KERALA STATE ELECTRICITY BOARD LIMITED (Registered Office: Vydyuthi Bhavanam, Pattom, Thiruvananthapuram, 695 004) CIN : U40100KL2011SGC027424 Web Site : www.kseb.in BUDGET ESTIMATES 2018– 2019 AND SUPPLEMENTARY FINANCIAL STATEMENT FOR 2017-18 CONTENTS Sl.No Particulars Pages 1 Introduction 1-15 2 Abstract of Budget Estimates 16-17 3 Scheme wise investment programme for the year 2017-18 & 2018-19 18-21 4 Estimate of Revenue 22-23 5 Availability of Energy and Sales 24-26 6 Performance of Generating Stations 27-29 7 Cost of Generation of Power 30 8 Cost of Power Purchase 31 9 Loans, Receipts, Repayments and Interst Charges 32-34 10 Repairs and Maintenance 35 11 Employee Cost 36 12 Administration and General Expenses 37 13 Interest and Finance Cost 38 14 Cost of Generation of Power (Revised Estimate) for 2017-18 39 15 Cost of Generation of Power (Budget Estimate) for 2018-19 40 16 Repairs and Maintenance - (Budget Estimate) for 2017-18 41-48 17 Repairs and Maintenance - (Revised Estimate) for 2017-18 49-56 18 Repairs and Maintenance - (Budget Estimate) for 2018-19 57-64 19 Employee Cost - Capital Account (Budget Estimate) for 2017-18 65-66 20 Employee Cost - Capital Account (Revised Estimate) for 2017-18 67-68 21 Employee Cost - Capital Account (Budget Estimate) for 2018-19 69-70 22 Employee Cost - Revenue Account (Budget Estimate) for 2017-18 71-76 23 Employee Cost - Revenue Account (Revised Estimate) for 2017-18 77-82 24 Employee Cost - Revenue Account (Budget Estimate) for 2018-19 83-88 25 Administration & General Expenses (Budget Estimate) for 2017-18 89-96 26 Administration and General Expenses (Revised Estimate) for 2017-18 97-104 27 Administration & General Expenses (Budget Estimate) for 2018-19 105-112 28 Abstract of Employee cost,Administration & General Expenses 113-117 Scheme wise distribution of Plan Expenditure 29 118-121 ( Budget Estimate)for 2017-18 Sl.No Particulars Pages Scheme wise distribution of Plan Expenditure 30 122-125 (Revised Estimate) for 2017-18 Scheme wise distribution of Plan Expenditure 31 126-129 ( Budget Estimate) for 2018-19 32 Capital Outlay - Generation Schemes (a) On Going Schemes 130-134 (b) New Schemes 135-144 ( c) Completed Schemes 145-151 (d) Thermal 152-153 (e) Renovation and Modernisation of Hydro Stations 154-155 33 Construction of Administrative Complexes and Other Buildings 156-158 34 Mechanical Fabrication Works 159 35(a) Research and Development (C ) 160 (b) Research & Development ( C) -DRIP 161 36 Institutional Development Programme (E) 162 37 Survey,Investigation&Enviornment Studies,Solar / Wind Power Project 163 38 Distribution - Schemewise Abstract 164 Capital Works - Distribution Schemes - Division-wise breakup of funds provided 39 165-167 (Revised Estimate) for 2017-18 Capital Works - Distribution Schemes - Division-wise breakup of funds provided 40 168-170 (Budget Estimate) for 2018-19 41 Other works 171 42 Abstract of Capital Expenditure - Transmission Schemes 172 43 System Operations(Renovation and Modernisation) 173 44 Power System Development Fund Works 174 45 Transgrid - 2.0(KIIFB) 175-176 46 Transgrid Down stream works 177-180 47 Circlewise Split up of Capital Expenditure 181-184 48 Capital Budget Transmission Scheme- Circle wise (a) Transmission South 185-251 (b) Transmission North 252-319 ********* INTRODUCTION Kerala State Electricity Board (KSEB), was a statutory body constituted on 01-04-1957 under Section 5 of the Electricity Supply (Act), 1948 for the co- ordinated development of Generation, Transmission and Distribution of electricity in the State of Kerala. As per the provisions of the Electricity Act- 2003, KSEB continued as a State Transmission Utility (STU) and Distribution Licensee till 24-09-2008, performing the same functions of Generation, Transmission and Distribution of electricity within the State of Kerala. In exercise of powers conferred under sub-sections (1),(2),(5),(6) and (7) of section 131 and Section 133 of the Electricity Act 2003, State Government vide notification G.O(MS) 37/2008/PD dated 25.09.2008 has vested all functions, properties, interests, rights, obligations and liabilities of KSEB with the State Government till it is re-vested in a corporate entity. Accordingly and also in line with Section 131(2) of Electricity Act, 2003 the Kerala State Government vide notification G.O(P)No.46/2013/PD dated 31 st October 2013 has notified the Kerala Electricity Second Transfer Scheme (Re- vesting) 2013 where in the assets, liabilities, rights and obligations of KSEB which was already vested in to the State Government by first transfer scheme dated 25 th September 2008 were re-vested to new successor entity ie. Kerala State Electricity Board Limited (KSEBL).As per the Government notification, KSEBL shall be responsible for all its functions in the same manner as erstwhile Board were liable. Subsequently the State Government vide notification G.O.(P) No.3/2015/PD dated 28-01-2015 has amended certain clauses in the notification dated 31-10-2013. 