BEFORE THE CENTRAL ELECTRICI'I'Y REGULATORY COMMISSION NEW DELHI

Transcription

1 BEFORE THE CENTRAL ELECTRICI'I'Y REGULATORY COMMISSION NEW DELHI IN THE MATTER OF: Approval under regulation-86 of CERC (Conduct of Business) Regulations, 1999, CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations, 214 for determination of (i) (ii) Truing up Transmission tariff for tariff block and Transmission tariff for tariff block For assets under Vindhyachal Stage-ll Transmission System in Western Region. PETITIONER Power Grid Corporation of lndia Ltd. (Govt. of lndia undertaking) Registered office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi- l l 16 Corporate office: "Saudamini", Plot 11.2, Sector-29, Gurgaon (Haryana) Power Grid Corporation of lndia Ltd., the petitioner in the matter, is filing petition under Regulation-86 of CERC (Conduct of Business) Regulations, 1999 for approval of transmission tariff for assets under Vind hyachal Stage-l l Transmission System in Western Region. In terms of Regulation 3(2) of the Central Electricity Regulatory Commission (Procedure for making of applicatiorl for determination of t,ariff, publication of the applicatiorl and other related matters) Regulations, 24, copy of complete tariff application is hereby served to the respondents (beneficiaries of Western Region), for information and necessary action in the matter. The tariff application is hereby served through the nodal officers of the respondents for CERC matters, on the addresses as mentioned below: ADDRESSES OF NODAL OFFICERS 1. MADHYA PRADESH POWER MANAGEMENT COMPANY LTD. SHAKTI BHAWAN, RAMPUR JABALPUR REPRESENTED BY ITS MD 2. MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD. PRAKASHGAD, 4TH FLOOR ANDHERI (EAST), MUMBAI REPRESENTED BY ITS MD

2 3. GUJARAT URJA VIKAS NIGAM LTD. '.;, SARDAR PATEL VIDYUT BHAWAN, RACE COURSE ROAD VADODARA REPRESENTED BY ITS CHAIRMAN 4. ELECTRICITY DEPARTMENT GOVT. OF GOA VIDYUT BHAWAN, PANAJI, NEAR MANDVI HOTEL, GOA REPRESENTED BY ITS CHIEF ENGINEER (ELECTRICAL) 5. ELECTRICITY DEPARTMENT ADMINISTRATION OF DAMAN & DIU DAMAN REPRESENTED BY ITS SECRETARY (FIN.) 6. ELECTRICITY DEPARTMENT ADMINISTRATION OF DADRA NAGAR HAVELI U.T., SILVASSA REPRESENTED BY ITS SECRETARY (FIN.) 7. CHHATTISGARH STATE ELECTRICITY BOARD P.O.SUNDER NAGAR, DANGANIA, RAIPUR CHHATISGAARH REPRESENTED BY ITS CHAIRMAN 8. MADHYAPRADESH AUDYOGIK KENDRA VIKAS NIGAM (INDORE) LTD. 3/54, PRESS COMPLEX, AGRA-BOMBAY ROAD, INDORE Kindly acknowledge the receipt. GURGAON DATED: PETITIONER POWER GRID CORPORATION OF INDIA LTD. REPRESENTED BY W P. Saraswat Dy. General Manager (Commercial)

3 BEFORE THE CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI PETITION FOR Approval under regulation-86 of CERC (Conduct of Business) Regulations11999 and Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for deterrnination of (i) Truing up Transmission tariff for tariff block and (ii) Transmission tariff for tariff block For Combined elements: ( 4 KV D/C Vindhyachal - Satna & Satna - Bina TL (ii) 4 KV SIC Korba-Raipul- and Korba - Bhilai ckt Ill (iii) 315 MVA ICT and LILO of Bhilai- Chandrapur at Raipur under Vindhyachal Stage -11 Transmission System in Western Region PETI'TION NO. :... TRUING UP TARIFF FOR AND TARIFF FOR POWER GRID CORPORATION OF INDIA LTD. REGISTERED OFFICE 6-9, QUTAB INSTITUTIONAL AREA, KATWARIA SARAI, NEW DELHI CORPORATE CENTRE "SAUDAMINI", PLOT NO-2, SECTOR-29, GURGAON (HARYANA) EPABX: TO 719, FAX:

