall not be paid back to the beneficiaries and shall beadjusted in the escrow account. Any balance due or returnable shall be rolledover to the next year.

(vi) The Escrow Accounts shall be reflected in the books of the beneficiaries as theirbank account.

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CHAPTER 2

2.1 DEFINITIONS- Unless the context otherwise requires for the purpose of thischapter,

"Plant Load Factor' or 'PLF' - In relation to a given period, is expressed as thepercentage of total kWh generated at generator terminals to Installed Capacity,expressed in kilowatts (kW) multiplied by number of hours in that period.

'Authority ' means Central Electricity Authority constituted under Section 3 of theElectricity (Supply) Act 1948.

'Auxiliary Energy Consumption'or'AUX1 - In relation to any period, means theratio, expressed as a percentage, of energy in kWh generated at Generator terminalsminus energy in kWh delivered at the Generating Station Switchyard to gross energy inkWh generated at the Generator terminals.

'Availability'- Availability of thermal generating station for any period shall be thepercentage ratio of average Sent Out Capability ( SOC ) for all the time blocks duringthat period and rated SOC of the generating station as per the following formula:

n

Availability ={( £ SOC, /(1-AUX/100)) + CL } x 100/ h x I.C.i = 1

where,I.C. = Installed Capacity of the station in MWSOC, = SOC of the ith time block of the periodn = Number of time blocks during the periodAUX = Normative Auxiliary Energy Consumption as a percentage of gross generation.h = Number of hours during the period ~ n/4CL = Gross MWh of capacity of unit(s) kept closed on account of Generation schedulingorder.

'Block' - In relation to Combined Cycle Generating Station includes Combustionturbine - generator(s), associated Waste Heat Recovery boiler(s), connected SteamTurbine - generator and auxiliaries.

'Commercial Operation Date' or 'COD' - In relation to a Unit means date by which theMaximum Continuous Rating (MCR) or Installed Capacity is demonstrated through asuccessful trial run. The COD of the Generating Station shall be reckoned from theCOD of the last Unit or

''^^'A'0/-^

m THE GAZETTE OF INDIA EXTRAORDINARY [PART III—SEC. 4]

in relation to a Unit or Block of a combined cycle generating station, the date ofsynchronization.

'Declared Capacity' or 'DC - In relation to any period or time block, means thecapability of the Generating Station to deliver ex-bus MWh declared by the generatingcompany.

Explanation: The Declared Capacity shall not exceed the Installed Capacity.

'Generating Station' means Units and balance of plant and,

In relation to Combined Cycle Generating Station means Block(s) and balance of plant.

'Gross Calorific Value' or 'GCV - The heat produced in kCal by complete combustionof one kg. of solid fuel or liquid fuel or one standard cubic meter of gaseous fuel, as thecase may be.

'Gross Station Heat Rate' or 'GHR' - The heat energy in kCal input required togenerate one kWh of electric energy at Generator terminals.

'Installed Capacity' - In relation to a Generating Station means Rated Capacity or thecontracted capacity as the case may be.

'Maximum Continuous Rating' or 'MCR'- In relation to a Unit means the maximumcontinuous output at the generator terminals, guaranteed by the manufacturers at ratedparameters and,

In relation to a Unit or Block of a combined cycle Generating Station means themaximum continuous output at the Generator(s) terminals, guaranteed by themanufacturer with Water/steam injection (if applicable) and corrected to 50 Hz gridfrequency and site conditions.

'Operation and Maintenance Expenses' or 'O&M Expenses' - In relation to a periodmeans the expenditure incurred in operation and maintenance of the generating stationincluding manpower, spares, consumables, insurance and overheads.

"Rated Capacity' - In relation to the Generating Station means the MaximumContinuous Rating (MCR) of a Unit multiplied by number of Units in the GeneratingStation and ,

In relation to the Combined Cycle Generating Station means the Maximum ContinuousRating (MCR) of Block multiplied by the number of Blocks in the Generating Station.

'Sent Out Capability'- Sent Out Capability (SOC) of a Generating Station meansthe capability to deliver ex-bus MWh based on which 'availability' shall be worked out.

SOC for Thermal Stations shall be the DC, with all before-the-fact revisions/updating.

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Notel:

In case of gas turbine/combined cycle stations, the generator shall give* DC forunits/modules on gas fuel and DC for units/modules on liquid fuel separately, and thetwo shall be scheduled separately. Total DC and total SG for the station shall be thesum of the two.

Note 2:

For the gas turbine/combined cycle stations for any time block, the average frequency isbelow 49.52 Hz but not below 49.02 Hz and SG is more than 98.5% of DC, SG shall bedeemed to have been reduced to 98 5% of DC and if the average frequency of the timeblock is below 49.02 Hz and SG is more than 96.5% of DC, SG shall be deemed to havebeen reduced to 96.5% DC.

'Unit' means Steam Generator - Turbine - Generator and their auxiliaries, or,

In relation to Combined Cycle Generating Station, means Combustion Turbine-Generator and auxiliaries.

2.2 The tariff for sale of electricity from Thermal Generating Stations (including Gasand Naphtha based stations) shall comprise of two parts, namely, the recovery of annualCapacity (Fixed) Charges and Energy (Variable) Charges The annual Capacity (Fixed)Charges shall consist of interest on loan capital, depreciation, return on equity, advanceagainst depreciation, operation and maintenance expenses, and interest on workingcapital. The Energy (Variable) Charges shall cover fuel cost.

2.3 Notwithstanding anything contained in this notification,

(a) the operational norms except those relating to "Target Availability" and "PlantLoad Factor", as contained in the existing tariff notifications for individual powerstations issued by the Central Government under proviso to Section 43 A(2) ofthe Electricity (Supply) Act, 1948 in respect of the existing stations of NTPC shallcontinue to apply for those stations.

(b) The operational norms, except those relating to "Target Availability" and "PlantLoad Factor" for the existing and the new stations of NTPC and NLC for whichno tariff notification has been issued by the Central Government but PowerPurchase Agreements (PPAs)/ Bulk Power Supply Agreements (BPSAs) exist onthe date of issue of this notification, shall be governed by the respective PPAs /BPSAs signed by the Generating Company with the beneficiaries.

(c) The Generating Company may approach the Commission for relaxation of"Target Availability" in exceptional circumstances with due justification. TheCommission on being satisfied of the reasons and justification furnished by theGenerating Company may grant such relaxation as may be consideredappropriate

124 THE GAZETTE OF INDIA EXTRAORDINARY |P\iu III—SB- 4]

Provided that no relaxation shall be granted without notice to the parties likely tobe affected by such relaxation.

2.4 Norms of Operation

(i) Target Availability for recovery of full Capacity (Fixed) charges

(a)

(b)

For all thermal Stations except thosecovered under clause (b) belowFor NLC (TPS-II, Stage l&ll) Stations

- 80%- 72%

(ii) Plant Load Factor based on scheduled energy beyond which Incentiveshall be payable

(a)

(b)

For all Thermal Stations exeept thosecovered under clause (b) belowFor NLC (TPS-II, Stage l&ll) Stations

- 77%- 72%

(iii) Gross Station Heat Rate for coal based stations

-During stabilization period -

-Subsequent period

2600 K. Cal/kWh

2500 K. Cal/kWh

In respect of 500 MW units where the boiler feed pumps are electrically operated,the heat rate of 40 K. Cal/kWh shall be reduced from Station Heat Rate.

In case of lignite fired power stations, the Gross Station Heat rates indicatedabove shall be corrected using multiplying factors as follows:

(a) For lignite having 50% moisture: Multiplying factor qf 1.1Q(b) . For lignite having 40% moisture: Multiplying factor of 1 .QJ(c) For lignite having 30% moisture: Multiplying factor of 1.04(d) For other values of moisture content, multiplying factor shall be pro-

rated.

(iv) Gross Station Heat Rate for gas and Naphtha based stations

-For open cycle-For combined cycle -

2900 K. Cal/kWh2000 K. Cal/kWh

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(v) Secondary fuel oil consumption for coal based stations

-During stabilization period-Subsequent period

5 ml/kWh3.5 ml/kWh

(vi) Auxiliary Energy ConsumptionWith cooling tower

(a) Coal based stations

200 MW series500 MW series-Steam driven pumps-Electrically driven pumps

9.5 per cent

8.0 per cent9.5 percent

Without cooling tower

9.0 per cent

7.5 percent9.0 per cent

(b) Gas and Naphtha based stations

Combined cycleOpen cycle

3.0 per cent1.0 percent

During the stabilization period, normative auxiliary consumption shall bereckoned at 0.5 per cent over and above the figures specified at (a) and (b)above.

(vii) Date of Commercial Operation

The date of commercial operation of individual units shall be reckoned asfollows:-

Thermal (coal/lignite) Station: Not exceeding 180 days from the

date of synchronization.

Gas and Naphtha based Station: From the date of synchronization.

(viil) Stabilization period

Stabilization period commencing from the date of commercial operation shall bereckoned as follows:

(a) Thermal (coal/lignite) station - 180 days(b) Open cycle gas and Naphtha based station - 90 days(c) Combined cycle gas and Naphtha based station - 90 days


bxpianatlons-

1. For the purpose of calculating the tariff, the operating parameters, i.e."StationHeat Rate", "Secondary Fuel Oil Consumption" and "Auxiliary Consumption" shallbe determined on the basis of actuals or norms, whichever is lower.

25 Capital Expenditure

The capital expenditure of the project shall be financed as per the approved financialpackage set out in the techno-economic clearance of the Authority or as approved by anappropriate independent agency as the case may be. The project cost shall includereasonable amount of capitalized initial spares.

The actual capital expenditure incurred on completion of the project shall form the basisfor fixation of tariff. Where the actual expenditure exceeds the approved project cost, theexcess expenditure as allowed by the Authority or an appropriate independent agencyshall be considered for the purpose of fixation of tariff.

Provided that such excess expenditure is not attributable to the Generating Company orits suppliers or contractors;

Provided further that where a Power Purchase Agreement entered into between theGenerating Company and the beneficiary provides a ceiling on capital expenditure, thecapital expenditure shall not exceed such ceiling for computation of tariff.

2.6 Infirm Power

In respect of infirm power, that is sale of electricity prior to commercial operation of theunit, any revenue from such sale (other than the fuel cost), shall be taken as reductionin capital expenditure and not as net revenue.

2.7 Payment of Capacity (Fixed) Charges

The Capacity Charges shall be computed on the following basis and its recovery shallbe related to Availability.

a) Interest on loan capital

Interest on loan capital shall be computed on the outstanding loans, duly takinginto account the schedule of repayment, as per the financial package approvedby the Authority or an appropriate independent agency, as the case may be.

b) Depreciation:

(i) The value base for the purpose of depreciation shall be the historical cost of theasset.

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Depreciation shall be calculated annually as per straight line method at the rate ofdepreciation as prescribed in the Schedule attached to this notification asAppendix-ll.

Provided that the total depreciation during the life of the project shall not exceed90% of the approved original cost. The approved original cost shall includeadditional capitalization on account of foreign exchange rate variation also.

(iii) Advance against depreciation (AAD), in addition to allowable depreciation, shallbe permitted wherever originally scheduled loan repayment exceeds thedepreciation allowable as per schedule and shall be computed as follows:

AAD = Originally scheduled loan repayment amount subject to a ceiling of 1/12th

of original loan amount minus Depreciation as per schedule

(iv) On repayment of entire loan, the remaining depreciable value shall be spreadover the balance useful life of the asset.

(v) Depreciation shall be chargeable from the first year of operation. In case ofoperation of the asset for part of the year, depreciation shall be charged on pro-rata basis.

(vi) Depreciation against assets relating to environmental protection shall be allowedon case-to-case basis at the time of fixation of tariff subject to the condition thatthe environmental standards as prescribed have been complied with during theprevious tariff period.

(c) Return on Equity;

Return on equity shall be computed on the paid up and subscribed capital andshall be 16 percent of such capital.Explanation:-

Premium raised by the Generating Company while issuing share capital andinvestment or internal resources created out of free reserve of the existing utility,if any, for the funding of the project, shall also be reckoned as paid up capital forthe purpose of computing the return on equity, provided such premium amountand internal resources are actually utilised for meeting the capital expenditure ofthe generating station and forms part of the approved financial package as setout in the techno-economic clearance accorded by the Authority or approved byan appropriate independent agency, as the case may be.

(d) Operation and Maintenance expenses including insurance

(i) Operation and Maintenance expenses including insurance (hereinafter referred toas O&M expenses) for the existing stations of NTPC and NLC which have been

128 TIIE GAZETTE OF INDIA . EXTRAORDINARY [P \M III—SI . _ 4 |

in operation for 5 years or more in the base year of 1999-2000, shall be derivedon the basis of actual O&M expenses, excluding abnormal O&M expenses, if any,for the years 1995-96 to 1999-2000 duly certified by the statutory auditors.

The average of actual O&M expenses for the years 1995-96 to 1999-2000considered as O&M expenses for the year 1997-98 shall be escalated twice atthe rate of 10 percent per annum to arrive at O&M expenses for the base year1999-2000, as given below:

BO&M2000, = AVO&M, x (1,10)2

Where BO&M2000, = Base level O&M expenses for 1999-2000 for ithgenerating station

AVO&M, = Average O&M expenses from 1995-96 to 1999-2000 for the ithgenerating station

The Base O&M expenses for the year 1999-2000 shall be further escalated atthe rate of 6 percent per annum to arrive at permissible O&M expenses for therelevant year.

(ii) In the case of new thermal stations of NTPC and NLC which have not been inexistence for a period of five years, the Base O&M expenses shall be fixed at 2.5percent of the actual capital cost as approved by the Authority or an appropriateIndependent agency, as the case may be, in the year of commissioning and shallbe escalated at the rate of 10 percent per annum for subsequent years to arriveat O&M expenses for the base year 1999-2000 level. Thereafter the Base O&Mexpenses shall be further escalated at the rate of 6 percent per annum to arriveat permissible O&M expenses for the relevant year.

(iii) For plants commissioned during the tariff period (2001-02 to 2003-04), the BaseO&M expenses shall be fixed at 2.5 percent of actual capital cost as approved bythe Authority or an appropriate Independent agency, as the case may be, in theyear of commissioning and shall be subject to an annual escalation of 6 per centper annum from the subsequent year.

(iv) The escalation factor of 6 percent per annum shall be used to revise the basefigure of O&M expenses. A deviation of the escalation factor computed from theactual inflation data that lies within 20 percent of the above notified escalationfactor of 6 percent (which works out to be 1.2 percentage points on either side of6 percent) shall be absorbed by the utilities/beneficiaries. In other words if theescatation factor computed from the observed data lies in the range of 4.8 to 7.2percent, this variation should be absorbed by the utilities. Any deviations beyondthis limit shall be adjusted on the basis of the actual escalation factor arrived at byapplying a weighted price index of CPI for industrial workers (CPIJW) and anindex of select components of WPI (WPIOM) as per formula given in note belowclause (v) herein below, for which the utility shall approach the Commission witha petition.

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(v) The escalation of yearly expenses from the published data for the tariff periodshall be computed as follows:

0.4 x INFLCPI + 0.6 x INFLWPIOMwhere:

INFLCPI = Annual Average Inflation in CPIJW

INFLWPIOM = Annual Average Inflation in WPIOM

Where as CPIJW is directly published by the Government, WPIOM shall becomputed from disaggregated data on wholesale prices published by Ministry ofIndustry.

Note

The special index of wholesale prices for power generating utilities (WPIOM) maybe obtained as a weighted average of relevant components selected fromdisaggregated WPI series (1993-94=100) as given below:.

COMMODITIES

1. Lubricants

2. Cotton Cloth

3. Jute, Hemp and Mesta Cloth

4. Paper & Paper Products

5. Rubber & Plastic Products

6. Basic Heavy Inorganic Chemical

7. Basic Heavy Organic Chemical

8. Paints Varnishes & Lacquers

9. Turpentine, Synthetic Resins, Plastic materials etc

10.Matches Explosives & Other Chemicals

11. Non-Metallic Mineral Products

12. Basic Metals Alloys & Metals Products

13. Machinery & Machine Tools

14. Transport Equipment & Parts

All the Above (WPIOM)

WEIGHTS

0.16367

0.90306

0.37551

2.04403

2.38819

1.44608

0.45456

0.49576

0.74628

0.94010

2.51591

8.34186

8.36331

4.29475

33.47307

'MX GI/2001- 17

130 THE GAZETTE OF INDIA: EXTRAORDINARY | PAR I III—SEC. 41

yU wiWPIiWPIOM = ~=rr , where WPH is the wholesale price index of the ith

> wi

commodity and wi is the respective weight

Note

The data used for computing the permissible O&M expenses shall be certified bythe statutory auditors,

(e) Interest on Working Capital

Interest on Working Capital shall cover:

(i) Fuel cost for one month and reasonable fuel stocks as actually maintained butlimited to fifteen days for pit head stations and thirty days for non pit-headstations, corresponding to the "Target Availability"

(ii) sixty days stock of secondary fuel oil, corresponding to the "Target Availability"

(iii) Operation and Maintenance expenses (cash) for one month;

(iv) maintenance spares at actuals subject to a maximum of one per cent of thecapital cost but not exceeding one year's requirements less value of one fifth ofinitial spares already capitalized for first five years;

(v) receivables equivalent to two months' average billing for sale of electricitycalculated on Target Availability"; and

(vi) The interest rate for this purpose shall be the cash-credit rates prevailing at thetime of tariff filing.

2.8 Full Fixed Charges shall be recoverable at 'Target Availability" specified inclause 2.4(i). Recovery of Capacity (Fixed) Charges below the level of Target Availabilityshall be on pro-rata basis. At zero availability, no Capacity Charge shall be payable.

2.9 The payment of Capacity Charges shall be on monthly basis in Rs/kW/Month inproportion to the allocated capacity.

_ ! ! !

2.10 Energy Charges

(i) For stations covered under ABT

Energy (variable) Charges shall cover fuel costs and shall be worked out on the basis ofpaise per kWh on ex-bus energy scheduled to be sent out from the generating station asper the following formula:

Energy Charges = Rate of Energy Charges X Scheduled Generation (ex-bus)

(li) For stations other than those covered under ABT

Energy (variable) charges shall cover fuel costs and shall be worked out on the basis ofpaise per kWh on ex-bus energy delivered / sent out from the generating station as perthe following formula:

Energy Charges = Rate of Energy Charges X Energy delivered (ex-bus)

Where,

Rate of Energy Charges (REC) shall be the sum of the cost of normativequantities of primary and secondary fuel for delivering ex-bus one kWh of electricity andshall be computed as under:

PpX(Qp)n + P3X(Qs)n

(1-(AUX))

Where,

Pp = Price of primary fuel namely coal or Lignite or Gas orNaphtha in Rs/Kg

(Qp)n = Quantity of primary fuel required for generation of one kWh ofelectricity at generator terminals in Kg, and shall be computed onthe basis of Gross Station Heat Rate (less heat contributed bysecondary fuel oil for coal/lignite based stations) and gross calorificvalue of coal/lignite or gas or Naphtha actually fired.

Ps = Price of Secondary fuel oil in Rs./ml,

(Qs)n = Quantity of Secondary fuel oil as per clause 2.4 (v),

(AUX)= Auxiliary Energy Consumption as per clause 2.4 (vi) ,as the casemay be.

