Central Electricity Regulatory Commission New Delhi
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CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI Petition No. 68/TT/2016 Coram: Shri A.S. Bakshi, Member Dr.M.K.Iyer, Member Date of Hearing : 11.07.2016 Date of Order : 29.07.2016 In the matter of: Determination of transmission tariff for Assets (4 nos) under Transmission System for "Transfer of power from Generation Projets in Sikkim to NR/WR Part- B" in Eastern Regionfor the 2014-19 tariff period under Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 and Regulation 86 of Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999. And in the matter of: Power Grid Corporation of India Limited. „SAUDAMINI‟, Plot No-2, Sector-29, Gurgaon -122 001 (Haryana). ………Petitioner Versus 1. Gati Infrastructure ChuzachenLimited. 1-7-293,MG Road,268, UdyogVihar, Phase-IV, Secunderabad, Andhra Pradesh - 500003 2. Gati Infrastructure Bhasmay Power Limited. 1-7-293,MG Road, 268, UdyogVihar, Phase-IV, Secunderabad, Andhra Pradesh - 500003 3. PTC INDIA Limited. 2nd Floor, NBCC Tower 15, BhikajiCama Palace, New Delhi Order in Petition No. 68/TT/2016 Page 1 4. LANCO ENERGY Pvt.Limited, Plot No. 397, 2nd Floor, Udyog Vihar , Phase III, Gurgaon, Haryana- 122016 5. DANS Energy Private Limited, 5th Floor, DLF Building No. 8, Tower C, DLF Cyber City Phase- II Gurgaon, Haryana- 122002 6. JAL Power Corporation Limited, 405-406, Raja House, 30-31, Nehru Place, New Delhi- 110019 7. Madhya Bharat Power Corporation Limited. NH-31-A, Golitar, Singtam, Gangtok -737134, Sikkim 8. Bihar State Power (Holding) Company Limited (formerly Bihar State Electricity Board -BSEB) Vidyut Bhavan, Bailey Road, Patna – 800001 9. West Bengal State Electricity Distribution Company BidyutBhawan, Bidhan Nagar Block DJ, Sector-II, Salt Lake City Calcutta - 700091 10. Grid Corporation of Orissa Limited. ShahidNagar, Bhubaneswar - 751007 11. Damodar Valley Corporation DVC Tower, Maniktala Civic centre, VIP Road, Calcutta - 700054 12. Power department Government of Sikkim, Gangtok - 737 101 13. Jharkhand State Electricity Board In Front of Main Secretariat Doranda, Ranchi - 834002 ….Respondents Order in Petition No. 68/TT/2016 Page 2 The following were present:- For Petitioner: Shri S. S. Raju, PGCIL Shri M. M. Mondal, PGCIL Shri Amit Yadav, PGCIL Shri Jasbir Singh, PGCIL For Respondent: Shri Sakya Singha Chaudhari, Advocate, LANCO Teesta Hydro Power Private Limited Ms. Molshree Bhatnagar, Advocate, LANCO Teesta Hydro Power Private Limited ORDER The present petition has been filed by Power Grid Corporation of India Ltd. (“the petitioner”) for determination of tariff for Termination of Gangtok- Rangpo/Chujachen and Melli- Rangpo/Chujachen Line at Rangpo and associated bays at Rangpo Sub-station, LILO of 400 kV D/C Teesta V- Siliguri Line (Ckt-I) at Rangpo and associated bays alongwith 1 No, 400 kV Bus Coupler bay at Rangpo Sub-station, 01 no. 3X105 MVA Single Phase 400/220 kV Transformer (1st) and associated bays alongwith 1 No. 1X105 MVA Single Phase, 400/220 kV Spare Transformer at Rangpo Sub-station, and One no. 100 MVA 220/132 kV Transformer (1st) and associated bays alongwith 01 number 132 kV Bus Coupler Bay and 01 number 132 kV Bus Sectionaliser bay at Rangpo Sub-station (hereinafter referred to as “Asset 1”); LILO of 132 kV S/C Gangtok-Rangit Line at Rangpo and associated bays at Rangpo Sub-station (hereinafter referred to as “Asset 2”); 01no. 3X105 MVA Single Phase 400/220 kV Transformer (2nd) and associated bays at Rangpo Sub-station (hereinafter referred to as “Asset 3”) ; 01 Order in Petition No. 68/TT/2016 Page 3 no. 80 MVAR Bus Reactor (1st) & associated bays at Rangpo Sub-station (hereinafter referred to as “Asset 4”) under Transmission System for "Transfer of power from Generation Projets in Sikkim to NR/WR Part-B" in Eastern Region under Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 for the period from date of commercial operation to 31.3.2019. 2. The respondents are distribution licensees or electricity departments or power procurement companies of States, who are procuring transmission service from the petitioner, mainly beneficiaries of Eastern and North-Eastern Region. 