4 IN THE MATTER OF: BEFORE THE CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI 'S PETITION NO.: Approval under regulation-86 of CERC (Conduct of Business) Regulations'l999 and Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of (i) Truing up Ttansmission tariff for tariff block and (ii) Ttansmission tariff for tariff block For Combined elements of (i) 4 KV DIC Vindhyachal - Satna and Satna- Bina TI- (ii) 4 KV SIC Korba -Raipur and Korba - Bhilai ckt Ill & (iii) 315 MVA ICT and L11- of Bhilai- Chandrapur at Raipur (Notional DOCO:1.4.2) under Vindhyachal Stage -11 Transmission System in Western Region. IN THE MATTER OF: Power Grid Corporation of India Ltd. Registered office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi l l 16 and Corporate office: "Saudamini",Plot no.2, Sector-29, Gurgaon (Haryana) Madhya Pradesh Power Management Company Ltd. Shakti Bhawan, Rampur Jabalpur Represented By Its MD And Others INDEX --RESPONDENTS SI. No Description Letter for registration Memo of Parties Affidavit Petition CERC Order Extract from Standing Committee of Experts Aud~tor Certificate Trued up Tariff Forms (29-14 block) Tariff Forms ( block) Check List Enclosure No Encl-l Encl-2 Encl-3 Encl-4 Encl-5 ENU- POWER GRID CORPORATION Page No. 4 -S- G-7 g -'R - bb m- W 44 W-& 6s-g1, qa-g3 FILED BY GURGAON DATED: S DY. GENERAL REPRESENTED BY

5 BEFORE THE CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI 5 PETITION NO.:... IN THE MATTER OF: Approval under regulation-86 of CERC (Conduct of Business) Regulations71999 and Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of (i) Truing up Transmission tariff for tariff block and (ii) Transmission tariff for tariff block For Cornbined elernents of (i) 4 KV DIC Vindhyachal - Satna and Satna- Bina TL (ii) 4 KV SIC Korba-Raipur and Korba - Bhilai ckt Ill & (iii) 315 MVA ICT and LILO of Bhilai - Chandrapur at Raipur (Notional DOCO:1.4.2) under Vindhyachal Stage -11 Transmission System in Western Region. IN THE MATTER OF: Power Grid Corporation of India Ltd. Registered office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi l 16 and Corporate office: "Saudaminil',Plot no.2, Sector-29, Gurgaon (Haryana) Madliya Pradesh Power Management Company Ltd. Shakti Bhawan, Rampur Jabalpur Represented By Its Md And Others -- PETI'TIONER -- Respondents To The Secretary Central Electricity Regulatory Commission New Delhi Sir, The application filed under regulation-86 of CERC (Conduct of Business) Regulations11999 and Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of Truing up Transmissior~ tariff for tariff block and Transmission tariff for tariff block may please be registered. GURGAON DATED: S )I$ PETITIONER POWER GRID CORPORATION OF INDIA LTD. m--- REPRESENTEDBY MAN&SEFQ~OMMERCIAL),, * '* ', -,,---l,-

6 BEFORE THE CENTRAL ELECTRICITY RCGULATORY NEW DELHI COMMISSION PETITION NO.:... IN THE MATTER OF: Approval under regulation-86 of CERC (Conduct of Business) Regulations11999 and Regulation6 of CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of (i) Truing up Transmission tariff for tariff block and (ii) Transmission tariff for tariff block For Combined elements of (i) 4 KV DIC Vir~dhyachal- Satna & Satna -Bina TL (ii) 4 KV SIC Korba-Raipur and Korba- Bhilai ckt Ill & (iii) 315 MVA ICT and LILO of Bhilai- Chandrapur at Raipur. (Notional DOCO:1.4.2) under Vindhyachal Stage -11 Transmission System in Western Region. IN THE MATTER OF: Power Grid Corporation of India Ltd. Registered office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi l l 16 and Corporate office: "Saudamini",Plot no.2, Sector-29, Gurgaon (Haryana) -- PETITIONER Madhya Pradesh Power Management Co. Ltd Shakti Bhawan, Rampur Jabalpur, Madhya Pradesh Represented by its M. D. And others -- RESPONDENTS MEMO OF PARTIES POWER GRID CORPORATION OF INDIA LTD. --PETITIONER VERSUS I MADHYA PRADESH POWER MANAGEMENT --- RESPONDENTS COMPANY LTD. SHAKTI BHAWAN, RAMPUR JABALPUR REPRESENTED BY ITS MD 2 MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD. PRAKASHGAD, 4TH FLOOR --gu %L> \"u3, 2 r, l