112 THE GAZETTE OF INDIA EXTRAORDINARY |P \ IM III—Sir 4|

Adjustment on account of variation in price or heat value of fuels

Initially Gross Calorific Value of coal/lignite or gas or naphtha shall be taken asper actual in the preceding three months. Any variation shall be adjusted on amonth to month basis on the basis of Gross Calorific Value of coal/lignite or gasor naphtha actually received and burnt and actual landed cost incurred by theGenerating Company for procurement of coal/lignite, oil, or gas or Naphtha as thecase may be. No separate petition need to be filed with the Commission for fuelprice adjustment. In case of any disputes an appropriate petition in accordancewith CERC (Conduct of Business Regulations) 1999 shall be filed before theCommission.

2.11 Incentive

(i) An incentive shall be allowed to be recovered @ 50% of the fixed cost/kWh atnormative PLF for generation between normative PLF and up to 90% PLF,subject to a ceiling of 21.5 paise/kWh.

(ii) For generation beyond 90% PLF, incentive shall be allowed to be recovered @50% of the incentive payable under the preening clause.'

2.12 Tax on income

Tax on income from core-activity of the Generating Company, if any, is to be computedas an expense and shall be recoverable by the Generating Company from thebeneficiaries.

Any under or over recoveries of tax shall be adjusted every year on the basis ofcertificate of statutory auditors.

Provided that:

i) Tax on any income streams other than income from core-activity, if any, accruingto the Generating Company shall not constitute as a pass through component inthe tariff. Tax on such other income shall be payable by the GeneratingCompany.

ii) The station-wise profit before tax as estimated for a year in advance shallconstitute the basis for distribution of the Corporate tax liability to all the stations.

iii) The benefit of Tax Holiday where applicable as per the provisions of the IncomeTax Act, 1961 shall be passed on to the respective stations.

iv) The credit for carry forward losses, if any, shall be given in an equitable mannerfor all stations.

133

v) The tax allocated to stations shall be charged to the beneficiaries in the sameproportion as annual fixed charges.

2.13 Development Surcharge

The Generating Company shall be entitled to a Development Surcharge of 5% on everybill for Fixed Charges raised by it in respect of generation at regional level. TheDevelopment Surcharge shall not be payable for plants operating exclusively within aState. The levy of Development Surcharge shall be subject to the following conditions:

(a) Surcharge collected by the utilities shall be kept in a separate bank account andmay be invested in securities of recognised infrastructure funds like IDFC or IDBITax free bonds and income therefrom shall also be credited to that bankaccount;

(b) Tfte Generating Company shall maintain separate accounts in its books andfct the balance in the Development Surcharge Reserve Account and thestment represented against the same in the balance sheet;

(c) On the purchase of the undertaking or on any other- such contingency thereserve and the corresponding investments shall be transferred to the successorundertaking to subserve the same objective of fresh capacity addition;

(d) The fund can be made use of to the extent of 1/3rd of the equity requirement forany capacity addition in the respective region and the balance 2/3rd beingprovided by the Generating Company;

(e) To the extent to which the fund is used as equity in any new capacity addition,pro rata reduction for the return on equity in the determination of tariff of the newproject shall be allowed;

(f) A certificate in the prescribed form regarding the use of these funds shall be filedwith, the Commission every year, duly verified by the statutory auditors of theGenerating Company;

(g) The use ese funds in any other manner shall be only with the prior approvalof the Commission either on petition or suo motto for which the due process asper the CERC (Conduct of Business) Regulations shall be followed.

2.14 Unschedule Interchange(UI) Charges applicable to stations covered underABT

Variation in actual generation/drawal and scheduled generation/drawal shall beaccounted for through Unscheduled Interchange (Ul)Charges. Ul for Generating Stationshall be equal to its actual generation minus its scheduled generation. Ul for beneficiaryshall be equal to its total actual drawal minus its total scheduled drawal. Ul shall be

134 THE GAZETTE OF INDIA: EXTRAORDINARY [P.\RT III—SEC 4]

worked out for each 15 minute time block. Charges for all Ul transactions shall be basedon average frequency of the time block and the following rates shall apply:

Average Frequency of time block50.5 Hz and aboveBelow 50.5 Hz and up to 50.48 HzBelow 49.04 Hz and up to 49.02 HzBelow 49.02 HzBetween 50.5 Hz and 49.02 Hz

Ul Rate (Palse per kWh)0.005.60

414.40420.00

linear in 0.02 Hz step

(Each 0.02 Hz step is equivalent to 5.6 paise /kWh within the above range)

The above average frequency range and Ul rates are subject to change through aseparate notification from time to time.

The provisions relating to Ul shall come into force in accordance with the following timeschedule, after implementation of ABT.

Southern RegionEastern RegionNorthern RegionWestern Region

01-04-200101-05-200101-06-200101-08-2001

2.15. R&kaie.

For payment of bills through letter of credit, a rebate of 2.5 per cent shall be allowed. Ifthe payments are made by a mode other than through letter of credit but within a periodof one month of presentation of bills by the Generating Company, a rebate of 1 per centshall be allowed.

2.16 Late Payment Surcharge

In case the payment of bills by the beneficiary (ies) is delayed beyond a period of 1month from the date of billing a late payment surcharge at the rate of 1.5 percent permonth shall be levied by the Generating Company.

2.17 Scheduling:

(This shall be read with Chapter 7 of IEGC regarding procedure forscheduling).

Methodology of Scheduling and Calculating Availability shall be as under:

(i) Each day starting from 00.00 hrs. shall be divided into 96 time blocks of 15minutes intervals.

135

(ii) The generator shall make an advance declaration of capability of its generatingstation. The declaration shall be for that capability which can be actually madeavailable.

The declaration shall be for the capability of the Generating Station, to deliver ex-bus MWh for each time block of the day. The capability as declared1 by generator,referred to as DC, would form the basis of generation scheduling.

(iii) While making or revising their declaration of capability, the generator shallensure that its declared capability during peak hours is not less than that duringother hours. However, exception to this rule shall be allowed in case oftripping/re-synchronisation of units as a result of forced outage of units.

(iv) The generation scheduling shall be done in accordance with the operatingprocedure, as stipulated in the IEGC.

(v) Based on the declaration of the generator, RLDC shall communicate their sharesto the beneficiaries out of which they shall give their requisitions.

(vi) Based on the requisitions given by the beneficiaries and taking into accounttechnical limitations on varying the generation and also taking into accounttransmission system constraints, if any, RLDC shall prepare the economicallyoptimal generation schedules and drawal schedules and communicate the sameto the generator and the beneficiaries.

RLDC shall also formulate the procedure for meeting contingencies both in thelong run and in the short run (Daily scheduling).

(vii) The scheduled generation and actual generation shall be at the generator's ex-bus. For beneficiaries, the scheduled and actual net drawals shall be at theirrespective receiving points.

(viii) For calculating the net drawal schedules of beneficiaries, the transmission lossesshall-be apportioned to their drawals.

(ix) Scheduled generation of the generating station for each time block, referred to asSG shall mean the Scheduled MWh to be Sent Out Ex-bus from the GeneratingStation.

(x) Actual generation of the station for each time block, referred to as AG, shall meanactual MWh actually Sent Out Ex-bus from the generating station.

(xi) In case of forced outage of a unit, RLDC shall revise the schedules on the basisof revised declared capability. The revised schedules shall become effective fromthe 4th time block, counting the time block in which the revision is advised by the

136 THE GAZETTE OF INDIA EXTRAORDINARY | P u< r III—Sec 4]

generator to be the first one. The revised declared capability shall also becomeeffective from the 4th time bock.

(xii) In the^eyent of bottleneck in evacuation of power due to any constraint, outage,fai|" ^ " ation in the transmission system, associated switchyard andgul foed by CTU (as certified by RLDC) necessitating reduction ingei DC shall revise the schedules which shall become effective fromthe 41$fi#<Ji$lock, counting the time block in which the bottleneck in evacuationof power has taken place to be the first one. Also, during the first, second andthird time blocks of such an event, the scheduled generation of the station shallbe deemed to have been revised to be equal to actual generation and also thescheduled drawals of the beneficiaries shall be deemed to have been revised tobe equal to their actual drawals.

(xiii) In case of any grid disturbance, scheduled generation of all the GeneratingStations and scheduled drawal of all the beneficiaries shall be deemed to havebeen revised to be equal to their actual generation/drawal for all the time blocksaffected by the grid disturbance. Certification of grid disturbance and its durationshall be done by RLDC.

(xiv) Revision of declared capability by the generator^) and requisition bybeneficiary(ies) for the remaining period of the day shall also be permitted withadvance notice. Revised schedules/declared capability in such cases shallbecome effective from the 6th time block, counting the time block in which therequest for revision has been received in RLDC to be the first one.

(xv) If, at any point of time, RLDC observes that there is need for revision of theschedules in the interest of better system operation, it may do so on its own andin such cases, the revised schedules shall become effective from the 4th timeblock, counting the time block in which the revised schedule is issued by RLDC tobe the first one.

(xvi) Generation schedules and drawal schedules issued/revised by RLDC shallbecome effective from designated time block irrespective of communicationsuccess.

(xvii) For any revision of scheduled generation, including post facto deemed revision,there shall be a corresponding revision of scheduled drawals of the beneficiaries.

(xviii) A procedure for recording the communication regarding changes to schedulesduly taking into account the time factor shall be evolved by CTU.

2.18 Demonstration of Declared Capability

The Generating Company may be required to demonstrate the declared capability of itsGenerating Station as and when asked by the RLDC of the region in which theGenerating Station is situated. In the event of generator failing to demonstrate thedeclared capability, the capacity charges due to the generator shall be reduced as a

137

measure of penalty. The quantum of penalty for the first mis-declaration for anyduration/block in a day shall be the charges corresponding to two days Fixed Charges.For the second mis-declaration the penalty shall be equivalent to Fixed Charges for fourdays and for subsequent mis-declarations, the penalty shall be multiplied in thegeometrical progression as per the order of the Commission.

Note:

In case it is observed that the declaration of its capability by the generator is on lowerside and the actual generation is more than DC, then Ul charges due to the generatoron account of such extra generation shall be reduced to zero and the amount shall becredited towards Ul account of beneficiaries in the ratio of their capacity share in thestation.

2.19 Metering and Accounting

Metering arrangements, including installation, testing and operation and maintenance ofmeters and collection, transportation and processing of data required for accounting ofenergy exchanges and average frequency on 15 minute time block basis shall beprovided by the POWERGRID/RLDCs. Processed data of the-meters along with datarelating to declared capability and schedules etc., shall be supplied by RLDCs to REBsand REBs shall issue the Regional Accounts for energy as well as Ul charges onmonthly basis. The Ul accounting procedures shall be governed by the orders of theCommission.

2.20 Billing and Payment of Capacity Charges

Billing and Payment of Capacity Charges shall be done on a monthly basis in thefollowing manner:

(i) Each beneficiary shall pay the Capacity Charges in proportion to its percentageshare in total saleable capacity of the station. Saleable capacity shall mean totalcapacity minus free capacity to Home State(s), if any.

Note

Allocation of total capacity of Central Sector Statipns is made by CentralGovernment from time to time which also has an unallocated portion. Allocationof the unallocated portion shall be made by the Central Government from time totime, for the total unallocated capacity. The total capacity share of anybeneficiaries would be sum of its capacity share plus allocation out of theunallocated portion, In case of no specific distribution of unallocated power by theCentral Government, the unallocated power shall be added to the allocatedshares in the same proportion as the allocated shares.

' M K ( , l 2 < ] u | IX

138 THE GAZb'iTb OF INDIA: EXTRAORDINARY [PART III—SEC 4]

Note 2

The beneficiaries may propose surrendering part of their allocated share to otherStates within/outside the region. In such cases, depending upon the technicalfeasibility of power transfer and specific agreements reached by the generatingcompany with other States within/outside the region for such transfers, the sharesof beneficiaries may be re-allocated by the Central Generating for a specificperiod. When such re-allocations are made, the beneficiaries who surrender theshare shall not be liable to pay capacity charges for the surrendered share. Thecapacity charges for the capacity surrendered and reallocated as above shall bepaid by the State(s) to whom the surrendered capacity is allocated. Except for theperiod of reallocation of capacity as above, the beneficiaries of the generatingstation shall continue to pay the full fixed charges as per allocated capacityshares.

(ii) The beneficiaries shall have full freedom for negotiating any transaction forutilisation of their capacity shares. In such cases, the beneficiary havingallocation in the capacity of the generating station shall be liable for full paymentof Capacity Charges and Energy Charges (including that for sale of power underthe transactions negotiated by them) for all its scheduled and unscheduledtransactions from its capacity share.

(iii) If there is any capacity which remains un-requisitioned during day-to-dayoperation, RLDC shall advise all beneficiaries in the region and the other RLDCsso that such capacity may be requisitioned through bilateral arrangements withthe concerned generating company/beneficiary(ies) under intimation to theRLDC.

(iv) The Capacity Charges shall be paid by the beneficiary(ies) including thoseoutside the Region to the generator every month in accordance with the followingformula:

Total Capacity Charges payable to the generator for the:

1s t

ond

3rd

4th

5th

6m

7th

8th

9th

101

111

121

month = (1xACC1)/12month = (2XACC2 - 1XACC1)/12month = (3xACC3 - 2XACC2)/12month = (4xACC4 -£xACC3)/12month = (5XACC5 - 4xACC4)/12month = (6XACC5 - 5xACC5)/12month = (7XACC7 - 6xACC6)/12month = (8xACC8 - 7xACC7)/12month = (9xACC9 - 8xACC8)/12

th month = (10xACC10 - 9xACC9)/12th month = (11xACC11 - 10xACC10)/12lh month = (12xACC12 - 11xACC11)/12

139

and, Each beneficiary having firm allocation in capacity of the generating station shallpay for the ;

1SI

3rd

4th

5th

6th

7th

8th

9th

10'11'12'

month = [ ACC1 x WB1 ]/1200month = [2XACC2 x WB2 - 1XACC1X WB1]/1200-month = (3xACC3 x WB3 - 2XACC2 x WB2]/1200month = (4xACC4 x WB4 - 3xACC3 x WB3J/1200month = (5XACC5 x WB5 - 4xACC4 x WB4]/1200month = (6XACC5 x WB6 - 5xACC5 x WB5]/1200month = (7XACC7 x WB7 - 6xACC6 x WB6J/1200month = (8xACC8 x WB8 - 7xACC7 x WB7J/1200month = (9xACC9 x WB9 - 8xACC8 x WB8]/1200h month = (10xACC10 x WB10- 9xACC9 x WB9]/1200h month = (11xACC11 x WB11- 10xACC10x WB10]/1200h month = (12xACC12 x WB12- 11xACC11x WB 11J/1200

Where,

ACC1, ACC2, ACC3, ACC4, ACC5 ACC6, ACC7, ACC8, ACC9, ACC10, ACC11 andACC12 are the amount of Annual Capacity Charge corresponding to 'Availability' for thecumulative period up to the end of 1st, 2nd 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th and 12th

months respectively.

And, WB1, WB2, WB3, WB4, WB5, WB6, WB7, WB8, WB9, WB10, WB11 and WB12are the weighted average of percentage allocated capacity share of the beneficiaryduring the cumulative period up to 1st. 2nd 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th 11th and 12th

month respectively.

And,

Year means the financial year.

When the month of changeover to tariff as per this notification is not the first month of afinancial year, then 'Availability' for the part of the year prior to switchover shall be"deemed PLF" determined on the basis of actual generation plus backing down andweighted average of percentage allocated capacity share of the beneficiary shall beequal to his total drawal from station (as per regional energy accounting) expressed aspercentage of total ex-bus generation. Payment of capacity charges for the period priorto switchover shall be regulated as per tariff applicable till the date of switchover andpro-rata incentive, as applicable, shall be paid. Payment of Capacity Charges for themonth after the switchover to tariff as per this order shall be as per the formula givenabove.


CHAPTER 3

HYDRO POWER GENERATING STATIONS

3.1 Definitions: Unless the context otherwise requires for the purpose of thischapter,

' Actual energy ' means the quantum of energy actually generated by the plantover a specified period (day, year, etc.). The measurement of Actual energy shallbe "ex-bus" and shall reflect the energy sent out at the station bus bars.

1 Authority ' means Central Electricity Authority constituted under Section 3 ofthe Electricity (Supply) Act 1948.

1 Auxiliary Consumption ' means the quantum of energy consumed byauxiliary equipment of the project.

'Capacity Index' means the average of the daily capacity indices over one year.

1 Daily Capacity Index' means percentage of the declared capacity to themaximum available capacity for the day.

Declared Capacity (MW)Daily Capacity Index = x 100

Maximum Available Capacity (MW)

'Declared capacity' (MW) means the capacity to be available from the plantover the peaking hours of the next day, as declared by the generator. Thepeaking hours shall be not less than 3 hours within a 24- hour period,

1 Declared Energy1 means amount of energy to be generated at the plant overthe next 24-hour period, as declared by the generator.

' Deemed Generation ' means the energy which a generating station wascapable of generating but could not generate due to grid/power system conditionsbeyond the control of generator and it results in spillage of water.

'Design Energy' means the quantum of energy which could be generated in a90 percent dependable year with 95 percent installed capacity of the station.

[ "HFT III—'gP'g4] *tTCft ^ TWtt : gffnVR"T 141

Explanation - If the total energy generation in the years for which hydrologicaldata is available (say N years) is arranged in descending order, the [(N + 1) x0.9]th year would represent the 90 percent dependable year. The 90 per centdependable year is a year in which the annual energy generation has the

142 THE GAZETTE OF INDIA EXTRAORDINARY [ P M U I I I — Sn 4]

' Saleable Primary energy ' means the quantum of primary energy available forsale after allowing for free energy to the home state.

' Saleable Secondary energy ' means the quantum of secondary energyavailable for sale after allowing for free energy to the home state.

' Scheduled energy ' means the quantum of energy to be generated at the plantover the next 24-hour period, as scheduled by the RLDC.

1 Secondary Energy ' means the quantum of energy generated in excess of thedesign energy on an annual basis in the station.

1 Station ' means a hydro generating station having an installation of one ormore hydro generating units, including reversible units

3.2 Norms of Operation:

The norms of operation shall be as under:

(i) Normative Capacity Index = 85 percent

(ii) Auxiliary consumption :

a) Surface hydro stations with ^rotating exciters mounted on the generatorshaft = 0.2% of energy generated

b) Surface hydro stations with static excitation system= 0.5% of energy generated

c) Underground hydro stations with rotating exciters mounted on thegenerator shaft - 0.4% of energy generated

d) Underground hydro stations with static excitation system

= 0.7% of energy generated

(iii) Transformation losses

(from generation voltage to transmission voltage)

0.5 percent of energy generated,

(iv) Date of Commercial Operation:

Not exceeding 15 days from the date of synchronization.

143

3.3 Capital Expenditure

The capital expenditure of the project shall be financed as per the approved financialpackage set out in the tech no-economic clearance of the Authority or as approved by anappropriate independent agency, as the case may be. The project cost shall includereasonable amount of capitalized initial spares.

The actual capital expenditure incurred on completion of the project shall form the basisfor fixation of tariff. Where the actual expenditure exceeds the approved project cost, theexcess expenditure as allowed by the Authority or an appropriate independent agencyshall be considered for the purpose of fixation of tariff.

Provided that such excess expenditure is not attributable to the Generating Company orits suppliers or contractors;

Provided further that where a Power Purchase Agreement entered into between theGenerating Company and the beneficiary provides a ceiling on capital expenditure, thecapital expenditure shall not exceed such ceiling for computation of tariff.

3.4 Infirm power

Any revenue from sale of infirm power shall be taken as reduction in capital expenditureand not as net revenue.

3.5 Computation of Annual Charges

The two-part tariff for sale of electricity from a hydro power station shall comprise therecovery of Annual Capacity Charge and Primary Energy Charges. The charges for astation shall be regulated as follows:

3.5.1 Capacity Charges

The Capacity Charge shall be computed on the following basis.