1 The key features of the notified Kerala Electricity Second Transfer Scheme (Re-vesting) 2013 and Kerala Electricity Second Transfer (Amendment) Scheme (Revesting) 2015 include:- 1) Managing the activities of Transmission, Generation and Distribution through three strategic business units SBU-T (Transmission Unit), SBU-G (Generation Unit) and SBU-D (Distribution Unit). 2) In the notification dated 28-01-2015 the opening balance sheet for KSEBL as on 01-11-2013 substituted instead of the opening balance sheet as on 01-04-2012 as per the Government notification dated 31-10-2013.As per the notification, the Gross Fixed Assets (GFA) is ` 24961.05Crore. The equity capital of Government is fixed `3499Crore. The unfunded terminal liabilities as on 31-10-2013 amounting to `12149Crore and its funding plan is included in the notification. A cleaned up balance sheet has been prepared for the new corporate entity with good financials and leverages. 3) All the employees shall remain on the rolls of the Kerala State Electricity Board Limited who shall be responsible for their pay, benefits and other service conditions. 4) A Master Trust will be established and all the future pension liabilities will be met by this trust. As per actuarial valuation carried out, the net present value of unfunded terminal liability is approximately `12419Crore as on 31 st October 2013. KSEBL will issue two series of bonds to the Master Trust. Another `524.00 Crore will be funded by State Government through budgetary provision over next 10 years in equal instalments as per G.O.(MS)No.43/2011/PD dated 3 rd November 2011. In addition to interest on bonds and repayment of principal, KSEBL 2 will be paying the annual pension contribution based on actuarial valuation to the Master Trust in respect of the Personnel transferred to Kerala State Electricity Board Limited. The unfunded liability up to the date of transfer will be borne and shared between the State Government and the Kerala State Electricity Board Limited. 5) The State Government will fund `5861.00 Crore over a period of next ten years from the date of transfer to the KSEBL on annual basis for meeting the unfunded terminal liabilities by way of retention of electricity duty and necessary arrangements will be made by the Transferee and the State Government to ensure the sufficiency of funds for uninterrupted payment of Terminal benefits. Power industry, being the most important infrastructure in the State, KSEBL has been taking steps to improve the power system by adding capacity in Generation, Transmission and Distribution. The primary mission of KSEBL is to provide quality power at affordable cost on demand to the consumers of the State and to act as a catalyst for total development. The Electricity Act- 2003 and other policies notified by the Central and State Governments are the governing laws and KSEBL has to function on commercial principles. KSEBL is also undertaking activities for improving its efficiency in various fields such as technical, financial, human resource development and consumer satisfaction. KSEBL has been performing better than other bundled distribution licensees in the country. KSEBL has achieved 100% metering many years back. KSEBL is one of the very few distribution licensees that has achieved 100% electrification of all the households in the state. Further comparing to other States there was no power cut and load shedding except during worst monsoon periods. Kerala is one of the very few States in India which have achieved T&D loss reduction target below 15 %. Further overall collection 3 efficiency of KSEBL is consistently more than 98% despite Kerala Water Authority has not been remitting electricity charges promptly. KSEBL has not made any default to the payment to the suppliers. Till now, KSEBL is the Generator and power procurer of all consumers of the State including the small and bulk consumers. KSEBL has been directly providing power supply to more than 99% of the total consumers of the state. As on date, KSEBL has been providing power supply to more than 123 lakh consumers spread over the urban and rural areas of the State. KSEBL has been performing the planning and development of the power system over the years by utilizing the resources of the Company and the Government. KSEBL has been implementing all the policy directions of the State Government such as providing free electricity to consumers below poverty line, giving priorities for service connections to weaker sections in the society, subsidy to agricultural consumers, orphanages and similar other eligible consumers as decided by the Government from time to time, tariff concessions to industrial sectors etc. The Company has been implementing various schemes formulated by Central Government such as Restructured Accelerated Power Development and Reforms Programme (R-APDRP), Deendayal Upadhaya Gram Jyothi Yojana (DDUGJY) Integrated Power Development Schemes (IPDS) etc in the State towards accomplishing the national goals such as cent percent household electrification, electrification of all dwellings, settlements etc.