7 ANDHERI (EAST), MUMBAI REPRESENTED BY ITS MD 3 GUJARAT URJA VIKAS NTGAM LTD. SARDAR PATEL VIDYUT BHAWAN, RACE COURSE ROAD VADODARA REPRESENTED BY ITS CHAIRMAN 4 ELECTRICITY DEPARTMENT GOVT. OF GOA VIDYUT BHAWAN, PANAJI, NEAR MANDVI HOTEL, GOA REPRESENTED BY ITS CHIEF ENGINEER (ELECTRICAL) 5 ELECTRICITY DEPARTMENT ADMINISTRATION OF DAMAN & DIU DAMAN REPRESENTED BY ITS SECRETARY (FIN.) 6 ELECTRICITY DEPARTMENT ADMINISTRATION OF DADRA NAGAR HAVELI U.T., SILVASSA REPRESENTED BY ITS SECRETARY (FIN.) 7 CHHATTISGARH STATE ELECTRICITY BOARD P.O.SUNDER NAGAR, DANGANIA, RAIPUR CHHATISGAARH REPRESENTED BY ITS CHAIRMAN 8 MADHYAPRADESH AUDYOGIK KENDRA VIKAS NIGAM (INDORE) LTD. 3/54, PRESS COMPLEX, AGM-BOMBAY ROAD, INDORE PETITIONER POWER GRID CORPORATION OF INDIA LTD. R PRESENTEDBY DY. GENERAL MANAGER (COMMERCIAL) GURGAON DATED: Q 1 l'

8 FfkWll HARYANA 28AA I BEFORE THE CENTRAL ELECTRICITY REGULATORY COMMISSION 1 NEW DELHI PETITION NO.:... IN TH C MATTER OF: Approyal under regulation-86 of CERC (Conduct of Business) Regulations'l999 and Regulation-6 of C~RC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of (I) Truing up Transmission tariff for tariff block and (i~) Transmission tar~ffor tariff block For Combined elements of (i) 4 KV DIC Vindhyachal-Satna & Satna-Bina TL (ii) 4 KV SIC ckt Ill & (iii) 315 MVA ICT and LILO of Bhilai-Chandrapur. (Notional under Vindhyachal Stage -11 Transmission System in Western Region. IN THO MATTER OF: Power Gr~d Corporation of India Ltd. ~e~iskred office: -9, Qutab lnstitutronal Katwaria Sarai, New Delhi l l 16 and Corpc#ate office: "Saudamini",Plot no.2, Sector-29, Gurgaon (Haryana) B -- PETITIONER --.,- Madhya Pradesh Power Management Co. Ltd. -- RESPONDENTS,/:S;~ ', c., P /<,+Y \ Shakt~ hawan, Rampur., h> Jabalpur, Madhya Pradesh S- 9-1 Repre ented by its M. D. -, I I 3 'I-- < And others &, Affidavit verifying the Petition I. Pra lad Saraswat, Slo Late Shri R M Saraswat, working as Deputy General Manager R