Capacity Charge = (Annual Fixed Costs- Primary Energy Charge)

Where,Annual Fixed Costs (AFC) shall be as follows:

AFC = IOL + DEP + ROE + O&M +IWCWhere,IOL = Interest on Loan CapitalDEP = Depreciation and Advance against depreciationROE = Return on equity

] 4 4 T H E G A Z E T T E O F I N D I A • E X T R A O R D I N A R Y [ P A R T i n — S E C 4 ]

O&M = i£ Operation & Maintenance expensesIWC = Interest on working capital

When the capacity charge is negative, this amount shall be set to zero *

(a) Interest on loan capital

Interest on loan capital shall be computed on the outstanding loans duly takinginto account the schedule of repayment, as per the financial package approvedby the Authority or an appropriate independent agency, as the case may be.

(b) Depreciation

(i) The value base for the purpose of depreciation shall be the historical cost of theasset.

(ii) Depreciation shall be calculated annually as per straight line method at the rateof depreciation as prescribed in,the Schedule attached to this notification asAppendlx-ll.

Provided that the total depreciation during the life of the project shall not exceed 90% ofthe approved original cost. The approved original cost shall include additionalcapitalization on account of foreign exchange rate variation also.

(iii) Advance against depreciation (AAD), in addition to allowable depreciation, shallbe permitted wherever originally scheduled loan repayment exceeds thedepreciation allowable as per schedule and shall be computed as follows:

AAD ~ Originally scheduled loan repayment amount subject to a ceiling of 1/12th oforiginal loan amount minus Depreciation as per schedule

(iv) On repayment of entire loan, the remaining depreciable value shall be spreadover the balance useful life of the asset.

(v) Depreciation shall be chargeable from the first year of operation. In case ofoperation of the asset for part of the year, depreciation shall be charged on pro-rata basis.

(vi) Depreciation against assets relating to environmental protection shall be allowedon case-to-case basis at the time of fixation of tariff subject to the condition thatthe environmental standards as prescribed have been complied with during theprevious tariff period.

(c) Return on Equity:

Return on equity shall be computed on the paid up and subscribed capital andshall be 16 percent of such capital.

145

Explanation:

Premium raised by the Generating Company while issuing share capital andinvestment of internal resources created out of free reserve of the existing utility,if any, for the funding of the project, shall also be reckoned as paid up capital forthe purpose of computing the return on equity, provided such premium amountand internal resources are actually utilized for meeting the capital expenditure ofthe power generation project and forms part of the approved financial package asset out in the techno-economic clearance accorded by the Authority or approvedby an appropriate independent agency, as the case may be.

(d) Operation and Maintenance expenses

(i) The Operation and Maintenance expenses including insurance (hereinafterreferred to as O&M expenses) for the existing stations of NHPC which have beenin operation for 5 years or more in the base year of 1999-2000 shall be derivedon the basis of actual O&M expenses, excluding abnormal O&M expenses if anyfor the years 1995-96 to 1999-2000, duly certified by the statutory auditors.

The average of actual O&M expenses for the years 1995-96 to 1999-2000considered as O&M expenses for the year 1997-98 shall be escalated twice atthe rate of 10 percent per annum to arrive a. O&M expenses for the Base year1999-2000, as given below:

BO&M2000, = AVO&M, X(1.10)2

Where

BO&M2000, = Base level O&M expenses for 1999-2000 for ithgenerating station.

AVO&M, = Average O&M expenses from 1995-96 to 1999-2000 for the ith generating station.

The Base O&M expenses for the year 1999-2000 shall be escalated further at therate of 6 percent per annum to arrive at permissible O&M expenses for therelevant year.

(ii) In case of new hydro stations of NHPC, which have not been in existence for aperiod of five years, the Base O&M expenses shall be fixed at 1.5 per cent of theactual capital cost as approved by the Authority or an appropriate Independentagency, as the case may be in the year of commissioning and shall be escalatedat the rate of 10 percent per annum from the subsequent year to arrive at O&Mexpenses for the base year 1999-2000. The Base O&M expenses shall befurther escalated at the rate of 6 percent per annum to arrive at permissible O&Mexpenses for the relevant year.

'UK HI 2U0I I1;

146 _ _ ^ _ _ THE GAZETTE OF INDIA EXTRAORDINARY [PAKI HI—Si*\ 4]

(iii) For plants commissioned during the tariff period (2001-02 to 2003-04), the BaseO&M expenses shall be fixed at 1.5 percent of the actual capital cost as approvedby the Authority or an appropriate Independent agency, as the case may be in theyear of commissioning and shall be subject to an annual escalation of 6 percentper annum for the subsequent year.

(iv) The escalation factor of 6 percent per annum shall be used to revise the basefigure of O&M expenses. A deviation of the escalation factor computed from theactual inflation data that lies within 20 percent of the above notified escalationfactor of 6 percent (which works out to be 1.2 percentage points on either side of6 percent) shall be absorbed by the utilities/beneficiaries. In other words if theescalation factor computed from the observed data lies in the range of 4.8 to 7.2percent, this variation should be absorbed by the utilities. Any deviation beyondthis limit shall be adjusted on the basis of the actual escalation factor arrived at byapplying a weighted price index of CPI for industrial workers (CPIJW) and anindex of select components of WPI (WPIOM) as per formula given in note 2 toclause (v) below, for which the utility shall approach the Commission with apetition.

(v) The escalation of yearly expenses from published data for the tariff period shallbe as below:

Escalation = 0.55 X Infl CPI + 0.45 X Infl WPIOM

Where

Infl CPI = Annual Average Inflation in CPI J W

Infl WPIOM = Annual Average Inflation in WPIOM

Note 1

Where as CPI J W is directly published by the Government, WPIOM shall be computedfrom disaggregated data on wholesale prices published by Ministry of Industry.

Note 2

WPIOM may be obtained as a weighted average of relevant components selected fromdisaqqreoated WPI series (1993-94=100) as qiven below:

COMMODITIES

1. Lubricants

2. Cotton Cloth

WEIGHT

0.16367

0.90306

147

3. Jute, Hemp and Mesta Cloth



6. Basic Heavy Inorganic Chemical

7. Basic Heavy Organic Chemical


9. Turpentine, Synthetic Resins, Plastic materials etc

10.Matches Explosives & Other Chemicals





All the Above (WPIOM)

0.37551

2.04403

2.38819

1.44608

0.45456

0.49576

0.74628

0.94010

2.51591

8.34186

8.36331

4.29475

33.47307

y wiwpnWPIOM - • "' l4-—— where WPli is the wholesale price index of the ith

Z VV7. - 1

commodity and wi is the respective weight

Note 3

The data used for computing the permissible O&M expenses shall be certified by thestatutory auditors,

Note 4

Where as CPI_ IW is directly published by the Central Government WPIOM shall becomputed from disaggregated data on wholesale prices published by Ministry ofIndustry.


Interest on Working Capital shall cover;

(i) Operation and Maintenance expenses for one month;

(ii) Maintenance spares at actuals but not exceeding one year'srequirements less value of one fifth of initial spares alreadycapitalized for the first five years; and

(iii) Receivables equivalent to two months of average billing for sale ofelectricity.

148 THE GAZETTE OF INDIA. EXTRAORDINARY [PART III—SEC. 4]

(iv) The interest rate for this purpose shall be the cash-credit ratesprevailing at the time of tariff filing.

3.5.2 Full Capacity Charges shall be recoverable if the station achieves CapacityIndex of 85%. The Capacity Charges shall be calculated on monthly basisand denominated in Rs./kW/month.

3.5.3 Primary Engery Charges

Energy Charges shall be worked out on the basis of paise per kWh rate on ex-bus energy scheduled to be sent out from the Generating Station after adjustingfor the free power delivered to the home state.

Rate of Primary Energy for all hydro stations except for pumped storage stations,shall be taken as 90% of the lowest variable charges of the central sector thermalpower station of the concerned region. The primary energy charge shall becomputed based on the primary energy rate and saleable energy of the project.This rate shall also be the rate to be used in merit order despatch of the plants.

Primary Energy Charge = Primary Saleable Energy (Ex-Bus) * Primary EnergyRate/(1-r)

Secondary Energy Charge = Secondary Saleable Energy(Ex-Bus)*Secondary Energy Rate/(1-r)

r = 0.12 and represents 12% free power to the home state.

Secondary Energy Rate shall be equal to Primary Energy Rate.

3.6 Incentive/Disincentive

In addition to the 'Capacity Charge1 and 'Primary Energy Charge1, the generatorshall be paid incentive when the Capacity Index (Cl) exceeds the normativeCapacity Index target of 85%. Incentive shall accrue up to a maximum CapacityIndex of 100%. When Capacity Index is less than 85%, disincentive shall bededucted from Capacity Charges paid to the Generating Company on pro-ratabasis of the Capacity Index Value.

Incentive shall be payable in accordance with the following formula:(a) Incentive = (Annual Fixed Costs - Primary Energy Charge)

X ( C I A - C I N )

(This may be a positive or negative quantity)

Where, CIA is the Capacity Index achieved and CIN is the normative value ofCapacity Index in percent.

149

For the purpose of incentive, the primary energy rate determined for the first yearof tariff period shall remain constant throughout the entire tariff period.

The incentives on account of higher Capacity Index and secondary energy shallbe payable on monthly basis, subject to cumulative adjustment in each month ofthe financial year and final adjustment shall be made at the end of the financialyear.

The total incentive payment calculated on an annual basis shall be shared by thevarious beneficiaries as per their individual allocated capacity.

3.7 Tax on Income

Tax on income from core activity of the Generating Company, if any, is to be computedas an expense and shall be recoverable by the Generating Company from thebeneficiaries.

Any under or over recoveries of tax shall be adjusted every year on the basis ofcertificate of statutory auditors.

Provided that:

(i) Tax on any income streams other than the income from core activity, if any,accruing to the Generating Company shall not constitute as a pass throughcomponent in the tariff. Tax on such other income shall be payable by theGenerating Company.

(ii) The station-wise profit before tax as estimated for a year in advance shallconstitute the basis for distribution of the Corporate tax liability to all the stations.

(iii) The benefit of Tax Holiday where applicable as per the provisions of the IncomeTax Act, 1961 shall be passed on to the respective stations.

(iv) The credit for carry forward losses if any shall also be given in an equitablemanner for all stations.

(v) The tax allocated to stations shall be charged to the beneficiaries on the sameproportions as annual fixed costs.


The Generating Company shall be entitled to a Development Surcharge of 5% on bothCapacity and Primary Energy Charges for the purpose of fresh capacity addition and

]50 THE GAZETTE OF INDIA: EXTRAORDINARY | PART III—SEr.4J

project development activities. The Development Surcharge shall not be payable foroperations exclusively within a State. The levy of Development Surcharge shall besubject to the following conditions:

(a) Surcharge collected by the utilities shall be kept in a separate bank accountand may be invested in securities of recognised infrastructure funds like IDFCor IDBI Tax free bonds and income therefrom shall also be credited to thatbank account;

(b) The Generating Company shall maintain separate accounts in its books andreflect the balance in the Development Surcharge Reserve Account and theinvestment represented against the same in their balance sheet;

(c) On the purchase of the undertaking or on any other such contingency thereserve and the corresponding investments shall be transferred to thesuccessor undertaking to subserve the same objective of fresh capacityaddition;

(d) The fund can be made use of to the extent of 1/3rd of the equity requirementfor any capacity addition in the respective region and the balance 2/3rd beingprovided by the Generating Company

(e) To the extent to which the fund is used as equity in any new capacity addition,pro rata reduction for the return on equity in the determination of tariff of thenew project shall be allowed;

(f) A certificate in the prescribed form regarding the use of these funds shall befiled with the Commission every year, duly verified by the statutory auditors ofthe Generating Company;

(g) The use of these funds in any other manner shall be only with the priorapproval of the Commission either on petition or suo motto for which the dueprocess as per the CERC (Conduct of Business) Regulations shall befollowed.

3.9 Unscheduled Interchange (Ul)

Variation in actual generation/drawal and scheduled generation/drawal shall beaccounted for through Unscheduled Interchange (Ul). Ul for a Generating Stationshall be equal to its actual generation minus its scheduled generation. Ul for abeneficiary shall be equal to its total actual drawal minus its total scheduleddrawal. Ul shall be worked out for each 15 minute time block. Charges for all Ultransactions shall be based on average frequency of the time block.

Ul Charges ^(Actual Energy - Scheduled Energy) * Ul Rate

This may be a positive or negative quantity

15!The following Ul rates shall apply:

*Average Frequency of time block Ul fate (Paise per kWh)

50.5 Hz and aboveBelow 50.5 Hz and up to 50.48 HzBelow 49.04 Hz and up to 49.02 HzBelow 49.02 HzBetween 50.5 Hz and 49.02 Hz

0.05.6

414.4420.0

linear in 0.02 Hz step

(each 0.02 Hz step is equivalent to 5.6 paise/kwh within the above range)

The above average frequency range and Ul rates are subject to change througha separate notification or order of the Commission from time to time.

The provisions relating to Ul shall come into force in accordance with thefollowing time schedule, after implementation of ABT.

Southern RegionEastern RegionNorthern RegionWestern RegionNorth Eastern Region

01-04-200101-05-200101-06-200101-08-2001Date will be notified subsequently

3.10 Rebate

For payment of bills through letter of credit on presentation, a rebate of 2.5 percent shallbe allowed. Where payments are made subsequently through opening of letter of creditor otherwise, but within a period of one month of presentation of bills by the GeneratingCompany, a rebate of 1 percent shall be allowed.

3.11 Late Payment Surcharge

In case the payment of bills by the beneficiary (ies) is delayed beyond a period of 1month from the date of billing a late payment surcharge at the rate of 1.5 percent permonth shall be levied by the Generating Company.

3.12 Deemed Generation

In case of reduced generation due to the reasons beyond the control of GeneratingCompany or on account of non-availability of board's transmission lines or on receipt ofbacking down instructions from the concerned Regional Load Despatch Centre resultingin spillage of water, the energy charges on account of such spillage shall be payable tothe Generating Company. Apportionment of energy charges for such spillage amongthe beneficiaries shall be in proportion to their shares in saleable capacity of the station.

152 THE GAZETTE OF INDIA EXTRAORDINARY | P M , I III—SI<- 4 |— — — • — : ; I ~ — ^ —

Energy charges on the above account shall not be admissible if the energy generatedduring the year is equal to or more than Design Energy.

3.13 Scheduling

The methodology of scheduling shall be as under:

(i) Each day starting from 00.00 hrs. shall be divided into 96 time blocks of 15minutes intervals.

(ii) The generator shall make an advance declaration of capacity of itsgenerating station. The declaration shall for that capacity which can beactually made available for a period of time not less than 3 hours within a24 hour period.

The generator shall intimate the declared capacity(MW), maximumavailable capacity(MW) and total Ex-Bus (MWh) to RLDC to enable it toprepare the schedule.

The declaration should also include limitation on- generation during anyspecific time period of the day on account of restriction(s) on water usage,etc.

It shall be ensured that declared capacity does not exceed the installedcapacity of the plant ordinarily. The over load capacity of the plant,wherever available, shall also be declared in case of systemsrequirements.

(iii) While making or revising its declaration of capacity, the generator shallensure that its declared capacity during peak hours is not less than thatduring other hours. However, exception to this rule shall be allowed inCase of tripping /re-synchronization of units as a result of forced outage ofunits.

(iv) The generation scheduling shall be done in accordance with the operatingprocedure, as stipulated in the IEGC.

(v) Based on the declaration of the generator, RLDC shall communicate to thebeneficiaries their shares out of which they shall give their requisitions.

(vi) Based on the requisitions given by the beneficiaries and taking intoaccount technical limitations on varying the generation and also taking intoaccount transmission system constraints, if any, RLDC shall prepare theeconomically optimal generation schedules and drawal schedules andcommunicate the same to generator and the beneficiaries.

153

RLDC shall also formulate the procedure for meeting contingencies both inthe long run and in the short run (Daily scheduling).

(vii) The scheduled generation and actual generation shall be at the generatingstation's ex-bus MWh. For beneficiaries, the scheduled and actual netdrawals shall be at their receiving points.

(viii) For calculating the net drawal schedules of beneficiaries, the transmissionlosses shall be apportioned in proportion to their drawals.

(ix) Scheduled generation of the generating station for each time block shallmean the Scheduled MWh Sent Out Ex-bus from the generating station.

(x) Actual generation of the generating station for each time block shall meanthe actual MWh Sent Out Ex-bus from the generating station.

(xi) In case of forced outage of a unit, RLDC shall revise the schedules on thebasis of revised declared capacity. The revised schedules shall becomeeffective from the 4th time block, counting the time block in which therevision is advised by the generator to be first one. The revised declaredcapacity shall also become effective from the 4th time block.

(xii) In the event of bottleneck in evacuation of power due to any constraint,outage, failure or limitation in the transmission system, associatedswitchyard and sub stations owned by CTU (as certified by RLDC)necessitating reduction in generation, RLDC shall revise the scheduleswhich shall become effective from the 4th time block, counting the timeblock in which the bottleneck in evacuation of power has taken place to bethe first one. Also, during the first, second and third time blocks of such anevent, the scheduled generation of the station shall be deemed to havebeen revised to be equal to actual generation and also the scheduleddrawals of the beneficiaries shall be deemed to have been revised to beequal to their actual drawals.

(xiii) In case of any grid disturbance, scheduled generation of all the generatingstations and scheduled drawal of all the beneficiaries shall be deemed tohave been revised to be equal to their actual generation/drawal for all thetime blocks affected by the grid disturbance. Certification of griddisturbance and its duration shall be done by RLDC.

(xiv) Revision of declared capability by generator(s) and requisition bybeneficiary(ies) for the remaining period of the day shall also be permittedwith advance notice. Revised schedules/declared capability in such casesshall become effective from the 6th time block, counting the time block inwhich the request for revision has been received in RLDC to be the firstone.

04X CJ] iOOl 20

]54 THE GAZETTE OF INDIA: EXTRAORDINARY IPAKT III—SEC. 4]

(xv) If, at any point of time, RLDC observes that there is need for revision of theschedules in the interest of better system operation, it may do so on itsown and in such cases, the revised schedules shall become effective fromthe 4th time block, counting the time block in which the revised schedule isissued by RLDC to be the first one.

(xvi) Generation schedules and drawal schedules issued/revised by RLDC shallbecome effective from designated time block irrespective ofcommunication success.

(xvii) For any revision of scheduled generation, including post facto deemedrevision, there shall be a corresponding revision of scheduled drawals ofthe beneficiaries.

(xviii) A procedure for recording the communication regarding changes toschedule duly taking into account the time factor shall be evolved by CTU.

(xix) a) Run-of-River type hydro stations

Since there is no regulation possible in such stations, these shall betreated as must run stations. The maximum declared capacity, duly takinginto account the over load capability, must be equal to or greater than thatrequired to make full use of the available water. There shall be nospillage, unless plant is operating at full plant capacity.

b) Diurnal storage & long term Storage hydro stations

These type of hydro stations are designed to operate during peak hours tomeet system peak demand. The declared capacity shall be equal themaximum available capacity of the plant including overload capacity,wherever applicable. RLDCs shall ensure that generation schedules ofsuch type of stations shall be prepared and the stations dispatchedaccordingly except in the event of specific systemrequirements/constraints.

