ORDER
1. The Commission by its order dated 19.5.2008 had allowed tariff for (i) 40% series compensation on Meramundali-Jeypore 400 kV S/C transmission line at Jeypore (Eastern Region scheme) (Asset-I), and (ii) 50% Fixed Series Compensation on 400 kV Jeypore-Gazuwaka D/C transmission line at Jeypore (Inter-regional scheme between ER and SR ) (Asset- II) (collectively referred to as ` the transmission assets`), associated with augmentation of capacity of Gazuwaka HVDC back-to-back project for the period from 1.1.2007 to 31.3.2009, based on the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 (hereinafter referred to as “the 2004 regulations”) after accounting for additional capitalization during 2006-07. The summary of tariff awarded is given as under:
(Rs. in lakh)
Asset-I
Asset-II
2006-07
(Pro rata)
2007-08
2008-09
2006-07
(Pro rata)
2007-08
2008-09
Depreciation
14.02
57.44
57.44
22.59
92.09
92.09
Interest on Loan
22.03
87.09
81.84
34.65
136.36
128.10
Return on Equity
15.22
62.49
62.49
24.09
98.37
98.37
Advance against Depreciation
0.00
4.38
8.87
0.00
4.73
13.05
Interest on Working Capital
1.49
6.14
6.26
2.45
10.02
10.24
O & M Expenses
7.61
31.63
32.90
15.21
63.26
65.80
Total
60.37
249.16
249.80
98.99
404.84
407.66
2. Certain inadvertent mathematical errors in the computation of repayment of loan during 2008-09 and consequently the interest on loan component of tariff have been brought to the Commission’s notice. Through this order these errors are proposed to be rectified.
3. In the order dated 19.5.2008, during 2008-09, repayment of loan for Asset-I was considered as Rs. 66.31 lakh and for Asset-II as Rs. 105.14 lakh. However, actual repayments during the year work out to Rs. 64.21 lakh and Rs. 100.65 lakh for Asset-I and Asset-II respectively. The errors occurred because of the computational logic slip-up. Therefore, the interest on loan component of tariff in respect of the transmission assets is being revised as under, which will supersede the interest on loan allowed under para 24 of the order dated 19.5.2008:
INTEREST ON LOAN
(Rs. in lakh)
Asset-I
Asset-II
Details of loan
2006-07
(Pro rata)
2007-08
2008-09
2006-07
(Pro rata)
2007-08
2008-09
Opening Gross Loan
1131.00
1184.04
1184.04
1788.00
1855.54
1855.54
Cumulative Repayment
47.00
61.02
122.83
74.24
96.83
193.66
Net Loan-Opening
1084.00
1123.02
1061.21
1713.76
1758.71
1661.89
Additions due to Additional
Capitalisation
53.04
67.54
Repayment during the year
14.02
61.81
64.21
22.59
96.83
100.65
Net Loan-Closing
1123.02
1061.21
997.00
1758.71
1661.89
1561.24
Average Loan
1103.51
1092.11
1029.10
1736.24
1710.30
1611.56
Weighted Average Rate of Interest on
Loan
7.98%
7.97%
7.96%
7.98%
7.97%
7.96%
Interest
22.03
87.09
81.93
34.65
136.36
128.28
4. The revised detailed calculations in support of the weighted average rate of interest are contained in Annexure-I and Annexure-II attached.
ADVANCE AGAINST DEPECIATION
5. Consequent to revision of repayment of loan for the year 2008-09, the petitioner’s entitlement to Advance Against Deprecation has also been recalculated and the relevant details are reproduced hereunder, which will supersede the Advance Against Deprecation allowed under para 28 of the order dated 19.5.2008:
(Rs. in lakh)
Advance
against Depreciation
Asset-I
Asset-II
2006-07
(Pro rata)
2007-08
2008-09
2006-07
(Pro rata)
2007-08
2008-09
1/1 Oth of Gross Loan(s)
113.10
118.40
118.40
178.80
185.55
185.55
Repayment of the Loan
14.02
61.81
64.21
22.59
96.83
100.65
Minimum of the above
14.02
61.81
64.21
22.59
96.83
100.65
Depreciation during the year
14.02
57.44
57.44
22.59
92.09
92.09
(A) Difference
0.00
4.38
6.77
0.00
4.73
8.55
Cumulative Repayment of the Loan
61.02
122.83
187.04
96.83
193.66
294.30
Cumulative Depreciation/ Advance
against Depreciation
14.02
71.45
133.27
22.59
114.68
211.51
(B) Difference
47.00
51.38
53.77
74.24
78.97
82.79
Advance Against Depreciation: Minimum
of (A) and (B)
0.00
4.38
6.77
0.00
4.73
8.55
INTEREST ON WORKING CAPITAL
6. The revision of above noted two components of tariff, namely, interest on loan and Advance Against Depreciation, has also resulted in marginal adjustments in interest on working capital. The petitioner’s entitlement to interest on working capital, as revised, which will supersede the interest on working capital allowed in para 37 of the order dated 19.5.2008 is given hereunder.
(Rs. in lakh)
Asset-I
Asset-II
2006-07
(Pro rata)
2007-08
2008-09
2006-07
(Pro rata)
2007-08
2008-09
Maintenance Spares
15.55
15.78
16.73
24.62
24.99
26.49
0 & M expenses
2.54
2.64
2.74
5.07
5.27
5.48
Receivables
40.25
41.53
41.29
65.99
67.47
67.21
Total
58.33
59.94
60.76
95.68
97.73
99.18
Rate of Interest
10.25%
10.25%
10.25%
10.25%
10.25%
10.25%
Interest
1.49
6.14
6.23
2.45
10.02
10.17
7. The revised transmission charges being allowed in respect of transmission assets in suppression of the transmission charges approved under order dated 19.5.2008 are summarised below:
(Rs. in lakh)
Asset-I
Asset-II
2006-07
(Pro rata)
2007-08
2008-09
2006-07
(Pro rata)
2007-08
2008-09
Depreciation
14.02
57.44
57.44
22.59
92.09
92.09
Interest on Loan
22.03
87.09
81.93
34.65
136.36
128.28
Return on Equity
15.22
62.49
62.49
24.09
98.37
98.37
Advance against Depreciation
0.00
4.38
6.77
0.00
4.73
8.55
Interest on Working Capital
1.49
6.14
6.23
2.45
10.02
10.17
O & M Expenses
7.61
31.63
32.90
15.21
63.26
65.80
Total
60.37
249.16
247.75
98.99
404.84
403.26
8. In all other respects order dated 19.5.2008 shall continue to apply.