9 (Commercial) in the Power Grid Corporation of India Ltd., having its registered Office at B-9, Institutional Area, Katwaria Sarai, New Delhi-l l b16, do hereby solemnly affirm and state as under:- 1. I am the Dy. General Manager (Commercial) of Power Grid Corporation of India Ltd., the representative of the Petitioner in the above matter, and am duly authorized to make this affidavit submit that the enclosed petition is being filed under Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of Truing up Transrnission tariff for tariff block and Transmission tariff for tariff block for Combined elements of (i) 4 KV DIC VindhyachalSatna & Satna-Bina TI- (ii) 4 KV SIC Korba-Raipur and Korba-Bhilai ckt Ill & (iii) 315 MVA ICT and L11- of Bhilai-Chandrapur. (Notional DOCO:1.4.2) under Vindhyachal Stage -11 Transmission System in Western Region submit that no other petition except this petition has been filed directly or indirectly under Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of Truing up Transmission tariff for tariff block and Transmission tariff for tariff block for Combined elements of (i) 4 KV DIC Vindhyact-~alSatna & Satna-Bina TL (ii) 4 KV SIC Korba-Raipur and Korba-Bhilai ckt Ill & (iii) 315 MVA ICT and LILO of Bhilai- Chandrapur. (Notional DOCO:1.4.2) under Vindhyachal Stage -11 Transmission System in Western Region. 4. The statements made in the petition herein are based on petitioner company's official records maintained in the ordinary course of business and I believe them to be true and correct. 5. The documents attached with the petition are legible copies and duly attested by me. VERIFICATION (DEPONENT) Solemnly affirmed at Gurgaon on this 2oth day of October, 214 that the cor~ter~ts of the above affidavit are true to my knowledge and belief and no part of it is false and nothing material has been concealed there from. G3- (DEPONENT) ADVOCCiTE S NOTARY DISTT. GUP,G/.G.'l ;I-;d.yana)!ndia

10 IN THE MATTER OF: BEFORE THE CENTRAL ELECTRICITY REGULATORY COMlVllSSlON NEW DqLHI PETITION NO.:... Approval under regulation-86 of CERC (Conduct of Business) Regulations11999 and Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of (i) (ii) Ttuing up Transmission tariff for tariff block and Transmission tariff for tariff block For Cornbined elements of (i) 4 K' DIC Vindhyachal- Satna & Satna- Bina TL (ii) 4 KV SIC Korba-Raipur and Korba - Bhilai ckt Ill & (iii) 315 MVA ICT and LILO of Bhilai - Chandrapur at Raipur. (Notional DOCO:1.4.2) under Vindhyachal Stage -11 Transmission System in Western Region. Power Grid Corporation of lndia Ltd. Registered office: B-9, Qutab I~istitutional Area, Katwaria Sarai, New Delhi l l 16 and Corporate office: "Saudamini",Plot no.2, Sector-29, Gurgaon (Haryana) Madhya Pradesh Power Management Co. Ltd. Shakti Bhawan, Rampur Jabalpur, Madhya Pradesh Represented by its M. D. And others --- RESPONDENTS To The Hon'ble Chairman and his Companion Members of The Hon'ble CERC The Humble application filed by the Petitioner MOST RESPECTFULLY SHOWETH 1) That, the Petitioner herein, Power Grid Corporation of lndia Ltd. is a Government Company within the meaning of Companies Act, The Petitioner is also discharging the statutory functions under various applicable provisions, including in particular section 28 and 38 of the Electricity Act, 23. In exercise of powers under sub-section (1) of section 38(1) the Electricity Act 23, the Government of India has declared the Petitioner herein as the Central Transmission Utility. //>XY>, 2) That, Hon'ble Cornrnission has notified CERC (Terms and Conditions of/"t& lations, 214, in accordance with which tariff basedon capital cost fp$issiorl 8 %, m,-..?x