3.14 Demonstration of Declared Capacity

The Generating Company may be required to demonstrate the declared capacityof its generating station as and when asked by the RLDC of the region in whichthe generating station is situated. In the event of Generating Company failing todemonstrate the declared capacity within a tolerance limit specified by CTU, thecapacity charges due to the Generating Company shall be reduced as ameasure of penalty.

The quantum of penalty for the first mis-declaration for any 24 hour period shallbe the charges corresponding to two days fixed charges. For the second mis-declaration the penalty shall be equivalent to fixed charges for four days and for

155

subsequent mis-declarations, the penalty shall be multiplied in the geometricalprogression as per the order of the Commission.

A procedure shall be evolved by RLDCs for testing the declared capacity of astation in the event of minimum flow available in case of Run-of-River andpondage type hydro stations.

Note :

In case it is observed that the declared capacity and/or declared energy given bythe generator is repeatedly under-stated compared with actual generation withina tolerance specified by the CTU, then Ul charges due to the generator onaccount of such extra generation shall be reduced to zero and the amount shallbe credited towards Ul account of beneficiaries in the ratio of their capacity sharein the station.

The operating log books of the generating station shall be available for review bythe RLDC. These books keep record of machine operation and maintenance,reservoir level and spillway gate operation.

3.15 Metering and Accounting

Metering arrangements, including installation, testing and operation andmaintenance of meters and collection, transportation and processing of datarequired for accounting of energy exchanges and average frequency on 15minute time block basis shall be provided by the POWERGRID/RLDC.Processed data of tl 3 meters along with data relating to declared capability andschedules etc., shall be supplied by RLDCs to REBs and REBs shall issue theRegional Accounts for energy as well as Ul charges on monthly basis. The Ulaccounting procedures shall be governed by the orders of the Commission.

3.16 Billing and Payment of Capacity Charges

Billing and Payment of Capacity Charges shall be done on a monthly basis in thefollowing manner:

(i) Each beneficiary shall pay the Capacity Charges in proportion to itspercentage share in total saleable capacity of the station, adjusted for thehome state free capacity.

Note 1: Allocation of total capacity of Central Sector Stations is made byGol from time to time which also has an unallocated portion. Allocation ofthe unallocated portion shall be made by the Gol from time to time, for thetotal unallocated capacity. The total capacity share of any beneficiarywould be sum of its capacity share plus allocation out of the unallocatedportion. Ir case of no specific distribution of unallocated power by the Gol,

156 THEGAZETTEOF INDIA:EXTRAORDINARY IPARI III—SEC. 41

the unallocated power shall be added to the allocated shares in the sameproportion as the allocated shares.

Note¥2: The beneficiaries may propose surrendering part of their allocatedshare to other States within/outside the region. In such cases, dependingupon the technical feasibility of power transfer and specific agreementsreached by the generating company with other States within/outside theregion for such transfers, the shares of beneficiaries may be re-allocatedby the Gol for a specific period. When such re-allocations are made, thebeneficiaries who surrender the share shall not be liable to pay capacitycharges for the surrendered share. The capacity charge for capacitysurrendered and reallocated as above shall be paid by the State(s) towhom the surrendered capacity is allocated. Except for the period ofreallocation of capacity as above, the beneficiaries of the generatingstation shall continue to pay the full fixed charges as per allocatedcapacity shares.

(ii) The beneficiaries shall have full freedom for negotiating any transaction forutilization of capacity shares. In such cases, the beneficiary havingallocation in the capacity of the generating station shall be liable for fullpayment of capacity charge and energy charge (including that for sale ofpower under the transactions negotiated by them) for all its scheduled andunscheduled transactions from its capacity shares.

(iii) If there is any capacity which remains un-requisitioned during day -to-dayoperation, RLDC shall advise all beneficiaries In the region and the otherRLDCs so that such capacity may be requisitioned through bilateralarrangements with the concerned generating company/beneficiary(ies)under intimation to the RLDC.

(iv) The capacity charges shall be paid by the beneficiary(ies) including thoseoutside the Region to the generator every month in accordance with thefollowing formulae:

1st

ond

3rd' 4 t h

5th

6th

7th8th

9m

10*11'12'

month = (1xACC1)/12month = (2xACC2-1XACC1)/12month = (3xACC3 - 2XACC2)/12month = (4xACC4- 3XACC3)/12month = (5xACC5 - 4xACC 4)/12month = (6xACC6- 5XACC5)/12month = (7xACC7- 6XACC6)/12

month = (8xACC8 - 7XACC7)/12month = (9xACC9 - 8XACC8)/12

h month = (10xACC10-9XACC9)/12h month = (11xACC11 -10xACC10)12h month = (12xACC12-11XACC11)/12

i*month = —^L + ~-*{ACC, - ACC,_X)

157

and, each beneficiary having firm allocation in capacity from thegenerating station shall pay:

1st

pndrrl

3 r d

fh4 th

5th

67th

8 t h

th910l

ii

11 l

12"

month = [ ACC1month = [2xACC2month = [3xACC3month = [4xACC4month = [5ACC5month = [6ACC6month = [7/ACC7month - [8xACC8

month = [9xACC9h month = [10xACC 10h month = [11 xACC11hmonth = [12xACC12

xWB1]/1200xWB2 -1xACC1xWB1]/1200xWB3 -2xACC2xWB2]/1200xWB4 -3xACC3xWB3]/1200xWB5 -4xACC4xWB4J/1200xWB6 -5xACC5xWB5]/1200xWB7 -6xACC6xWB6]/1200xWB8 -7xACC7xWB7]/1200xWB9 -8xACC8xWB8]/1200xWB 10 - 9xACC9xWB9]/1200xWB11 -10xACC10xWB10]/1200XWB12 -11xACC11xWB11]/1200

lh ACC, * WB (i -1)i'hmonth = ^ — ± + y—^± *(ACC * IVB, - ACC^ * WB,_X)

Where

ACC1, ACC2, ACC3, ACC4, ACC5, ACC6, ACC7. ACC8 ACC9. ACC 10,ACC11 and ACC12 are the amount of Capacity Charge for the period upto the end of 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, and 12th monthsrespectively.

And.WB1.WB2, WB3, WB4 ,WB5, WB5, WB7, WB8, WB9.WB10,WB11 and WB12 are the weighted average of percentage allocatedcapacity share of the beneficiary during the cumulative period upto 1st 2nd

3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th. and 12th months respectively.

Year means the financial year.

When the month of change over to tariff as per this notification is the firstmonth of a financial year, then 'capacity index ' for the part of the year priorto switchover shall be "deemed capacity index" determined on the basis ofactual generation plus backing down and weighted average of percentageallocated capacity share of the beneficiary shall be equal to its total drawalfrom station (as per regional energy accounting) expressed as percentageof total ex-bus generation. Payment of capacity charges for the period priorto switchover shall be regulated as per tariff applicable till the date ofswitchover and pro-rata incentive, as applicable shall be paid. Payment ofCapacity Charges for the month after the switchover to tariff shall be asper the formula given above.

158 THE GAZETTE OF INDIA EXTRAORDINARY [PART HI—SEC 4]

CHAPTER 4

INTER-STATE TRANSMISSION

4.1. Definitions

Unless the context otherwise requires, for the purpose of this chapter:

(i) 'Authority1 means Central Electricity Authority established under section 3of the Electricity (Supply) Act, 1948.

(ii) 'Availability' in relation to a transmission system for a given period meansthe time in hours during that period the transmission system is capable totransmit electricity at its rated voltage from the supply point to the deliverypoint and shall be expressed in percentage of total hours in the giveperiod.

(iii) 'Commission' means the Central Electricity Regulatory Commissionestablished under Section 3 of the Electricity Regulatory Commissions Act,1998.

(iv) 'Contract Path' means the shortest route formed by a series oftransmission lines capable of carrying contracted power between the pointof receipt to point of delivery in the wheeling system.

(v) ' Contracted Power' means the power in MW which the wheeling utilityhas agreed to carry or which the wheeling utility is required to carry as perallocation/agreement between the importing and exporting utility.

(vi) 'Rated Voltage' means the manufacturers design voltage at which thetransmission system is designed to operate or such lower voltage at whichthe line is charged, for the time being, in consultation with supplier andreceiver of electricity.

(vii) Transmission Service Agreement ' means the agreement, contract,memorandum of understanding, or any such covenants, entered intobetween the Transmission Utility and the beneficiary of the transmissionservice.

(VIM) ' Transmission System' means a line with associated Sub-Stations or agroup of lines inter-connected together alongwith associated sub-stations

(ix) 'Transmission Utility' means any Generating Company, board, licenseeor other person engaged in the inter-state transmission of energy

159

(x) Wheeling means the operation whereby the transmission system andassociated facilities of Transmission Utility are used by another person forconveyance of electricity.

4.2 Norms of Operation

The norms of operation, subject to modifications thereof from time to time shall beas under:-

(i) Date of Commercial Operation

The date of commercial operation shall be the date of charging thetransmission system to its rated voltage level or seven days afterthe date on which it is declared ready for charging by thetransmission utility, but not able to charge for reasons notattributable to its suppliers or contractors.

(ii) Auxiliary Power Consumption in the Sub-Station:

(a) AC System - NIL

Note

The auxiliary consumption in the AC sub-station for the purpose of air-conditioning, lighting, technical consumption, etc. shall be borne by thetransmission utility as part of its operation & maintenance expenses.

(b) For HVDC Sub-station -

For Auxiliary power consumption in HVDC stations Gol shall allocateappropriate share from the ISGS / Central Power Stations in the region.Fixed charges for such power shall be borne by the beneficiaries of theregion and ISGS shall bill the Transmission Utility only for the variablecharges.

(iii) Normative Availability of the Transmission System

The Normative Availability of the Transmission System shall be 98% andshall be calculated as per the procedure contained in Appendix - III tothis notification.

4.3. Capital Cost and capital structure

(a) The capital expenditure of the Transmission System shall befinanced as per the approved financial package set out in the

160 THE GAZETTE OF INDIA EXTRAORDINARY [PARF!! !—SK 4]

techno-economic clearance of the Authority or as approved by anappropriate independent agency, as the case may be.

(b) The capital cost shall include capitalised initial spares for the first 5years of operation The approved project cost shall be the costwhich has been specified in the techno-economic clearance of theAuthority or as approved by an appropriate independent agency,as the case may be.

(c) The actual capital expenditure incurred on completion of the projectshall be the criterion for the fixation of tariff Where the actualexpenditure exceeds the approved project cost the excesses asapproved by the Authority or an appropriate independent agency,as the case may be, shall be deemed to be the actual capitalexpenditure for the purpose of determining the tariff, provided thatexcess expenditure is not attributable to the 'Transmission Utility' orits suppliers or contractors

Provided further that where a transmission services agreemententered into between the Transmission UWity and the beneficiaryprovides a ceiling on capital expenditure, the capital expenditureshall not exceed such ceiling

4.4 Computation of Transmission Charges

The single part tariff for transmission of electricity by a transmission system shallcomprise the recovery of annual transmission charges consisting of interest on loancapital, depreciation, advance against depreciation, operation and maintenanceexpenses, return on equity and interest on working capital at a normative availabilitylevel. The taxes on income reckoned as expenses at actuals on core business andFERV shall be regulated as prescribed

The annual Transmission Charges shall be computed on the following basis, namely -

(a) Interest on loan Capital

Interest on loan capital shall be computed on the outstanding loans, duly takinginto account the schedule of repayment, as per the financial package approvedby the Authority or any independent agency

(b) Depreciation :

(i) The value base for the purpose of depreciation shall be the historical costof the asset

161

(ii) Depreciation shall be calculated annually as per straight line method atthe rate of depreciation as prescribed in the Schedule attached to thisnotification in Appendix II.

Provided that the total depreciation during the life of the project shall notexceed 90% of the approved Original Cost. The approved original costshall include additional capitalization on account of foreign exchange ratevariation also.

(iii) Advance against depreciation (AAD), in addition to allowable depreciation,shall be permitted wherever originally scheduled loan repayment exceedsthe depreciation allowable as per schedule and shall be computed asfollows:

AAD = Originally scheduled loan repayment amount subject to a ceiling of1/12m of original loan amount Deprectation as per the schedule

(iv) On repayment of entire loan, the remaining depreciable value shall bespread over the balance useful life of the asset.

(v) Depreciation shall be chargeable from the first year of operation. In caseof operation of the asset for part of the year, depreciation shall be chargedon pro-rata basis.

(vi) Depreciation against assets relating to environmental protection shall beallowed on case-to-case basis at the time of fixation of tariff subject to thecondition that the environmental standards as prescribed have beencomplied with during the previous tariff period.

(c) Return on Equity

Return on equity shall be computed on the paid up and subscribed capitalrelatable to the transmission system and shall be 16 percent of such capital.

Explanation:^

Premium raised by the Transmission Utility while issuing share capital & investment ofinternal resources created out of free reserve of the existing utility, if any, for the fundingof the project, shall also be reckoned as paid up capital for the purpose of computingthe return on equity, provided such premium amount and internal resources are actuallyutilised for meeting the capital expenditure of the Transmission project and forms part ofthe approved financial package as set out in the techno-economic clearance accordedby the Authority.

9JXUI20UI : i

162 THE GAZETTE OF INDIA. EXTRAORDINARY (PAH r III—SEC 4 |

(d) Operation and Maintenance expenses

Operation and maintenance expenses including expenses on insurance, if any,(hereinafter referred to as O&M expenses) shall be calculated as under

i) Where the O&M expenses, excluding abnormal O&M expenses if any onsub-stations(OMS) and lines (OML), are separately available for each region,these shall be normalized by dividing them by number of bays and line lengthrespectively. Where data as aforesaid is not available, O&M expenses in theregion shall be apportioned to the sub-stations and lines on the basis of 30:70ratio and these shall be normalized as below :

O&M Expenses per unit of line length in Kilometers (OMLL)

OMLL= O&M expenses for lines (OML) /Average line length in kilometers (LL).

O&M expenses for Sub stations (OMBN)

OMBN = O&M expenses for substations (OMS) / Average number of bays(BN).

ii) The five years average of the normalized O&M expenses for lines and forbays (for the period 1995-96 to 1999-2000) shall be escalated at 10 percentper annum for two years (1998-99 and 1999-2000) to arrive at the norm forO&M expenses per unit of line length and per bay for 1999-2000.

Normative O&M per unit of line length (NOMLL) = AVOMLL x (1.10)2

Normative O&M per bay (NOMBN) = AVOMBN x (1.10f

Where AVOMLL & AVOMBN are average O&M expenses per unit of line lengthand per bay respectively.

Ym9-2m>OMLiAVOMLL =y^--ToooLL.

Z1999-2000 , ,OMSi

SIWIVIBIV ^-MWJ-2000

> BNi

Where LLi and BNi is the average line length and number of bays respectively inthe given year i.

(iii) NOMLL & NOMBN for the regions derived in the preceding paragraphshall be escalated at the rate of 6 percent per annum to obtain thenormative values of O&M expenses per unit of line length and per bay inthe relevant year. These normative values shall be multiplied by the line

163

length and number of bays (as the case may be) in a given system in thatyear to compute the permissible O&M expenses for that system.

(iv) The escalation factor of 6 percent per annum shall be used to revise thenormative base figure of O&M expenses. A deviation of the escalationfactor computed from the actual inflation data that lies within 20 percent ofthe above notified escalation factor of 6 percent (which works out to be 1.2percentage points on either side of 6 percent) shall be absorbed by theutilities/beneficiaries. In other words if the escalation factor computed fromthe observed data lies in the range of 4.8 to 7.2 percent, this variationshould be absorbed by the utilities. Deviations beyond this limit shall beadjusted on the basis of the actual escalation factor arrived at on the basisof a weighted price index of CPI for industrial workers (CPIJW) and anindex of select components of WPI (WPITR) as per formula given below,for which the utility shall approach the Commission with a petition:

(v) The actual escalation factor during the tariff period shall be computedfrom the published data as below:

Escalation = 0.55 X Infl CPI + 0.45 X Infl WPITR

WhereInfl CPI = Annual Average Inflation in CPIJW.Infl WPITR = Annual Average Inflation in WPITR (to becalculated as under)

(vi) WPITR is computed as a weighted average of relevant components (listedbelow) selected from disaggregated WPI series (1993-94=100).

COMMODITIES

1. Cotton Cloth




5. Turpentine, Synthetic Resins, Plastic Materials etc





All the Above (WPITR)

WEIGHT

0.90306

2.04403

2.38819

0.49576

0.74628

2.51591

8.34186

8.36331

4.29475

30.0931

m THE GAZETTE OF INDIA; EXTRAORDINARY P>ART II]—SEC 4]

V wiWPIiWPITR = *~"~\ -

1-1

where WPIf is the Wholesale Price Index for the ith sub-group and w, is its respectiveweight

Note

O&M expenses on account of network expansion in a given Financial Year shall becomputed on the basis of relevant normative O&M expenses per unit of line length ornumber of bays. The normative O&M expenses for 1999-2000 (NOMLL and NOMBN asthe case may be) shall be escalated at 6 percent per annum to bring them to level ofrelevant year. These normative expenses multiplied by the line length or the number ofbays, as the case may be, for added the year in which expansion has taken place shallgive the O&M expenses on account of network expansion per year. For the year ofcommissioning, the O&M expenses for lines and bays added shall be apportioned for onthe basis of their months in operation during that year.

Note

Where as CPI IW is directly published by the Government, WPITR shall be computedfrom disaggregated data on wholesale prices published by Ministry of Industry.

Note

The data used for computing the permissible O&M expenses shall be certified by thestatutory auditors,


Interest on working capital shall cover;

(i) operation and maintenance expenses (cash) fo> one month;(ii) maintenance spares at a normative rate of 1% of the Capital cost

less 1/5th of the initial capitalized spares. Cost of maintenancespares for each subsequent year shall be revised at the rateapplicable for revision of expenditure on O&M of transmissionsystem and

(iii) receivables equivalent to two months' average billing calculated onnormative availability level.

4.5 Tax on Income

Tax on the income streams of the Transmission Utility from core activity, if any, tobe computed as an expense at shall and shall be recovered from thebeneficiaries.

Any under-recoveries or over recoveries of tax shall be adjusted every year onthe basis of certificate of statutory Auditors.

165

Provided:

(i) Tax on any other income streams, other than the core activity, shall not constitutea pass through component in the tariff. Tax on such other income shall bepayable by the Transmission Utility.

(ii) The region-wise profit before tax as estimated for a year in advance shallconstitute the basis for distribution of the Corporate tax liability to all the regions.

(iii) The benefits of Tax Holiday applicable as per the provisions of the Income TaxAct, 1961 shall be passed on to the beneficiaries.

(iv) The credit for carry forward losses could also be given in the same proportion asmentioned above (in the Sub clause (ii)) in the absence of any other equitablebasis.

(v) The tax allocated to regions shall be charged to the beneficiaries on the samelines as annual fixed charges/existing charges.

4.6. Payment of Transmission Charges

Full annual transmission charges shall be recoverable at 98 percent Availability ofOperation. Payment of transmission charge below 98 percent shall be on pro-rata basis. There shall not be any payment of annual transmission charges foravailability level above 98 percent. The transmission charge shall be calculatedon monthly basis. In case of more than one beneficiaries of the transmissionsystem, the monthly transmission charge leviable to each beneficiary shall becomputed as per the following formula.

TC EBTransmission Charges^ x

12 ES

Where TC = Annual Transmission Charges payable by the beneficiaries.

EB = Monthly energy sale from Central Sector Stations as may comein the system to each beneficiary individually as per RegionalEnergy Account.

ES . = Total monthly energy sale from Central Sector Stations.