3. The brief facts of the case are as follows:- (a) The investment approval for the project was accorded by Board of Directors of the petitioner company, vide Memorandum No. C/CP/Sikkim Generation projects-Part-B dated 17.3.2011 with an estimated cost of `158512.00 lakh including an IDC of `10183.00 lakh, based on price level of 3rd Quarter, 2010.The total approved apportioned cost for the instant assets is `19892.91 lakh. As per the investment approval, the transmission asset was scheduled to be commissioned within 32 months from the date of investment approval, i.e.17.3.2011. (b) The scope of work covered under Transmission System for "Transfer of power from Generation Projets in Sikkim to NR/WR Part-B" in Eastern Regionis as follows:- Order in Petition No. 68/TT/2016 Page 4 Transmission line: (i) LILO of Teesta III- Kishanganj 400 kV D/C line (quad) at Rangpo (ii) Rangpo- New Melli 220 kV D/C line (iii) LILO of Gangtok- Rangit 132 kV S/C line at Rangpo and Termination of Gangtok- Rangpo/ Chuzachen and Melli- Rangpo/ Chuzachen 132 kV line at Rangpo (iv) LILO of Teesta V- Siliguri 400 kV D/C line at Rangpo. (v) Kishanganj- Patna 400 kV D/C Squad line Sub-stations (i) Establishment of 400/220/132 kV Gas Insulated at Rangpo with 16X105 MVA 400/220 kV 1-Phase transformers and 3X100 MVA 220/132 kV 1- Phase transformers. (ii) Establishment of 220 kV GIS switching station at New (iii) Extension of bays at Kishanganj 400/220 kV Sub-station (iv) Extension of bays at Patna 400/220 kV Sub-station (c) The transmission charges claimed by the petitioner are as under:- (` in lakh) Asset 1 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 (Pro-rata) Depreciation 608.44 703.71 713.60 713.60 713.60 Interest on Loan 558.87 621.34 591.29 553.67 509.01 Return on Equity 847.60 972.27 983.69 983.69 983.69 Interest on Working 63.62 71.90 72.33 72.12 71.77 Capital O&M Expenses 311.99 344.34 355.77 367.55 379.79 Total 2390.52 2713.56 2716.68 2690.63 2657.86 (` in lakh) Asset 2 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 (Pro-rata) Depreciation 13.50 53.68 66.62 66.62 66.62 Interest on Loan 8.22 31.60 37.33 34.64 31.66 Return on Equity 15.04 60.10 74.59 74.59 74.59 Interest on Working 1.98 6.85 7.73 7.79 7.85 Capital O&M Expenses 20.48 63.47 65.57 67.75 70.02 Order in Petition No. 68/TT/2016 Page 5 Asset 2 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 (Pro-rata) Total 59.22 215.70 251.84 251.39 250.74 (` in lakh) Asset 3 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 (Pro-rata) Depreciation 93.49 116.16 119.61 119.61 119.61 Interest on Loan 69.24 82.23 78.81 72.61 65.11 Return on Equity 104.17 130.06 133.92 133.92 133.92 Interest on Working 10.60 12.91 13.18 13.22 13.24 Capital O&M Expenses 80.65 96.86 100.08 103.39 106.83 Total 358.15 438.22 445.60 442.75 438.71 (` in lakh) Asset 4 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 (Pro-rata) Depreciation 44.62 53.18 53.52 53.52 53.52 Interest on Loan 31.96 36.23 34.27 31.75 28.43 Return on Equity 49.72 59.55 59.93 59.93 59.93 Interest on Working 5.36 6.37 6.44 6.48 6.51 Capital O&M Expenses 44.34 53.25 55.02 56.84 58.73 Total 176.00 208.58 209.18 208.52 207.12 (d) The details submitted by the petitioner in support of its claim for interest on working capital are given hereunder:- (` in lakh) Asset 1 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 (pro-rata) O & M Expenses 27.77 28.70 29.65 30.63 31.65 Maintenance Spares 49.99 51.65 53.37 55.13 56.97 Receivables 425.61 452.26 452.78 448.44 442.98 Total Working Capital 503.37 532.61 535.80 534.20 531.60 Rate of Interest (%) 13.50 13.50 13.50 13.50 13.50 Interest on working 67.96 71.90 72.33 72.33 71.77 capital Pro rata Interest on 63.62 71.90 72.33 72.33 71.77 Order in Petition No. 68/TT/2016 Page 6 Asset 1 Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 (pro-rata) working capital (` in lakh) Asset 2 2014-15 Particulars 2015-16 2016-17 2017-18 2018-19 (pro-rata) O & M Expenses 5.12 5.29 5.46 5.65 5.84 Maintenance Spares 9.22 9.52 9.84 10.16 10.50 Receivables 29.61 35.95 41.97 41.90 41.79 Total Working Capital 43.95 50.76 57.27 57.71 58.13 Rate of Interest (%) 13.50 13.50 13.50 13.50 13.50 Interest on working 5.93 6.85 7.73 7.79 7.85 capital Pro rata Interest on 1.98 6.85 7.73 7.79 7.85 working capital (` in lakh) Asset 3 2014-15 Particulars 2015-16 2016-17 2017-18 2018-19 (pro-rata) O & M Expenses 7.81 8.07 8.34 8.62 8.90 Maintenance Spares 14.06 14.53 15.01 15.51 16.02 Receivables 69.39 73.04 74.27 73.79 73.12 Total Working Capital 91.26 95.64 97.62 97.92 98.04 Rate of Interest (%) 13.50 13.50 13.50 13.50 13.50 Interest on working 12.32 12.91 13.18 13.22 13.24 capital Pro rata Interest on 10.60 12.91 13.18 13.22 13.24 working capital (` in lakh) Asset 4 2014-15 Particulars 2015-16 2016-17 2017-18 2018-19 (pro-rata) O & M Expenses 4.30 4.44 4.59 4.74 4.89 Maintenance Spares 7.73 7.99 8.25 8.53 8.81 Receivables 34.10 34.76 34.86 34.75 34.52 Total Working Capital 46.13 47.19 47.70 48.02 48.22 Rate of Interest (%) 13.50 13.50 13.50 13.50 13.50 Interest on working 6.23 6.37 6.44 6.48 6.51 capital Pro rata Interest on 5.36 6.37 6.44 6.48 6.51 working capital Order in Petition No.