{"id":20600,"date":"2007-11-29T00:00:00","date_gmt":"2007-11-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/power-grid-corporation-of-india-vs-rajasthan-rajya-vidyut-prasaran-on-29-november-2007"},"modified":"2019-03-14T17:07:44","modified_gmt":"2019-03-14T11:37:44","slug":"power-grid-corporation-of-india-vs-rajasthan-rajya-vidyut-prasaran-on-29-november-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/power-grid-corporation-of-india-vs-rajasthan-rajya-vidyut-prasaran-on-29-november-2007","title":{"rendered":"Power Grid Corporation Of India &#8230; vs Rajasthan Rajya Vidyut Prasaran &#8230; on 29 November, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Central Electricity Regulatory Commission<\/div>\n<div class=\"doc_title\">Power Grid Corporation Of India &#8230; vs Rajasthan Rajya Vidyut Prasaran &#8230; on 29 November, 2007<\/div>\n<div class=\"doc_bench\">Bench: B Bhushan, R Krishnamoorthy<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>1. The application has been made for approval of provisional transmission charges for 315 MVA ICT-IV at Moga sub-station along with associated bays (the transmission assets) under the scheme of augmentation of transformation capacity at Moga and Amritsar sub-stations (the transmission scheme) in Northern Region for the period 1.7.2007 to 31.3.2009, based on the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 (the 2004 regulations).\n<\/p>\n<p>2. The investment approval for implementation of transmission scheme was accorded by Board of Directors of the petitioner company vide Memorandum dated 1.9.2005 at an estimated cost of Rs. 4728 lakh, which included IDC of Rs.250 lakh. The apportioned approved cost of the transmission assets is stated to be Rs. 1584.51 lakh. As per the investment approval, the transmission assets were scheduled to be commissioned by March 2008. The transmission assets have been declared under commercial operation w.e.f. 1.7.2007, 8 months ahead of the schedule, after discussion with NR constituents in OCC meeting of NR.\n<\/p>\n<p>3. The details of capital expenditure submitted by the petitioner are as follows:\n<\/p>\n<p>                                              (Rs. in lakh)<br \/>\nExpenditure up to 31.3.2007                        101.70<br \/>\nExpenditure from 1.4.2007 to 30.6.2007             966.82<br \/>\nBalance estimated expenditure                      441.24<br \/>\nTotal                                             1509.76<\/p>\n<p>4. The petitioner has claimed the following transmission charges based on the capital cost of Rs. 1068.52 lakh as on the date of commercial operation:\n<\/p>\n<p>                                    (Rs. in lakh)<br \/>\nPeriod                     Transmission Charges<br \/>\n2007-08 (Pro rata)                       170.21<br \/>\n2008-09                                  226.18<\/p>\n<p>5. The expenditure up to 31.3.2007 has been verified from audited statement of accounts. For the period from 1.4.2007 to 30.6.2007 the expenditure indicated is based on books of accounts.\n<\/p>\n<p>6. The petition has been heard after notice to the respondents. No reply has been filed any of the respondents.\n<\/p>\n<p>7. The actual expenditure of Rs. 1068.52 lakh as on the date of commercial operation has been claimed by the petitioner as the base for determination of provisional transmission tariff.\n<\/p>\n<p>8. The petitioner has indicated equity deployment of Rs. 320.52 lakh as on the date of commercial operation, which is 30% of the capital cost considered and is admissible under the 2004 regulations. Therefore, the return on equity @ 14% would be Rs. 44.87 lakh for the year 2008-09 and Rs.33.65 lakh for the year 2007-08 on pro rata basis.\n<\/p>\n<p>9. The petitioner has claimed depreciation of Rs. 28.85 lakh for the year 2007-08 (pro rata) and Rs. 38.47 lakh for year 2008-09 (3.60% of the capital cost of Rs.1068.52 lakh), which is provisionally accepted. Loan repayment has notionally been taken to be equal to the depreciation allowed in tariff, and weighted average interest rate has been provisionally taken as 10.055% against the petitioner&#8217;s claim of 10.06%. Interest on loan component on the average loan amounts for the years 2007-08 and 2008-09 works out to Rs.55.32 lakh (pro rata), Rs.70.37 lakh, respectively. No Advance Against Depreciation has been considered by us while working out the provisional tariff.\n<\/p>\n<p>10. O &amp; M expenses have been claimed for two (2) bays at the rate specified in the 2004 regulations, and are in order. Interest on working capital has been calculated as per the 2004 regulations.\n<\/p>\n<p>11. Based on the above, the provisional annual transmission charges are determined as follows:\n<\/p>\n<p>                                                    (Rs. in lakh)<br \/>\n                                  2007-08 (Pro rata)    2008-09<br \/>\nReturn on equity                               33.65      44.87<br \/>\nDepreciation                                   28.85      38.47<br \/>\nAdvance against depreciation                    0.00       0.00<br \/>\nInterest on loan                               55.32      70.37<br \/>\nO &amp; M expenses                                 47.45      65.80<br \/>\nInterest on working capital                     4.94       6.66<br \/>\nTotal                                         170.22     226.17<\/p>\n<p>12. We allow transmission charges tabulated above for the transmission line, on provisional basis from the date of commercial operation subject to adjustment after determination of final tariff.\n<\/p>\n<p>13. The petitioner shall file a fresh petition for approval of final tariff in accordance with the Commission&#8217;s regulations on the subject, latest by 31.10.2008.\n<\/p>\n<p>14. While making the application for approval of final tariff, the petitioner shall file a certificate, duly signed by the Auditors, certifying the loan details, duly reconciled with audited accounts of 2007-08.\n<\/p>\n<p>15. Accordingly, the petition stands disposed of.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Central Electricity Regulatory Commission Power Grid Corporation Of India &#8230; vs Rajasthan Rajya Vidyut Prasaran &#8230; on 29 November, 2007 Bench: B Bhushan, R Krishnamoorthy ORDER 1. The application has been made for approval of provisional transmission charges for 315 MVA ICT-IV at Moga sub-station along with associated bays (the transmission assets) under the scheme [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20600","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Power Grid Corporation Of India ... vs Rajasthan Rajya Vidyut Prasaran ... on 29 November, 2007 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/power-grid-corporation-of-india-vs-rajasthan-rajya-vidyut-prasaran-on-29-november-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Power Grid Corporation Of India ... vs Rajasthan Rajya Vidyut Prasaran ... on 29 November, 2007 - Free Judgements of Supreme Court &amp; 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