Note

When availability based generation tariff and unscheduled interchange tariff isintroduced for payment of 'generation/ unscheduled interchange charges by thebeneficiaries, the monthly transmission charges leviable to each beneficiary shallbe computed as per their respective capacity allocation from ISGS or per thetransmission agreement, if any.

16t, THE GAZETTE OF INDIA EXTRAORDINARY |[ ' \ r i III -Si • 4j

4.7 Incentive

The Transmission Utility shall be entitled to incentive beyond the Availability of 98% asn«r tahlfi hfilnw

Availability %

98% and below98.01%-98.50%98.51%-99.00%99.01%-99.50%99.51 -99.75%

IncentiveAs a percent of equity0.001.001.001.001.00

Cumulative IncentiveAs a percent of equity

o.oc1.002.003.004.00

4.8 Principle of sharing of Transmission Charges of the inter-regional assetsincluding HVDC system by the beneficiaries

The Transmission Charges of the inter-regional assets including HVDC systemshall be shared in the ratio of 50:50 by the two contiguous regions. TheseTransmission Charges shall be recovered from the beneficiaries by pooling 50%of the Transmission Charges for such inter-regional assets with the TransmissionCharges for transmission system of the respective regions.

4.9 Wheeling Charges for inter-state transmission :

4 9.1 Wheeling on POWERGRID/Licensee's system:

4.9.1.1 In case of inter-regional transmission of power through the transmissionsystem belonging to POWERGRID or any Licensee, the total monthlycharges payable to them by the importing, exporting and intermediaryregions (if any) shall remain the same.

4.9.1.2 Till introduction of ABT, the sharing of monthly transmission charges shallbe in proportion to energy drawal. In case of importing region, the monthlytransmission charges payable to POWERGRID/Licensee shall be sharedin proportion to energy drawal as per Regional Energy Accountingincluding energy drawn from exporting region. In case of exporting region,the monthly transmission charges payable to POWERGRID/Licenseeshall be shared by its constituents and beneficiaries (importing utilities)outside the region in proportion to energy drawal as per Regional EnergyAccounting. Subsequent to introduction of ABT, sharing of the monthlytransmission charges shall be on the basis of capacity allocation andcontracted power. No transmission charges shall, however, be payable bythe importing utility for utilisation of POWERGRID/Licensee system inintermediary region(s).

4.9.1.3 The transmission losses shall be payable for utilisation of thePOWERGRID/Licensee's system.

167

4.9.2 Wheeling through SEB/State Utility system:

4.9.2.1 In case of wheeling of power through SEB/state utility system, theimporting utility and the wheeling utility shal^ endeavour to mutuallyagree on wheeling charges as well as transmission losses. In suchcases, approval of the Commission shall not be required. However,the wheeling utility shall not deny use of its system merely on thebasis of non-agreement on wheeling charges.

4.9.2.2 If the parties are not able to agree on the wheeling charges, theContract Path method shall be used for calculation of wheelingcharges. Monthly transmission charges of this path would be payablein proportion to contracted power vis-a-vis SIL of the lines in thecontracted path. The monthly transmission charges for the contractpath shall be calculated as per the provisions of this notification.

4.9.2.3 In case, wheeling utility makes some special arrangement (such asbacking down cheaper generation) to facilitate exchange, theverifiable opportunity cost or the charges calculated as per contractpath method, which ever is higher, shall be payable to the wheelingutility. In any case, the wheeling charges shall not exceed thecharges corresponding to a new transmission line of adequatecapacity along the contracted path. The Member Secretary, REB ofthe region in which wheeling utility is located, shall calculate wheelingcharges by applying the principles enumerated above.

4.9.2.4 The incremental transmission losses on account of wheeling shall bepayable in kind i.e. the transmission losses shall be compensated byan equivalent amount of energy charged to the importing utility. Incase of non-agreement on the issue of transmission losses, thestudies to determine incremental transmission losses in the wheelingutility system shall also be carried out by the Member Secretary of theregion concerned.

4.9.2.5 The Commission may be approached in case of disagreement withthe decision of Member Secretary, REB. Pending the final order ofthe Commission, decision of the Member Secretary, REB shall beimplemented on provisional basis.


The Transmission Utility shall be entitled to a Development Surcharge of 10 percent onevery bill raised by it on account of transmission charges at regional level. The levy ofDevelopment Surcharge shall be subject to the following conditions:

(a) Surcharge collected by the transmission utility shall be kept in a separatebank account and may be invested in securities of recognised infrastructurefunds like IDFC or IDBI Tax free bonds and income therefrom shall also becredited to that bank account;

]68 THE GAZETTE OF INDIA; EXTRAORDINARY [PART III—SEC. 4]

(b)The transmission utility shall maintain separate accounts in its books andreflect the balance in the Development Surcharge Reserve Account and theinvestment represented against the same in its balance sheet;

(c) On the purchase of the undertaking or on any other such contingency thereserve and the corresponding investments shall be transferred to thesuccessor undertaking to subserve the same objective of fresh capacityaddition;

(d) The fund can be made use of to the extent of 1/3rd of the equity requirementfor any capacity addition in the respective region and the balance 2/3rd beingprovided by the transmission utility;

(e) To the extent to which the fund is used as equity in any new capacity addition,pro rata reduction for the return on equity in the determination of tariff of thenew project shall be allowed ;

(f) A certificate in the prescribed form regarding the use of these funds shall befiled with the Commission every year, duly verified by the statutory auditors ofthe Transmission Utility.

(g) The use of these funds in any other manner shall be only with the priorapproval of the Commission either on petition or suo motto for which the dueprocess as per the CERC (Conduct of Business) Regulations shall befollowed.

4.11 Rebate

For payment of bills through letter of credit on presentation, a rebate of 2.5 percent shallbe allowed. Where payments are made subsequently through opening of letter of creditor otherwise, but within a period of one month of presentation of bills by theTransmission Utility, a rebate of 1 percent shall be allowed.

4.12 Late payment surcharge

In case the payment of bills by the beneficiary (s) is delayed beyond a period of 1month from the date of billing a late payment surcharge at the rate of 1.5 percent permonth shall be levied by the 'Transmission Utility1

K. VENUGOPAL. Secy.

[ADVT IlI/IV/Exty./l 50/2000]

169

(Appendix-I)

1.2.3.

4.

5.

6,7.

8.

9.10.11.

12.

13.14.15.

16.

17.

18.19.20.

21.

22.23.

Checklist of Documents for tariff filing for ThermalStationsfPart-ft

Approval of the Project from Competent Authority.Capital cost approval from the Competent Authority.Equity participation agreements and necessary approval for foreignequity.Stationwise/Corporate audited Balance Sheet and Profit & Loss A/cwith all the schedules & annexes from the Financial year 1998-99and onward.A copy of project specific tariff Notification of GOI or PpA withbeneficiaries.Statement of Tariff proposal (Form No.l)Normative Technical/Financial/Macro-Economicassumptions/Energy Generation Parameters (Form No.2)Power Station Basic Information and Technical Characteristics(Form No.2A)Summary of various components of Fixed charge (Form No.3)Computation of Interest on Loans(Form No.4)Statement of Calculation of Average Rate of Interest on WorkirfgCapital Loans (Form No.5)Statement of Depreciation on various assets as per CERC norms(Form No.6)Calculation of Operation & Maintenance Expenses (Form No.7)Details of Capital Cost and Financing structure (Form No.8)Statement of Capital expenditure actually incurred and capitalised/approved expenditure (Form No.9)Information of Environmental matters and its related issues (FormNo.9A)Statement of outstanding loan, interest and financing charges thereoi(Form No. 10).Details of Financial packages (Form No.l 1)Details of Operation and Maintenance expenses (Form No. 12)Details/information to be submitted for computation of energ'charges of coal/lignite based stations (Form No. 13 & 13 A)

i

y

Details/information to be submitted for computation of energycharges of gas/naphtha fuel based stations/secondary fuel oil forsolid fuel stations (Form No. 14 & 14A)Method of calculation of rate of energy charge (Form No. 15)Any other relevant information^ Please Specify)

94X <U'2OO1- -22

170 THE GAZETTE OF INDIA. EXTRAORDINARY [PART I [I—She 4]

TARIFF FILING FORMS -PART-) (THERMAL GENERATING COMPANY)

FORM-1

Name of the Company

Name of the Generating Station :

Brief Description of evtnt leading to tariff filing:-

STATEMENT OF TARIFF PROPOSALS FOR—COVERING TARIFF PERIOD FROM — T O —

As axlating Proposed

LCalcul

1.1

1.2

1.3

1.4

1.5

1 6

2,Calcul

NOTE: A

c;

PARTICULARS 2000-01 01-02 02-03 03-04

(1)

atlon of Fixed Charges(Rs. Crs)

Interest on Loan [FORM-3 ]

Interest on Working Capital [FORM-3]

Depreciation [FORM-3 ]

Advance against Depreciation[FORM-3 ]

Return on Equity(FORM-3)

O & M Expenses [FORM-3 ]

TOTAL

ition of Rate of Energy Charge(Rs./Kwh)[FORM-

Rate of Energy Charge from Primary Fuel (REC)P

Rate of Energy Charge from Alternate/

Secondary Fuel (REC),

(2) (3)

5]

During Stablisatlon

Rate of Energy Charge (REC)

ny escalation In fuel cost to be considered for subsequent years or FPA to t)re of the escalation.

(4)

After Stablisatlo

(S)

n

ake

(PETITIONER)

171

NAME OF POWER STATION : FORM-2

Year ending March 2000-01 2001-02 2002-03 2003-041 NORMATIVE PARAMETERS I

~ (AS NOTIFIED BY CERC); ~" ~ " ~Target Availability "~ ^Normative PLFAuxiliary consumption (%)Station Heat Rate KCal/KWhHours of operation at Target AvailabilityHours of operation at Target PLFSp Oil consumption (ml/KWh)O & M Charges (% of CC for plants less than 5 years old)(Based on actuals for plants more than 5 yearsCoal stock +expense in months for Working Capital (WC)Oil stock in months for WCSpares stock for WC as % of O&MRecievables in Months for WCRate of Return on Equity (%)

2 ENERGY GENERATIONProjected AvailabilityACTUAL/ESTIMATED PLFEnergy GeneratedEnergy Sold

(PETITIONER)

172 T

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F IND

IA

EXTR

AO

RD

INA

RY

[P/\R

Tffl--Sfcc 4]

Power StaUon BASIC INFORMATION AND TECHNICAL CHARACTERISTICS F0RM2A i

Financial Yew

NAME OF THE POWER STATION: |Location Region State Dsitnct

Plant Basic Characteristics and Fuel Type

Pte.nl Bas*c Characteristics (see Note 1}

Contracted Capacity

Fuel Type

Capacity (based on Performance Tests if any): Tha data must be provided for each slngte Unit (witti a turbo generator), starting with the Module 1 (or Stage 1)

Module (Btocfc) Narre of NumberUnrt Number

Date of Synchronisalion

Capacity at me date of synchronisation

Date of entry into commercial

Capacity at trie dale of entry into commercial operation

Date of statMlisatfon

Capacity at the date of stabilisation

Rated Capacity

Type of Drive for Boiler Feed Pump, (f any (see Note 2)

Type of Cooling system for condenser, If any (see Not* 3)

Type of cooling system for electric generator (s*e Note 4)

Other Main Characteristics j

Note 1 Ex kx Coal Plant- (a) conventional steam generator, (b) circulating fjtdeed bed combustion generator {c ) sub critical once through steatn generator, etc**3te2 (a) motor driven (b) steam turbine dnven other (descrfce)Note 3 (a) once through coolirta system, (b) closed cycle coolinq jsinq wet coclnq lower, (c ) other (describe)Note 4 (a) air cooled, (fc\ water cooled, (c ) hydrogen cooted, (d) other (describe)

(PETITIONER)

3

1.1

1.2

1.3

1.4

1.5

1.6

NAME OF POWER STATION :

Year ending March

SUMMARY 0

INTEREST ON LOAN(As per Form-4)

INTEREST ON WORKING CAPITAL(As per Form-5)

DEPRECIATION <A1

(As per Forrp-6)

ADVANCE AGAINST DEPRECIATION

Loan repayment during year(As pef Form 4}1/12thoftheLoan(Loan as per Form 4)AMOUNT ADMISSIBLE UNDER AAD (B)

ADVANCE AGAINST DEPRECIATION (B-A)

RETURN ON EQUITY

Equity —Foreign—Indian

Total Equity (Rs Cra)

Return on foreign EquityFteturn on Indian EquityRETURN ON EQUITY (Rs crs)

O & M EXPENSES(As per Form-7)

i : i • ; i FORW-3

FROM C.O.D.TO END OF THE TARIFF PERIODji 1 2 3 ' 4 , 5 j .

f VARIOUS COMPONENTS OF FIXED CHARGES, i

; i i i :' : i !

! ! : i ;.

12000-01 ! 01-02 I 02-03 03-04

i i i _; . .1

. _ . . ! .J 1

• ' i '

-1

_

•

" !"-

. _ _

!i

- - y -- j-~- - r -

i 1 '

i • . ii

- - - - - " i • !

(PETmONER)

174 T

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[Pw

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FC

4]

{NAME OF POWER STATION :_

FROM THE C.O.D.; Year encing MarchCOMPUTATION OF INTEREST ON LOANSCOMPUTATION OF DEST CHARGES

LOAN-1 Loan n Org^nal CurrencyPnoapal RepaymentBalance Payable

Interest in Rs Crs

LOAN-2 Loan m OfgmaJ Currency| Pmctpal Repayment

Balance Payablelinterestm Rs Crs

, LOAN-3 Loan n Orgmal CurrencyPnnapal RepaymentBalance Payable

Interest m Rs Crs

7LOAN-4 Loan n OrgmaJ Currency jPnnapal RepaymentBalance Payable

Interest in Rs Crs

, Yearly nstalment(RS Crs)lCummul3trve RepaymentYear End Debt(Curr Exc Rate)

^B/SDetoti Total interest payment

INTEREST ON (OAN FOR TARIFFInterest charged to IDC

NOTE Repeat detaSs for addrtwrtalkjans, rf any

" I1

-

- 1 i2

-

-

3

T

i

4

-

—

-

_ J

p| FORM-4 ] ~ .1 ' 1

12000-01 01-02

I—

I

: _i -— -i

— - i

I

-

Ir

\r — 1

I

— —

02-03 0iO4

-

(PETmONER)

175

NAME OF POWER STATION : FORM- 5

Statement of Calculation of Averaae Rate of Interest(CC) on Workina Caoital

SL.NO

1abcde

Loans And Amount of Working Capital

BRIEF DESCRIPTION OF LOAN

2

TOTALWeighted Average Rate of Interest (5/3)

Year ending March

INTEREST ON WORKING CAPITAL

Coal Stock -1 or 1/2 monthOil stock - 2 monthsO & M expenses -1 monthSpares 1 year = 40% of O&M Less 1/5thof initial capitalised spares for first 5 yearsReclevables- 2 monthsTotal Working Capital (Rs cr)

Working Capital Loan allowed

Weighted Average Interest Rate

INTEREST ON WORKING CAPITAL (Rs cr)

CC: Cash Credit

AMOUNT(Rs- InCrs)

V

3

2000-01

RATE OFINTEREST(CC) (%)

4

2001-02

Weighted

5=3*4

2002-03 2003-04

(PETITIONER)

H6

_

__

_

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GA

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TT

E O

F IN

DIA

E

XT

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OR

DIN

AR

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[PAR

T [II—-SE

T 4

)

hAME OF POWER STATION

STATEMENT OF DEPRECtATTON

Details of approved Expenditure onAssets

(D

A) i A U . MAJOR VTB«S

a) LANDbJBULD'NGcJPLANT 4 k*ACHINERY

*)MOTH£R W O f l ITEMS

Toai(A)

B) Specify fofowing dents rctuded^ A' abov^

a) CapHlaiswt I ratal Spares ,bjinterest Dunng Conslructior

Capitalisedc) Equipments for pctubon ControJ

To«(B)

I

Actual cost base firm led to Approved Cost far Generation alon*

YEAR ENDWG MARCH FROM C OJD TPO THE END OF TARIFFPERIOD

(2) ; (3) w ' { S ) ' (6) | (7)

AddUK» nu»to

tndo) r rprli IWHIIB rtlrtaftarOTp*flo<l

tocolfn

(8)

FORH-6

cjpiWfclSlion cod JutttMonupto the end ofFYprecewcilngstart of (ariflperiod alreadyInclutttdtncol-m

(9) (10) (11>=(10)<7j

Rat* of OeprectabonDepreciatto as consktsrd

n (As In Tanff forMotffled 2000-2001

byCERC)

1

Amount of Depredation dunng the pricing

01-02 02-03 01-04 Tot»-Dep/eoafe

n

{141 05 ) (16) n - f

(PETmoteRt

I

3

Oo

I(^

NAME OF POWER STATION : FORM-7CALCULATION OF OPERATION AND MAINTENANCE EXPENSES

195-96

296-97

3CASE 1: O&M data available for 1995-96 to 1999-2000(Base O&M on the basis of act jal data)

CASE

A) Total O&M ExpensesB) Abnormal O&M expenses*

- On account of water charges- On account of other factors

C) Calculation of Base O&M (A-B)

97-984

98-995

99-006

Average95-96 TO 99-00

7

E

Base1999-00

8

X=Ex(1.1)2

11: Recent Plants for which O&M data for five year data for 1995-96 to 1999-2000 is not availableand other new plants which come up during the tariff periodYear of CommissioningCalculation of Base O&M" Y

Base2000-01

9

Xx1.06

Yx1.06

Tariff Period2001-02

10

X x(1.06)2

Yx(1.06)2

2002-0311

Xx(1.06}3

Yx(1.06)3

2003-0412

Xx(t.O6)4

Yx(1.06)"

Notes:* Abnormal O&M expenses such as on account sharp increase in water charges etc which are abnormal in natureand for which the utility shall file a separate petition

"' Base O&M (Y)= (0.025 x Capital cost) escalated at the rate of 10 percent per annum after the year of commissioning to bring it to 1999-2000 leve<For example if the capital cost of the plant commissioned in 1996-97 ts Rs 100 cores then the base for 1999-2000 iscomputed as Base O&M for 1999-2000 ( V in the format}= (0.025*100)*(1.10)3

I

{PETITIONER)

178 T

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GA

ZE

TT

E O

F IN

DIA

FX

TR

AO

RD

INA

RY

[PAUI TIT—

Sw- 4|

NAME OF POWER STATION : I FORM-8

DETAILS OF CAPITAL COST AND FINANCING STRUCTURE— , 1

Year ending March from C.O.D

BASK PROJECT FINANCIAL PARAMETERS

Approved Capital Cost at the beginning of the Project

Addition during the year

Detebon during ttie year

Gross Capital Cost (Rs crs} (A)

Depreaatwn as per Tanff (Rs cr)

Cummuiabve Dep {Rs cr) (B)

Net asset to be depreciated (C=A-B)

Wortng Capital Margin/ 25% of WC (D)

TotaJ Cost met from long term finance (C+Dj

Depreciable Gross Assets

Equity against Ongjnal Prjecl Cost

Addition dunng the year

Equity Sub-Total (E)

Debt outstanding against the ooginal Capital cost

New Loans added dunng trie year

Debt Sub-Total (F>

Total Finanong (E+F)

1

NOTE : Approved or Actual Capital Cost whichever is less.

2 3 2000-2001 01-02 02-03

(PETITIONER)

03-04

5

NAME OF POWER STATIONSTATEMENT OF CAPITAL EXPENDITURE ACTUALLY INCURRED AND CAPITAUSED/APPROVED EXPENDITURE

YEAR ENDING MARCH FROM C.O.D1 2 3 200C-01 '01-02 .02-03 jOJ-04 TOTAJ.

PARTICULARS : I

(D (2) (3) (4) .. (5) (6) (7) (3) (9)AJ I ALL MAJOR ITQKS

a)LAND

b)BUILDING

cJPLANT 4 MACHINERY

A)TJOTHER MINOR ITEMS

ToW(A)

B) Specify foflowHTg items included in 'A' above

a) Caprtalised Initial Spares

bjlnteresl During Construction Capitalised

c) Equipments for poHutron Control

Tot at (B)

Break up of sources of financing

a) Loans/ Borrowings

b) Equity

1)c) Others

Total(a+b+c)

- - - - -

NOTES:i)The break up wherever required and necessary may be given m respect of Loans and Equity financing supported with respective loan documents etc

N) Copies of Approval of PIB.'CEA/MOF;'Compeient authonies may be furnished in respect of cost of project, its components and scheme of finance.

FORM-9

"""OTALAPPROVE0 • R E M A R K S

EXPENDITURE

(10) nn

-- —

(PETITIONER)

s

9

§

I

!

INFORMATION ON ENVIRONMENTAL MATTERS AND ITS RELATED ISSUES

Name of the company

NAME OF THE POWER STATION:

FORM-9A

A. Details of Equipment, Machinery and Other Capital Assets related to environmental issues

No.

(1)

Name of the Equipment etc

(2)

Amount Included inApproved Cost

Estimates of CEA(As reckoned for

tanff)

(3)

Amount Actuallyincurred on theEquipment etc

(4)

Reasons for Deviations between coJ(3)and CoJ(4)

(5)

Impact (to be quantified) ,tf any, ofreasons identified in col(5) on

emission levels etc achieved againststandards

(6)

° Whether the equipments listed under (A) above were tn operation throughout the year. If not list the reasons therefor along with extent of duration whenthe equipments etc were out of operation.

c Enclose copies of the applicable Govt and Quasi Govt approvals / clearances relating to environmental issues

D Measures incurred for rehabilation and resettlement

E Endose copies of inspection report / certificates, issued by competent enforcement agencies of Central and State Govts.

F List details as to time .duration and reasons for instructions, if any, issued by environmental enforcement agency for partial or complete shutdown.

G Speli out details of corrective action taken to overcome the causes for such partial or complete shutdown referred (PETFTiONER)to in (F) above.

3c

NAME OF POWER STATION :STATEMENT OF OUTSTANDING LOAN , INTEREST & FINANCING CHARGES THEREON

Particulars

Balance at the BeginningAdditions During the Year {New Tranche cfLoan)

Repayments during the yearOther adjustments by additions /deletions(on account of adjustments) not accountedinCol(3)orCol(4)

Balance at the end of the year

Interest Accrued for the year/periodFinancing Charges payable during the year

Interest/financing charges patd during theyear

Balance Outstanding c/f to next year

Remarks1/12 of the loan amountMin. of amount of Row(12) &Row{4)

(2)(3)

•(4)(5)

From the Year of Commercial Operation1! 2 3

(6) = (2+3-4-5)

(7)

(8)

(9)

10) = (7+8-9)

( 1 1 )(12)(13)

FORM-10

1 • I2O00-01 |01-02 '02-03 03-04

MOTES: , ' ' ; ; . . ; : : . ; _ ' L'L ~ _ j ; ; ~I) This form is to be filled for each loan/borrowing and subsequently to be aggregated. This may be supported by respective IqmjJ&curnents. • _ _ J __iiJThe Financial years referred to in Row (1) will have to cover the period commencing from drawl of loan to the end of pricing period or till fuM repayment of outstanding loanwhichever is later. The information in respect of financial year coinciding with the date of commercial production may be bifurcated to facilitate ascertainment of information on totalInterest and Other financing Charges during construction period .iii) Remark row may be used whereever necessary to explain or darify figures/proposals ,if requried.

1 (PETITIONER)

8

!!I

ao

I

H

H

NAME OF POWER STATION

SOURCES OF FUNDS

DEBT

Amount

in FC

(Name of

Currency)

DETAILS OF FINANCIALPACKAGES

Exchange

Rate

Amount tn

Indian

Currency

(Rs in Os>

Amount

TOTAL

Rs Crs

Penod

of

Rpymt

Grace

Penod

Interest

rate%

Guarantee

Com mission

Foreign

Loan 1

Loan 2

Upfront

Fees/Exposr

Premium

%of

Total

Deirt

I

Loan 3 I

Loan 4 ,

Indian

Loan-t

FORM-11

%of

TotaJ

P C

-

rLoan-2 ' '

Total Loan (A)i

EQUITY

Foreign

Indsan

h

Total Equity(B)I

i

TOTAL FtNANCING(A+B)

Total Project Cost

NOTE Financial package details, as approved by the Competent Authority at the time of approvalshall be furnished in the Format

FC- Foreign CurrencyPC- Project Cost

of the Project,

-

7

I

_

(PETmONER)

183

(A)12345678

9101112131415


DETAILS OF OPERATION AND MAINTENANCE EXPENSES

1Breakup of O&M expensesEmployee costRepair and MaintenanceStores consumedPower ChargesWater ChargesCommunication expensesTravelling expensesInsurance

- Plant and Machinery- Other

RentSecunty expensesProfessional expensesPnnting and stationeryCorporate office expenses allocationOther ExpensesTotal (1 to 14)

LESS: RECOVERED (IF ANY)Net Expenses

95-962

96-973

97-984

FORM-12

98-995

99-006

Notes:I The process of allocation of corporate expenses to generating stations

should be specifiedII. An annual increase in O&M expenses under a given head (in

excess of 20 percent should be explained)III The data should be be certfied by statutory auditors.

(BJ Corporate office expenses{aggregate)- Direct employee expense- Repair and maintenance- Training and Recruitment- Communication- Travelling- Security- Rent- Others

(PETITIONER)

iju THE GAZETTE OF INDIA EXTRAORDINARY [PART III—SH- 4]

[

EOBBkliJ£MIL3/JHEQHMATlON3jrO BE aUBMTTEI lSR CQMPUTATIQILQF ENERGY CltARGES OFACOAL/ LIGNITE BASED STATIONS"

Company- Generating Slalion

rnatiNed Capacrty(MvV)- ~ " " ~ Configuration ol Plant-"" ~~__ _ __ -^- _ _ . _ _

SJto

i

2

4

5~

- -

6 "

_ .

7

-

QUHlntkUl

COD ol Station

Unit IUnil-ll

Unil-N

Note- COD or station shaH b« COD of last Unitcommissioned

Gron Station Heat Rite (kCaMtWh)-GHR

•During stabilisation Period-Subsequent Penod

Secondary Fual Oil Contumpllon (ml/VWh)- (Q.)n

-Ourtng sl»blll8atlon Period-Subsequint Period

Auxlllliry Entrgy Comumptlon (%)- (AUX)

During slablliwllon Period-With Cooling Towerj.without Cooling Towere

SuDttquenl Period-«*th Cooling Towers-without Cooling T o w n

Specify lype of BFP whether Becrical driven or Sleamdrrvvn

Weighted average GCV of Coal/Llonile Tor Ihe ui*preceeding 3 month! from the month of lanft lUIng(KcaWg)- «3CV),

(Submit detailed worksheet in the form 13A)

Wolghted avenige Pnce of Coal/Llgnll« for the thelpreceding 3 month* from the month of tariff fling(Rs/MT)- (Pp)

(Submit detailed worksheet in Ihe form 13A )

Walghled (vvage GCV of Secondary Fud ON for th« thepraceeding 3 months from Ihe monlti of tarffT Wing (Kcfll/K(or Kc«W.ltre) - (OCV),

(Submll deUilmJ wortdhset In Ihe form 14A)

Weighted average Price of Sec Fuel Oil tor Ihe tnepreceeding 3 months from Ihe month of larllt films(FaVMT) (P.)

(Submit detailed worksheet In Ihe form 13A )

Specify Fuel Prico adjuilmenl formula

-During siablUMllon Penod-Subsequent Period

V»lue conaldtred for Enerov Crurai compuuiUont

A3 per project specificUinn notrfication of Gol

At per PPA/ BPSA withbeneftciaries

As per notification of CERC

Note:

1 Submrt »rjjpy rrf projed « l^ f lc l»nfT~No(lflcalion~oTGol or PPA with benefkaane*

2 Submll deulled calcuttttons In support of Energy charge for subiliullon penod and subiequent period separately as per Form-153 Furnish any other relevant information4 Slrike-oul whlcfiever is not applicable

PETtTlONER

§

OETAH.S/ iNFORJIATHDNS TO BE SUBMITTED FOfl COMPUTATION OF ENERGY CHARGES OF A COAU LlGNfTH BASED STATIONS FORM 13 A

I I I I 'FoMstMorrth F« 2nd Monih For 3rt Mod* For af prov Throe Monaa

W e t t e d VKsghttd WagWedTotal avErage Total average Jolai avsrage ]

Date I

;Wetghtedwsrageof

Totai 3montfis

i

i

Coosignmeft Hos use muttipte ' , 'nos if quafcty and pnce are sameOuartsy of Coal Ugrr*8 <MMT)

Typ& Grade oJ Coa3

Amoum charged by ine co^ Co ,

Transportatcm b> rat ship, road 1

( R s > i I ,Tola! Pnce Paid . ^ . i

Un* prce o( Corf. Lignite ide'r,'ef&d (RsATO i I

i I

GCVofcoai Ligrtte (KcatKg)

-

• , , ; , i - l

Amour* ctafged bj (he Coal Co B a s e p ^ ^ {Rj ) ' ' I ' ' 1Royalty (Rs) | I [ j

Cossorduty (Rs) , ;Sales Tax (Rs.) ' I I ' i

Transportahon (Rs) t ' I

Total (Rs) ,Transporter, by ran sh,, road D | S t a n c e ( K m ) ' ' i '

Rate (RsJKmMT) ' ,

Total ftawunt (Rs) |

Twai Pnce Paid ( R s , I f

Note.

1 Fumtih tha tkiaimenUry proof w\ suppon of montrty <tata Junshed above.2 F imeh cWais of pnoe charged by tte coatltcpfe Co and by tfw (rantport Ca3 Subm* mortt i /data fcf f i r i (mco at^^bnert on mcrth to nxr th bass Intha tormBi to CERC on (juatertj basa.

prrmoiER

186 THE GAZETTE OF INDIA EXTRAORDINARY |PAJ<I III - S E C 4]

DETAILS/ INFORMATIONS TO BE SUBMITTED FOR COMPUTATION OF PNEF|0Y CHARGES OF A GAS

C o m p a n y Gennratmg Slatlon

*ila«e<j Cap^yrMW) Configuration of Pl,nl

1

2

3

_

•

s

8 _

COD of Station

Unit/ Block I

Unlock -Untl/ Block N

Note- COD of station shall be COD of last Unit/Block comfwsikined

0 n » * Button H u t Rat* (KCitHWh) GHR

Open Cycle Operation

Combined Cycle Operation

Auxiliary Energy Conn r.pllon (%) (AUXJ

Open Cycle Operjlion

During ilablllsellon Period

Subnequenl Ptriod

ComtiUwd Cycle Operation

-During itablllflation Period

SuOiequtnl Period

Welghlad average OCV of gaa/Naptnru»/ liquid Fuel/SFO (or the lh«prKeedlng 3 monlht rrom m e moniii of Wrff fling (Kcal/ SCM o(KcaWg) (GCV), or (GCV).

(Submil denned worfcshen in me form 1<A )

Wilghted avernse Price of pjiuNaphtlW liquid Fuel^Sro for Ihe IrnpTKaedlng 3 monlht from Ihe month or larirf Tiling (Rs / Thouaund CM orRtMT) (pp)

(Submit a*(»lled wortuheet m lha form M A )

Specify Fuol Pric* adjutlmenl rormuia

Op*n Cycle Oparallon

Dunng itabfllsation Period

Subsequent Period

Combined Cycl* Operation

During ttabllluUcn Period

Subicquanl Period

J NAPHTHA/ LIOg|D FU£L BASED STATIONS

Vilui contldefed for fp*rqy Charga compuUtloni

Ai per project ipeeffictariff notification of Gol

As per PPA/ BP&A withbenefldanej

Aj per notirrjiuon oCERC

Not*

1 Submit a copy of protect specific tariff Notification of Gol or PPA with beneficiaries

2 Submit detailed calculation! In tupprni of Energy charge for open cycle and combined cycle operation separately » per form- 15

3 Fumnh any other rclevanl Information

4 Strike-out whichever Is not applicable

PETITIONER

5

DFTAli » KFORMAT1OHS TO BE SUBMITTED FOR COMPUTATION OF EKEftGY CHARGES OF A GASJ NAPHTHA! LtfflHn R I H BASED STATIONS; SFO IN SOJD F JEL BASED

STATtOWS

j FwissMorth | For2nd Month

FOPM 14A

j For 3fd lAm*

Wetted WoghtBd WaoMadTotal aKH^ga Total avenge Total avsraoa

averagaTotal erf 3

i l

Date ' |CoisgnmentNo

Quantity of U<)l»d Fuel/SFQ tSas (WMT) f MCM ' v

Typsf Grade 01 UHIKJ FuetSFO ~

(GSiFit rtarged b> ihe Fu& Cofs) i _

Transportabon by rrt shfk road4>qMine (Rs | ,Trtai Pnco Pwd , ^

Unl prtd of Ljqirt Fud fGAS 1iloiwrad (^A*T);(FWIIXK>OJ) {

GCVo/Fuel 1 ' ~*1 1 1 I

(Amount d w a e d b j t t a F ^ C ^ „ , , „ | ^ |

C « o r * * (Rs.) , 1 ,

SateTw (Rs) , ' |

'Transportation {Rs i

Total (Rs-iTransportaJonbrrM-sh^fnMd O t J t a n a l {Kn]1 |

ToSat Amount (Rs) ' ^_ _Toal Pnca Paul i n . . '

Nc48

1 Fumrth the (*ooHiwr*Tf proof nuBfatoffK'Jn^dUafuirfclwlabme2 Fumgt:d«^isa:pn»cttara«dbrtii«Fu«iCo.»idbytubanpottCo3 Submit monihtT * r a (or tint pnc« id|uu»«nt on tr«l> It men* bas« n tt» VUTBS to CERC or <)i'3tar*y t m t


Sr.No.

1

2

3

4

5

6

METHOD OF CALCULATION OF RAT^

Description

Rate of Energy Charge from Sec. FuelOil/ Alternate Fuel - (REC),

Heat Contribution from SFO / AlternateFuel - (Hi)

Heat Contribution from SFO / AlternateFuel - (HP)

Specific Primary Fuel Consumption -(Qp)n

Rate of Energy charge from PrimaryFuel - (REClp

Rate of Energy charge ex-bus per kWh(REC)

OF ENERGY CHARGE

Formula

*(Q.)nXP,

*(Qs)nX(GCV).

= GHR- H,

* Hp/ (GCV)p

= (Qp)n X Pp

= ((REC)S + (REC)P)/(1-(AUX))

FORM-15

Value

Note

i Th- '=ite of energy charge shall be computed separately for stabilisation period andsubsequent period in case of coal/ lignite fired plants.

2 The rate of energy charge shall be computed for stabilisation period and subsequentperiod and for open cycle and combined cycle.separately, in case of gas/ liquid fuelfired plants.

3 The total energy charge shall be worked out based on ex-bus energy scheduled to besent out in case of plants covered by ABT, and ex-bus energy delivered/ sent out incase of plants not covered by ABT, as the case may be.

189

1.2.3.

4.

5.

6.7.

8.9.10.

11.

12.13.14.

15.

16.

17.18.19.

Checklist of Docmneijts ffpr tariff filing for HydroStations(Part-m

Approval of the Project from Competent Authority.Capital cost approval from the Competent Authority.Equity participation agreements and necessary approval for foreignequity.Stationwise/Corporate audited Balance Sheet and Profit & Loss A/cwith all the schedules & annexes from the Financial year 1998-99onward.A copy of project specific tariff Notification of GO1 or PPA withbeneficiaries.Statement of Tariff proposal (Form No.l)Information required for computation of energy charge & capacityindex. (Form No .2)Summary of various components of Fixed charge (Form No.3)Computation of Interest on Loan (Form No.4)Statement of Calculation of Average Rate of Interest on WorkingCapital Loans (Form No.5)Statement of Depreciation on various assets as per CERC norms(Form No. 6)Calculation of Operation & Maintenance Expenses (Form No.7)Details of Capital Cost and Financing structure (Form No.8)Statement of Capital expenditure actually incurred and capitalised/approved expenditure (Form No.9)Information of Environmental matters and its related issues (FormNo.9A)Statement of outstanding loan, interest and financing charges thereon(Form No. 10).Details of Financial packages (Form No.l 1)Details of Operation and Maintenance expenses (Form No. 12)Any other relevant information(Please Specify)

]90 THE GAZETTE OF INDIA EXTRAORDINARY |PAKT III—Sfic 4]

TARIFF FILING FORMS -PART-II (HYDRO GENERATING COMPANY)

— _ _ —

Name of the CompanyFORM-1

Name of the Power Station :

Brief Description of event leading to tariff flllng:-

STATEMENT OF TARIFF PROPOSALS FOR —COVERING TARIFF PERIOD FROM — TO —

As existing Proposed

1 .Calculi

i f

12

1 3

14

1 5

16

—

2.Primar

PARTICULARS 2000-01 01-02 02-03 03-04

(1)

itlon of Fixed Charges(Rs In Crs)




Advance against Depreciatlon[FORM-3 ]


O &^M_Expe~nses JFORM-3 ]

~~ " " TOTAL

y Energy Charges In Rs Crs.(As per FORM-2)

(2) (3)

-

„

-

(4)

-

_

—

-

(5)

Note:

Annual Capacity charges plus annual pnmary energy charges shall be equal to the Annual Fixed Charges

(PETITIONER)

191

NAME OF POWER STATION : FORM-2INFORMATION REQUIRED FOR COMPUTATION OFPRIMARY ENERGY CHARGE & CAPACITY INDEX

SI. No.123

4

5

6789

1011

Description

Installed CapacityFree power to home stateDate of commercial operation

Unit-1Unit-2Unlt-3

Type of Stationa) Surfaceb) UndergroundType of excitationa)Rotating exciters on generatorb) Static excitationDesign EnergyAuxiliary ConsumptionTransformation lossesPrimary Energy Rate(90% LVC of central generatingstation of the concerned Region)Primary Energy ChargeCapacity IndexNormative value

MW%

Gwh%%

paise/Kwh

Rs in Crs

85%

Existing 2000-2001

As per CERC norms fortariff period 2001-2004

(PETITIONER)

I—•

1

|I

11

1 2

1 3

1 4

1 5

1 6

NAME Of POWER STATION

Year ending March 1 2 3

SUMMARY OF VARIOUS COMPONENTS OF FIXED CHARGES

WTEREST ON LOAM;As per Fwm-4)

INTEREST ON WORKING CAPITAL[As per Form-5)

DEPRECIATION (A)

(As per Form-6)

ADVANCE AGAINST DEPRECIATIONLoan repayment during year(As per Form 4)1/12Ui of trie. Loan(Loan as per Form 4)AMOUNT ADMISSIBLE UNDER AAD (B)

ADVANCE AGAINST DEPRECIATION (B-A)

RETURN ON EQUITY

Equity —Foreign—Indian

Total Equity {Rs Crs)

Return on foreign EquityReturn on Indian EquityRETURN ON EQUITY (Rs crs)

O & M EXPENSES(As per Form-7}

FROM C.O.D.TO END OF THE TARIFF4 5 I 2000-01 01-02

I .I I

r

1

1

r

1I

ii

i

r l -•

! i

1 I

i

(PETTTTONER)

FORM-3

PERIOD1 02-03 03-04

I

4 - -

i

1

3

oo

to

NAME OF POWER STATION :FROM THE C.O.D.

Year ending MarchCOMPUTATION OF INTEREST ON LOANCOMPUTATION OF DEBT CHARGES

1 LOAN-1 Lean in Orgnal CurrencyPrincipal Repayment

[ Balance PayableInterest in Rs Crs

LOAN-2 Loan in Orginal Currency ,Principal Repayment 'Balance Payable

interest m Rs Crs

1 LOAN-3 Loan in Orgwaf CurrencyPnncipal RepaymentBalance Payable

Interest n Rs Crs

, LOAN-4 Loan in Orginal CurrencyPrincipal RepaymentBalance Payable

.Interestin Rs Crs

Yearly instalment (Rs. Crs) iCummulative RepaymentYear End Debt(Cun Exc Rate)B/S DebtTotal Interest payment

INTEREST ON LOAN FOR TARIFFInterest cha/ged to IDC

NOTE- Repeat details for additional loans, if any.

1

-

2

i

FOfUM

3

-

4 . '2000-01 01-02 ,02-03 03-04

(PETITIONER)

194 THE GAZETTE OF INDIA; EXTRAORDINARY [PART III—SEC. 4]


Statement of Calculation of Average Rate of Interest onCapital Loans And Amount of Working Capital

SL.NO.

1abcde


2


Year ending March


0 & M expenses -1 monthSpares*Recievables- 2 monthsTotal Working Capital (Rs cr)



INTEREST ON WORKING CAPITAL (Rs cr)

'Maintenance spares at actuals but not exceedingone year's requirments less value of one fifth of initialspares already capitalised.

CC=CASH CREDIT

AMOUNT(Rs. InCrs)

3

2000-01


4

2001-02

Working

INTEREST

5=3M

2002-03 2003-04

(PETITIONER)


STATEMENT Of DEPRECtATIOK ]

M a l t of approved Expaadfou* onA>Mt>

ActuiJ coat bau tatted to Apprond Coct for Gaaarrton aton*

YEAR ENDWG MARCH FROM COX). UTPO TtE END OF TARIFFPERI 00

(') (2)

Ik) 1 ALL UAJOR ITQtS

aJLANDbJBUtLDWGC)PLAHT & MACHINERYd> -•

H^OTHE* HtHO* ITEMS

Tot* (A)

B) Specify Mowing tome includedIn 'A' above.

a) Captaltsed Iraki Sparesbpnterest During Construction .

Cap**s«Jc) Equipments fcr poiJulion Conko)

Tottl(B)

(4) (5) .

I M H u TOTAL H Oil

AdMfc»*atoFERVlvtodHndofFT

a<H«Tpwtod

(6)

AddWortricaptalutionupto<H*ndofFTpracmAngttvtoflvffipartod *kwtyhmdu6»dUicol .(7)

(9)

-

FORM-6

ToW \ammmLtJt

- p.no) [HMio)-m

-

Rat* ofD^j»»Oit)o

n(A»

byCERC)

-

(RclnCrs)

:

uconsldardin Tariff for2DD*-Z001

Amount of

I(13)

- - --

(PETITIONER}

Ii !

3*fnclittoii during th* T

02-03 ' OS-04 TotalDepnciatkl

n

•

(15) (16) (17) ,

- -

5

o

!

!

I

NAME OF POWER STATION

CALCULATION OP OPERATION AND MAINTENANCE

11995-96

21996-97

31997-98

4CASE 1: O&M data available for 1995-96 to 1999-2000(Base O&M on the basis of actual data)

A) Total O&M ExpensesB) Abnormal O&M expenses*

- Additional security expenses- &ltabon- Over staffing- Any Other

C) Calculation of Base O&M (A-B)

1998-995

EXPENSES

1999-00Average

95-96 to 99-007

E

CASE II: Recent Plants for which O&M data for 1995-96 to 1999-2000 is not availableYear of CommissioningCalculation of Base O&M"

Base1999-00

8

X=Ex(1 if

Y

FORM-7

Base2000-01

9

Xx 1 06

Yx1 06

Tanff Penod2001-02

10

X x (1 06)2

Yx(i mf

2002-0311

Xx(106)3

Y x (1 06)3

2003-0412

Xx(1 06*

Y x (1 06)*

* Abnormal O&M expenses such as- Secunty expenses on account of insurgency- Due to abnormal siltaton- There has been a significant redeployment of staff from completed projects of NHPC to those under construction during 1999-2000This led to a significant drop in O&M expenses in 1999-2000Therefore, the norms based on past data of actual O&M expenses will overestimate the normative baseNHPC should adjust the O&M data downwards under the assumption of employment level as in 1999-2000This implies that employee remuneration for the past data should be adjusted on the basis of employment in 1999-00

The utility shall file a separate petition for claiming the abnormal O&M expenses" Base O&M= (0 015 x Capital cost) escalated at the rate of 10 percent per annum to bnng it to 1999-2000 levelFor example tf the capital cost of the plant commissioned in 1996-97 is Rs 100 cores then the base for 1999-2000 is computed as followsBase O&M for 1999-2000= {0 015*100)*(1 10)3

(PETITIONER)

3

NAME OF POWER STATION : FORM -8

DETAILS OF CAPITAL COST AND FINANCING STRUCTURE


BASK: PROJECT FINANCIAL PARAMETERS

Approved Capital Cost at the beginning of the Project


Deletion during the year

Gross Capital Cost (Rs crs) (A)

Depreciation as per Tariff (Rs cr)

Cummulative Dep (Rs cr) (B)


Working Capital Margin/25% of WC <D)

Total Cost met from tong term finance (C+D}


Equity against Original Project Cost



Debt outstanding aga'nst the original Capita) cost

New Loans added during the year

Debt Sub-Total (F>

Total Financing (E+F)

1

NOTE : Approved or Actua! Capita) Cost whichever is less.•

2 3 2000-2001

(PETITIONER)

01-02;

02-03 03-04

198 T

HE

GA

ZE

TT

E O

F IN

DIA

: EX

TR

AO

RD

INA

RY

[PAW

r III—S

EC

. 4)

NAME OF POWER STATIONSTATEMENT OF CAPITAL EXPENDITURE ACTUALLY INCURRED AND CAPITALISED/APPROVED EXPENDITURE

PARTICULARS

(1)A) 1 ALL MAJOR FTEMS

a) LAND

bJBUILDING

c)PLANT 4 MACHINERY

AHfOTHHl UMOft ITEMS

Total (A)

B) Specify Mewing items included in 'A' above,a) CapttaJised initial Sparesbjlnterest During Constructor! Caprtaltsed

c) Equipments for poltutiofi ControlTotal (B}

Break up o4 sources of financinga) Leans/ Borrowings

b) Equity

c) Others

TotaHa+b+c}

YEAR ENDING MARCH FROM C.O.D1

-

2j 3; . ,2000-01

(3)

01-02

(4) i ... , (5) (6)

-

-

— - —

02-03

(7)

—

-

C*04

(8)

—

TOTAL

(9J

-

— —

-

NOTES: 1iJThe tweak up wherever required and necessary may be given in respect of Loans and Equity financing supported with respective loan documents etc.

li) Copies of Approval of PIB/C6A/MORCompeter\t authofibes may be furntshed in respect of cost of project, rts components and scheme of finance.

' ' I"

FORM-9

TOTWLAPPROVED

EXPEND m j R EREMARKS

<10) ! (11)

_

_

- —

— —

i

—

(PETITIONER)

190

NAME OF THE POWER STATION

tN FORMATION OF ENVIRONMENTAL MATTERS AND 1

A. Details erf environmental issues

Amount Included inApproved Cost by CEA(As reckoned for tariff)

(1)

AmountActuallyincurred

(2)

Reasons forDeviations

between col{1) andCo)<2)

(3)

TS RELATED ISSUES

Amount includedin for Catchmentarea treatment(4>

R& RCharges(5)

Compensator

yAfforestation

(6)

Amountincluded forenvironmentmanagementplan(7)

Any otherissue, pleasespecify(8)

FORM-9A

Total

B. Enclose copies of the applicable Govt and Quasi Govt approvals / clearances relating to environmental issues

C. Enclose copies of inspection report / certificates, issued by competent enforcement agencies of Central arid State Govts.

D. List details as to time .duration and reasons for instructors, if any, issued by environmental enforcement agency for partial or complete shutdown

E. Spell out details of corrective acton taken to overcome the causes for such partial or complete shutdown referred to in (D) above.

(PETTTIONER)

200 T

HE

GA

ZE

TT

E O

F IN

DIA

, EX

TR

AO

RD

INA

RY

[PA

RT III—SE

C. 4]


STATEMENT OF OUTSTANDING LOAN , INTEREST & FINANCING CHARGES THEREON

Particulars

Balance at the BeginningAdditions Dunng the Year (New Tranche ofLoan)

Repayments during the yearOther adjustments by additions /deletions{on account of adjustments) oot accountedin C o i ^ o r Col(4)

Bafance at the end of the year

Interest Accrued for the year/penod

Financing Charges payable dunng the year

Interest/financing charges paid during theyear


Remarks1/12 of the loan amountMm. of amount of Row(12) &Row(4)

(2)(3)

(4)(5)

From the Year of Commercial Operation1

(6) = (2+3-4-5)

(7)(8)

(9)

10) = (7+8-9)

(11)(12)(13)

2 3 ' '2000-01 01-02 02-03 ,03-04' i i

-

—

NOTES: i u _ | .

I) This form is to be fifled for each loan/borrowing and subsequently to be aggregated. This may be supported by respective loan documents.: |__

n)The Financial years referred to in Row {1) wit! have to cover the period commencing from drawl of loan to the end of pricing period or at fufl repayment of outstanding loanwhichever is later. The informat>on in respect of financial year coinciding with the date of commercial production may be bifurcated to facilitate ascertainment of information on totalInterest and Other financing Charges during construction period .ai) Remark row may be used wherever necessary to explain or clarify figures/proposate M re<juned

' ' I ; (PETTTtONER)

s

-fc.

2NAME OF POWER STATION :

SOURCES OF FUNDS

DEBT

Amount

in FC

(Name of

Currency)

DETAILS OF FINANCIAL PACKAGES

Exchange

Rate

Amount in

Indian

Currency

(Rs. in Crs)

Amount

TOTAL

RsCrs

Period

of

' Rpymt

Grace

Period

Interest

rate%

Guarantee

Commission

Foreign

_oan 1

Loan 2

Upfront

Fees/Ex posr.

Premium

%of

Total

Debt

Loan 3 '

Loan 4

Indian.

Loan 1

Loan 2 I

Total Loan (A)

EQUITY

Foreign.

Indian

r

FORM-11

%of

Total

P.C.

I

iI

1

i

Total Equity(B) i

TOTAL F1NANC1NG(A+B) '

Total Project Cost

NOTE : Financial package details, as approved by the Competent Authority at the time of approval of the Project,shall be furnished in the Format

FC- Foreign CurrencyPC- Project Cost

(PETmONER)

-

202 THE GAZETTE OF INDIA: EXTRAORDINARY [PAK i III—Sac. 4]

NAME OF THE POWER STATION FORM-12


(A)123

4

6S

(B)

1Brtakup of 0AM axpansasConsumption of Stores and Spara)Repair and MaintenanceAcfmmlslnitlv* Expenses

- Insurance-Rant• Elactriclty Chnryea- Travelling and conveyance- Staff Car- Telephone, telex and postag*- Advertising- Entertainment- Corporate management txpenses-Othws

Employs* Coal- Salaries, wages and illowancos• Stiff wstfare exp*n*«>Conxmta office (xpansei allocationTotal (1 to 5)LES3: RECOVERED (IF ANY)Nat Expvniat

Notes'

1995-962

1986-973

19S7-984

1998-99G

I. The procass of allocation of corporate sxpen»«» to generating stiiDona should be spacifiadII. An annual Increas* In O*M expanMs under a glwn head im »xc«s of 20 parcant should oe explainwi)III The data should ba corttfled by statutory auditors

Breakup of ccrporata axpansM (Aggregatt|- Employ** expansaa- Rapalr and maintananca- Training and Racrultmant-Communication- Travelling-Sacurtty-Rant- Others

1988-006

(PETITIONER)

203

Checklist of Documents for tariff filing for TransmissionSvstems(Part-Iin

1.

2.3.

4.

5.

6.7.8.9.10.

11.

12.13.14.

15.

16.

17.18.19.

Approval of the Project from Competent Authority.

Capital cost approval from the Competent Authority.Equity participation agreements and necessary approval for foreignequity.Regionwise/Corporate audited Balance Sheet and Profit & Loss A/cwith all the schedules & annexes from the Financial year 1998-99onward.A copy of project specific tariff Notification of GOI or BPTA withbeneficiaries.Statement of Tariff proposal (Form No.l)Details of Transmission lines & substations. (Form No.2)Summary of various components of Fixed charge (Form No.3)Computation of Interest on Loan (Form No.4)Statement of Calculation of Average Rate of Interest on WorkingCapital Loans (Form No.5)Statement of Depreciation on various assets as per CERC norms(Form No.6) ^Calculation of Operation & Maintenance Expenses (Form No.7)Details of Capital Cost and Financing structure (Form No.8)Statement of Capital expenditure actually incurred and capitalised/approved expenditure (Form No.9)Information of Environmental matters and its related issues (FormNo.9A)Statement of outstanding loan, interest and financing charges thereon(Form No. 10).Details of Financial packages (Form No.l 1)Details of Operation and Maintenance expenses (Form No. 12)Any other relevant information (please specify)

i i

204 THE GAZETTE OF INDIA EXTRAORDINARY [PAR r in—SEC 4]

TARIFF FILING FORMS PART III (TRANSMISSION COMPANY)

FORM-1

Name of the Company

Name of the Power System :

DateofCOMMISIONINGBrief Description of event leading to tariff fillng:-

STATEMENT OF TARIFF PROPOSALS FOR COVERING TARIFF PERIOD FROM

TO....As existing Proposed

PARTICULARS 2000-01 01-02 02-03 03-04

I.Calcul

1 1

1 2

1 3

1 4

1 5

1 6

(Datlon of Fixed Charges(Rs. In Crs.)




Advanue against Depreciation[FORM-3 ]


O & M Expenses [FORM-3 ]

TOTAL

(2) (3) (4) (5)

PETITIONER

205

FORM-2

DETAILS OF TRANSMISSION LINES & SUBSTATIONSYear: 1995-96 to 1999-2000

NAME OF REGION -

NAME OF POWER SYSTEM

Transmission lines

S.NO.

1234---

Substatlor

S.NO.

1

234--

Name ofline

From

IS

Name ofSubstation

Type ofline

AC/HVDC

To

Type ofSubstationConventional/GIS

S/CorD/C

Voltagelevel kV

Voltagelevel kV

Linelength Km,

No. of transformers &MVA capacity/Reactors

Commercialoperation Date

Commercialoperation Date

(PETITIONER)

206 T

HE

GA

ZE

TT

E O

FIND

IA

EX

TR

AO

RD

INA

RY

|P\B

I III—Srr

4]

1

1 1

1 2

1 3

1 4

1 5

1 6

HAKE OF POWER SYSTEM

Year andatg Uvch 1 2 3

, FORM-3

FROM C.O.D.TO END OF THE TARIFF PERIOD4 5 2000-01 01-02 02-03 03-M

i i I

Summary of various components of Fixed ctiam» ! I

NTEREST ON LOANAs per Form-4)

INTEREST PH WORKING CAPITAL[As per Form-5)

DEPRECIATION (At

(As per Form-6)

ADVANCE AGAINST DEPRECIATION 1AAD)Loan repayment during year(As per Form 4 )1/12th of the Loan(Loan as per Fom 4)AMOUNT ADMISSIBLE UNDER AAD (6)

ADVANCE AGAINST DEPRECIATION (B Al

RETUF1NON FOUITY

Eqj ly —Foretgn—Indian

Total Equity (Rs in Cfs )

Return on foreign EqutyReturn on Indian EaifllyRETURN ON EQUITY (Rs m Crs )

O S M EXPENSES

Lenglh at aJI trie lines m rhe system in kms His)

NO of Bays in ine System (BNs)

Toial C*M atowed (of aa rines {TOMLLJ= LLs x NOMLL (Form 7)

Total OAM aBowed for aB SubStns (TOMBM = BNs x NOMBN (Form 7)

Total permissibla OSJ = (TOMLL+TOMBM)

(PETITrONER)

NAME OF POWER SYSTEM :FROM THE C.O.D.

Year ending March 1 21 o COMPUTATION OF INTEREST ON LOAN

COMPUTATION OF DEBT CHARGESLOAN-1 LoarNn Orginal Currency

Principal RepaymentBalance Payabte

Interest in Rs Crs

LOAN-2 Loan in Orginal CurrencyPnncipal RepaymentBalance Payable

Interest in Rs Crs

LOAN-3 Loan in Orginal CurrencyPnnapal RepaymentBalance Payabte

Interest in Rs C's

LOAN-4 Loan in Orginal CurrencyPnnapal RepaymentBalance Payable

Interest in Rs Crs

Yearly irstalment (Rs in Crs )Cummulative RepaymentYear End Debt(Curr Exc Rate)B'S DebtTotal Interest payment

INTEREST ON LOAN for tariffInterest charged to IDC

NOTE Repeat details for addrbonal loans if any

3 4

iFORM-4 '" " 1

2000-01 01-02 '02-03 |03-04

(PETITIONER)

2 0 8 T H E G A Z E T T E O F I N D I A • E X T R A O R D I N A R Y | P A R T I I I — S E C 4 ]

NAME OF POWER SYSTEM : FORM- 5

Statement of Calculation pf Average Rate of Interest on Working CapitalLoans And Amount of Working Capital

SL.NO.

1abcde


2


Year ending March


0 & M expenses -1 monthSpares*Recievables- 2 months

Total Working Capital (Rs. in Crs.)



AMOUNT(Rs. inCrs)

3

2000-01

INTEREST ON WORKING CAPITAL (Rs. In Crs.)


4

2001-02

INTEREST'AMOUNT

5=3*4

2002-03 2003-04

*Note:Maintenance spares at a normative rate of 1 % the capital cost.Cost of maintenancespares for each subsequent year shall be revised at the rate applicable for revision ofexpenditure on O& M of transmission system.

CC=CASH CREDIT

(PETITIONER)

§

NAME Of POWER SYSTEM :

STATEMENT OF DEPRECIATION

Adiat cost b * » Ihmttd lo Approved COM for trrmsnration ilont tuMmUoitcFERVapto

!«»«•«(•tat afar*

Dttiftj of ipprmad EipcMfKura on YEAR EHONG MARCH FROM C.O.D.TPO THE END OF TARTF PERfOO ,•*>*•*»•*,Au«ts kKb*dki

..... **« j^r0"(1) (!) (3) (4) (5) (Bf (7) (8)

A) LJUJ. «*JOS ITEMS

a) LAND

c)PLANT £ WACHWERV<i)

MLOTHGR WHOB tlHtS

To«(*)

B) Specify totowng tems mdudedm 'A' above

a) Caprtaised ItAal Sparesb)f rrteres) Dimng ConstnjdMi

Capttatisedc) B9uvrT>^nt3 for polubon Control

ToMjB)

FODM-1

m*>th*Mdof FTpncndbig«t>rtt* tutuptrfod *l»Hlytnctudwlln

(9) <1O) (1l}-nOM7)

—

)M*afD^rad*tian,'A*HotJ*Ml

byCSRC)

(12)

-

D«p»ci*4ton j mauwtoHcon*t(t*ntbt Tariff tor

•

(13) ' (14)

—

— -

-

02-03 O«4 Tttu

(15) (16! (17)

—

Q'EfUIUWLK)

too

O

§%


TARIFF FILING REQUIREMENT FOR OPERATION AND MAINTENANCE EXPENSES AND fTS COMPUTATION

1

(A) Total O&M Expenses

(B) Abnormal O&M expenses*

- On account of additional security expenses

- On any other reason

(C) Data for calculation of Base O&M (A-B)

OML (O&M for lines) = 0 7x (C)

OMS (O&M for substations) = 0.3 x (C)

Line Length at the beginning of the year in KnrtsUne Length added in the the year in KmsLine length at the end of the year

LL { Average Line length in the Region in Kms)No of Bays at the beginning of the yearBays added in the yearNo of bays at the end of the year

BN (Average Number of Bays in the Region

AVOMLL (OML/LL)**AVOMBN (OMS/BN)**

1995-962

1996-973

1997-984

1998-995

1999-20006

Average95-96 to 99-00

7

Base1999-2000

8

Base2000-01

9

Tariff Period2001-02 I 2002-03 I 2O03-O4

10 | 11 I 12

NOMLL (Allowable O&M per unit of line length} ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ H ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ H E3=E2x(1 1)' I E3x(1 06) I E3x(1 06)^ [ E3x(1.O6)J I E3x(1 06}4

NOMBN (Allowable O&M per bay) ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ f l F3=F2x(1.1)2 | F3x(1 06) | F3x(1 06)2 | F3x(1 06)3 | F3x(1 06)'

NOTES:1) * Abnormal O&M otp&nses such as or account of security expenses which are abnormal irt nature for which ttie utility shall file aseparate petition2) '* Average to be reported in column 7 should Sum of OML for ttie penod 1995-96 to 1999-2000be computed as(Normalised O&M expenses for lines, E2) Sum of LL for tt>e penod 1995-96 to 1999-2000

Same procedure is to adopted for computing the average of normalised O&M expenses for sub stations on the basis of number of bays (F2)

3) O&M Expenses' on account of network expansion in an given financial year shall be computed on the basis of relevant nomatjve O&M expenses per unit of line length or number of baysThe normatjve O&M for 1999-2000 (NOMLL or NOMBN as the case may be) snail be escalated at 6 percent per annum to bring them to the level ofrelevant year. These normative expenses multiplied by the line length or number of bays as the case may be, for the year in wtiichexpansion has taken place shall grve the O&M expenses on account of network expansion per yearFor the year of commissioning, trie O&M expenses for lines and for bays added shall be apportioned for on the basis of their months in operation dunng that year

PETITIONER

Form 7

NAME OF POWER SYSTEM :


BASIC PROJECT FINANCIAL PARAMETERS

Approved Capital Cost at tne beginning of the Project


Detetxxi during ttie year

Gross Capital Cost (Rs crs) (A)

Depreciation as per Tariff {Rs cr)

Cummulattve Dep (Rs cr) (B)


Working Capital Margin (25% of WC ) (D)

Total Cost met from long term finance (C+-D)


Equity against Onginal Prject Cost

AdditKxi dunng the year


Debt outstanding against the ongjnal Capital cost

New Loans added dunng the year

Debt Sub-Total (F)

Total Financing (E+F)

FORM-8

CAPITAL COST AND FINANCING STRUCTURE ' '

1

NOTE : Approved or Actuai Capital Cost whichever is !ess.

2 3

;

2000-2001 01-02 ,02-03 03-04

(PETITIONER)

212 _

__

TH

E G

AZ

ET

TE

0^IN

DIA

E

XT

RA

OR

DIN

AR

Y

|P\i i III -S

i<

4|

NAME OF POWER SYSTEM FORM-9STATEMENT OF CAPITAL EXPENDITURE ACTUALLY INCURRED AMD CAPITA USED/APPROVED EXPENDITURE

Y E A R E N D I N G M A R C H F R O M C O D1, 21 3- 2000-01 01-02 02-03 03-04 TOTAL TOTAL

PARTICULARS APPROVED REMARKSEXPEfCNTURE

(1) (2) (3) I (4) (5) (6) (7) {8} (9} (10) l">A) 1 ALL MAJOR ITEMS

a) LANDbJBUILOINGc)PLANT & MACHINERY

APKITHER MTMCW ITEMS

ToUKA)

B) Speedy fottowmg items included in 'A' abovea) Capitalised InrtaJ Sparesb)lnterest Dumg Construction Caprtalwed

c) Proviston fof pottubon Control*********

Break up of sources of financinga) Loans/ Borrowings

b) Equity

1)c) Others

NOTES" ,i)The break up wherever requred and necessary may be given m respect of Loans and Equrty financing st^iported with respective loan documents etc

ti) Copies of Approval of PIB/CEA/MOF/Coropetent authonbes may be furnished r respect of cost of project, its components and scheme of finance (PETITIONERS

HINAME OF THE POWER SYSTEM

INFORMATION ON ENVIRONMENTAL MATTERS ANC

A. Details of environment

AmountIncluded

InApprovedCost byCEA(Asreckonedfor tariff)

(D

AmountActuallyIncurred

(2)

Reasonsfor

Deviationsbetween

col(1)andCol(2)

(3)

al issues

CompensatoryAfforastatlon(4)

Amountincludedforenvironmentmanagement plan(5)

F0RM-9A

> ITS RELATED ISSUES

Any otherIssue,pleasespecify(6)

Total

B. Enclose copies of the applicable Govt and Quasi Govt approvals / clearances relating to'environmental Issues

(PETITIONER)

4 -

o

g>

o

I

NAME OF POWER SYSTEM : FORM-10

STATEMENT OF OUTSTANDING LOAN , INTEREST & FINANCING CHARGES THEREON

Particulars

3alance at the BeginningAddiUons During ttie Year (New Tranche ofLoan)

Repayments dunng the yearOther adjustments by additions /deletions(on account of adjustments) not accountedin row(3) or row(4)

Balance at the end of the year

Interest Accrued for ttie year/period

Financing Charges payable during the year

Interest/financing charges paid during theyear


Remarks1/12 of the loan amountMin.of amount of Row(12) &Row(4)

(2)(3)

(4)(5)

From the Year of Commercial Operation

1, 2 3

(6) = (2+3-4-5)

V)(8)

(9)

10) = (7+8-9)

( 1 1 )(12)

(13)

2000-01 01-02 02-03 03-04

NOTES:

i) This form is to be filled for each loan/borrowing and subsequently to be aggregated. This may be supported by respective foan documents., _ i _

ii)Tbe Financial years referred above will have to cover the period commencing from drawl of loan to the end of pricing period or till fufl repayment of outstanding loan whichever islater. The information in respect of financial year coinciding with the date of commercial operation may be bifurcated to facilitate ascertainment of information on total Interest and Otherfinancing Charges during construction period .iii) Remark row may be used wherever necessary to explain of clarify figures/proposals ,rf requried,

{PETITIONER)

to


SOURCES OF FUNDS

DEBT

Amount

mFC

(Name of

Currency)

Financial package details :

Exchange

Rate

Foretgn

Loan 1

Loan 2

Loan 3

Loan 4

Indian

Loani

Loan2

Amount in

Indian

Currency

{Rs in Crs)

Amount

TOTAL

Rs Crs

Penod

of

Rpymt

Grace

Penod

Interest

rate%

FORM-11

Guarantee

Commisson

\.

Upfront

Fees/Exposr

Premium

%of

Total

Debt

i

%of

Total

PC

-

\

Total Loan (A) ,

EQUITY

Foreign

Indian

Total Equity{B)

i

TOTAL FINANCING(A+B)

Total Project Cost Ir

NOTE Financial package details, as approved by the Competent Authority at the time of approval of the Project, and any subsequent modificationsshall be furnished in the Format ] , I '

FC- Foreign Currency J fPC- Project Cost ' |

I

~ " {PETITIONER)


NAME OF POWER SYSTEM: FORM-12


1(A) Breakup of O&M expansesEmployee CostRepair and MaintenancePower ChargesTraining and RecruitmentCommunication ExpTravelling ExpPrinting and StationeryRentMisc ExpInsuranceOthersCorporate office expenses allocationGrand totalLeas: Recovery (If any)Net O& M expenses

1995-962

1996-973

1997-984

1998-995

1999-20006

Notes:I. The process of allocation of corporate expenses to various systems should be specifiedII. An annual increase In O&M expenses under a given head In excess of 20 percent should be explainedIII. The data should be be certified by statutory auditors.

(B)Corporate office Expenes(aggregate)Employee CostRepair and MaintenancePower ChargesTraining and RecruitmentTravelling ExpensesPrinting and StationeryRentOthersTotalLess: Recovery (if any)Net Corporate expenses

(PETITIONER)

217

Appendix II

Depreciation Schedule

Description of Assets

A. Land owned under full title

B. Land held under lease:

(a) for investment in land.

(b) for cost of clearing site

C. Assets:Purchased new :(a) Plant and machinery in generating

Stations including plant foundations :-

(i) Hydro-electric

(ii)Steam-electric NHRS& Waste Heat RecoveryBoilers/Plants

(iii)Diesel-electric &gas plant

(b) Cooling towers andcirculating water systems

UsefulLife(yrs)

1Infinity

The period oflease or theperiod remainingunexpired on theAssignment ofthe lease.

The period oflease remainingunexpired at thedate of clearingthe site.

35

25

15

25

Rate(Calculat

edw.r.t.90%)

2—

2.57

3.60

6.00

3.60

3=1*2

90

90

90

90

94KGL2001 -28

218 THE GAZETTE OF INDIA; EXTRAORDINARY [PART IH—SEC. 4]

(c) Hydraulic works forming*Part of hydro-electric system

including:-(i) Dams, Spilways weirs,

canals reinforced concreteFlumes & syphons

(ii) Reinforced concretepipelines and surge tanks,steel pipelines, sluice gates,steel surge (tanks) hydrauliccontrol valves and otherhydraulic works.

(d) Building & civil engineering works of aPermanent character, not mentioned above:-

(i) Offices & showrooms

(ii)Containing thermo-electric generating plant

(iii) Containing hydro-electric generating plant

(iv) Temporary erectionsuch as wooden structures

(v) Roads other thankutcha roads

(vi) Others(e) Transformers, transformer (Kiosk) sub-station

equipment & other fixed apparatus(including

plant foundations)

(i) Transformers (includingfoundations) having a ratingof 100 kilo volt amperes andover

(ii) Others

50

35

50

25

35

5

50

50

25

25

1.80

2.57

1.80

3.60

2.57

18.00

1.80

1.80

3.60

3.60

90

90

90

90

90

90

90

90

90

90

Appendix-ll - (ii)

Io3

219

(f) Switchgcar, includingcable connections

(g) Lightning arrestors:(i) Station type

(ii) Pole type

(iii) Sychronous condensor

(h) Batteries:

(i) Underground CableIncluding joint boxesand disconnected boxes

(ii) Cable duct system

(I) Overhead lines including supports:

(i) Lines on fabricatedsteel operating at nominalvoltages higher than 66 KV

(ii) Lines on steelsupports operating atnominal voltages higherthan 13.2 Kilo volts butnot exceeding 66 Kilo vols

(iii) Lines on steel orreinforced concrete supports

(iv) Lines on treated woodsupports

(j) Meters

(k) Self propelled vehicles

(1) Air conditioning plants:(i) Static

(ii) Portable(m) (i) Office furniture

and fittings

25

25

15

35

5

35

50

35

25

25

25

15

5

15

5

15

3.60

3.60

6.00

2.57

18.00

2.57

1.80

2.57

3.60

3.60

3.60

6.00

18.00

6.00

18.00

6.00

90

90

90

90

90

90

90

90

90

90

90

90

90

90

90

90


(ii) Office equipments:

(iii)Intemal wiringincluding fittings andapparatus

(iv) Street lightfittings

(o) Apparatus let on hire:

i) Other than motors

(ii) Motors

(p) Communication equipment:

(i) Radio and higherfrequency carrier system

(ii) Telephone lines andtelephones

15

15

15

5

15

15

15

6.00

6.00

6.00

18.00

6.00

6.00

6.00

90

90

90

90

90

90

90

(q) Assets purchased second hand and assets not Such reasonable period as the competentotherwise provided for in the schedule Government determines in each case

having regard to the nature, age andcondition of the assets at the time of itsacquisition by the owner.

Appendix- III

Procedure for calculation of Transmission System Availability

1. The transmission elements shall be grouped into followingcategories for the purpose of calculation of availability of RegionalTransmission Systems:

i) AC transmission lines: Each circuit of AC transmission line shall beconsidered as one element,

ii) Inter-Connecting Transformers (ICTs): Each ICT bank (three single phasetransformer together) shall form one element,

iii) Static VAR Compensator fSVC): SVC along with SVC transformer shallform one element. However, 50% credit to inductive and 50% tocapacitive rating shall be given,

iv) Switched Bus Reactor: Each switched Bus Reactor shall be considered asone element,

v) HVDC lines: Each pole of HVDC line along with associated equipment atboth ends shall be considered as one element.

221

vi) HVDC back-to-back station: Each block of HVDC b£ck-to-back stationshall be considered as one element. If associated AC line (necessary fortransfer of inter-regional power through HVDC back-to-back station) isnot available, the HVDC back-to-back station block shall also beconsidered as unavailable.

2. The Availability of Regional Transmission system shall be calculated asunder:

% System Availability

o X AV0 + p X AVP + q X AVq + r X AVr + s X AVS +1X AVt

= y -i QQ

o + p + q + r + s + tWhere

o is I otai number or A U lines.AV0 is Availability of o number of AC lines.p is Total number of HVDC poles.AVP is Availability of p number of HVDC poles.q is Total number of ICTs.AVq is Availability of q number of ICTs.r is Total number of SVCs.AVr is Availability of r number of SVCs.s is Total number of switched bus reactorsAVS is Availability of s number switched bus reactors

t is Total number of HVDC back-to-back station blocks.AVt is Availability of t number of HVDC back-to-back station

blocks

3. The weightage factor for each category of transmission elements shall be asunder:

(a)For each circuit of AC line - Surge Impedance Loading forUncompensated line (SIL) multiplied by Circuit Km.

SIL rating for various voltage level and conductor configurationis given in Annexure-I to this Appendix.For inter regional AC lines, 50% of the weightage factor shall beallocated to each Region.

(b) For each HVDC pole - The rated MW capacity x CircuitKm.

(c) For each ICT bank - The rated MVA capacity.

(d) For SVC - The rated MVAR capacity (inductive &capacitive).


(e) For switched Bus reactor - The rated MVAR capacity.(f) For HVDC back-to-back station connecting two Regional grids -

50% of the rated MW capacity of each block to each region.

4. The availability for each category of transmission elements shall becalculated based on the weightage factor, total hours under considerationand non-available hours for each element of that category. The formulaefor calculation of Availability of each category of the Transmissionelements are as per Annexure-ll to this Appendix.

5. The transmission elements under outage due to following reasons not attributableto POWERGRID shall be deemed to be available:

i) Shut down of POWERGRID transmission elements availed byother agency/agencies for maintenance or construction of theirtransmission system,

ii) Manual tripping of POWERGRID line due to over voltage andmanual tripping of switched bus reactor as per the directions ofRLDC.

6. Outage time of POWERGRID transmission elements for the followingcontingencies shall be excluded from the total time of the element under period ofconsideration.

i) Outage of elements due to acts of God and force majeure eventsbeyond the control of POWERGRID. However, onus of satisfyingthe Member Secretary, REB that element outage was due toaforesaid events and not due to design failure shall rest onPOWERGRID. A reasonable restoration time for the element shallbe allowed by Member Secretary, REB and any additional timetaken by POWERGRID for restoration of the element beyond thereasonable time shall be treated as outage time attributable toPOWERGRID. Member Secretary REB may consultPOWERGRID or any expert for estimation of restoration time.Circuits restored through ERS (Emergency Restoration System)shall be considered as available,

ii) Outage caused by grid incident/disturbance not attributable toPOWERGRID, e.g. faults in substation or bays owned by otheragency causing outage of POWERGRID elements, tripping oflines, ICTS, HVDC back-to-back stations etc. due to griddisturbance. However, if the element is not restored on receipt ofdirection from RLDC while normalising the system following gridincident/disturbance within reasonable time, the element will beconsidered not available for whole period of outage and outagetime shall be attributable to POWERGRID.

223

7. If the outage of any element causes loss of generation at Central Sector Station(s)then the outage period for that element should be deemed to be twice the actualoutage period for the day(s) on which such loss of generation has taken place.

ANNEXURE-I

SURGE IMPEDANCE LOADING (SIL) OF AC LINES

S.No.

12345678910111213

Line voltage(kv)76540040040040040040040040022022013266

ConductorConfigurationQuad BersimisQuad BersimisTwin MooseTwin AAACQuad ZebraQuad AAAC

Tripple SnowbirdACKC(500/26)

Twin ACARTwin ZebraSingle Zebra

Single PantherSingle Dog

SIL(MW)2250691515425647646605556557,1751325010

ANNEXURE-II

Formulae for calculation of Availability of each category of transmission elements

O I O

A Vo( Availability of o no. of AC lines) = I Wf(Ti -TMAO / S w<\=\ Ti I i=l

P I PAVP(Availability ofp no. of HVDC pole) = £ W./(X/ -TMAO / X W/

AVJAvailability of q no. of ICTs) - 1 WftTft - TMA&) / I W/C

K=\ Tk / *=1

224 THE GAZfcTlE OF INDIA EXTRAORDINARY |PARTIII—SEC 4|

AV^Availabihtyofrno ofSVCs) ~ = X0 5&ilJJJ_J.liid} + I. 0 5Wcl!Xd^A& /1=1 T|/ ' / - I TL7 /

r r -JI 0 5W|/ + I 0 5 Wc//=1 7=1

AV,(Availabilityofjno of Switched = T. WmiTm-T^m) / I WmBus reactors) /M=1 TW / m=l

AV,(Availabihtyof/no ofHVDC = X W«(T/I-TNA/I) / 7. WnBack-to-back Blocks) H=1 T/z / n=l

Where W/ = Weightage factor for zlh transmission lineW/ = Weightage factor f o r / HVDC poleW/t - Weightage factor for klh ICTW|/ & W t / ~ Weightage factors for inductive & capacitive operation of

/lh SVCW/» = Weightage factor for mlh bus reactorW« = Weightage factor for nxh HVDC back to back block

T/, Tj, Tk, T,7, Tt 7, - The total hours of ilh AC line, j l h HVDC pole, klh ICT, I1'1 SVCT///&T/7 (Inductive Operation), 1th SVC (Capacitive Operation), wlh

Switched Bus Reactor & //lh HVDC back-to-back block during theperiod under consideration (excluding time period for outages notdttnbutablc to POWERGRID for reasons given in Para 6 of theprocedure)

TNA' , TNA/ , TNA^ - The non-availability hours (excluding the time period for outagesTNAIA T N A C / , T N A'« , not attributable to POWERGRID taken as deemed availability asTNA« per Para 5 of the procedure) for ilh AC line, j 1 ' 1 HVDC pole, k^ ICT,

1th SVC (Inductive Operation), llh SVC (Capacitive Operation), mth

Switched Bus Reactor & n* HVDC back-to-back block .

Printed b\ iht Monagtr Go\l of India Presi, King Road, Muvapuri NLW Delhi-110064and Published by the Controller of Publication*, Delhi 110054 — 2001