11 projects shall be determined. These Regulations have come in to force on and shall remain in force for a period of 5 years, unless'reviewed earlier or extended by the Hon'ble Commission. 3) That the petitioner has been entrusted with the implementation of Transmission System associated with Vindhyachal Stage -11 Transmission System in Western Region. 4) That the petitioner had filed the tariff petition for Combined elements of (i) 4 KV D/C Vindhyachal Satna & Satna Bina TL (ii) 4 KV SIC Korba-Raipur and Korba Bhilai ckt Ill & (iii) 315 MVA ICT and L11- of Bhilai Chandrapur. (Notional DOCO:1.4.2) under Vindhyachal Stage -11 Transmission System in Western Region.for determination of transmission tariff from to The final Transmission tariff based on admitted cost of Rs lakhs as on and allowed Add Cap of Rs lakhs for and Rs lakhs for for all the assets of the said transmission system covered under this petition for tariff period has been approved by the Hon'ble Commission vide its 1 in petition no 191/21, a copy whereof is enclosed as Encl.-l, I Name of Asset Combined elements of (i) 4 KV DIC Vindhyachal -Satna & Satna- Bina TL (ii) 4 KV SIC Korba-Raipur and Korba- Bhilai ckt Ill & (iii) 315 MVA ICT and LILO of Bhilai- Chandrapur. (Notional DOCO:1.4.2) under Vindhyachal Stage -I I Transmission System 1 Admitted ~ d Gal d Cost as on 3n11 5) That, Hon'ble Commission vide Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29, for the tariff block has inter-alia stated as follows: Quote: 6. Truing up of Capital Expenditure and Tariff. (l) The Commission shall carrv out truing up exercise along with the tariff petition filed for the next tariff period, with respect to the capital expenditure,in.ciki$iqg additional....j;. 5- J!.,!..\ capital expenditure incurred up to , as admitted by th~~;;~m~~ssion after. ',X ; c>,/ prudence check at the time of truing up. I!, i g -,. i, :,...L

12 Provided that the generating company or tdb transmission licensee, as the case may be, may in its discretion make an application before the Commission one more time prior to for re vision of tariff. (2) The generating company or the transmission licensee, as the case may be, shall make an application, as per Appendix I to these regulations, for carrying out truing up exercise in respect of the generating station a unit or block thereof or the transmission system or the transmission lines or sub-stations thereof by 3 l ; (3) The generating company or the transmission licensee, as the case may be, shall submit forthe purpose of truing up, details of capital expenditure and additional capital expenditureincurred for the period from to , duly audited and certified by the auditors; Un-Quote 6) In view of the above, in this petition (i) Truing up Transmission tariff for block: Truing up of Transmission tariff for the block on account of the additional capital expenditure from up to under Regulation-6 of CERC (Terms and Conditions of Tariff) Regulations, 29, for the tariff block And (ii) Transmission tariff for block: Approval under regulation-86 of CERC (Conduct of Business) Regulations' 1999 and CERC (Terms and Conditions of Tariff) Regulations' 214 for determination of Transmission tariff for the tariff block for the assets covered under this petition. has been carried out. 7) That the Petitioner is required to adjust the yearly impact of MAT as per regulation 6(5) of the 2"d amendment to the tariff Regulation period dated in the truing up petition for tariff block. Regulation 6(5) of the 2" amendment to the tariff Regulation 29-14: Quote "Provided further that Annual Fixed Charge with respect to the tax rate applicable to the generating company or the transmission licensee, as the case may be, in line with the provisions of the relevant Finance Acts of the respective year during the tariff period shall be trued up in accordance with Regulation 6 of these regulations." Unquote The truing up exercise is to be done at the time of filing tariff petition for next block, i.e period as per regulation 6(1) of Tariff Regulation m /'$L A 2 p

13 Regulation 6(1) of Tariff Requlation 29-14: Quote It "The Commission shall carry out truing up exercise along with the tariff petition filed for the next tariff period, with respect to the capital expenditure including additional capital expenditure incurred up to , as admitted by the Commission after prudence check at the time of truing up." Unquote The MAT rate applicable to the petitioner for the various years as per the Finance Act of the relevant year and the revised grossed up ROE are as given below: Year MAT Rate Grossed up ROE (Base ratel(1-t)) In line with above Regulation the tariff for each year of the tariff period block w.r.t the actual tax rate applicable to the petitioner in line with provisions of the relevant Finance Acts has been trued up. 8) While filing Tariff petition for period the petitioner had prayed for allowing the floating rate of Interest on loan adjustments. As per Hon'ble Commission order dated in petition no , it has been stated that interest on loan was calculated on basis of prevailing rates as on and any change in the rates of interest subsequent to will be considered at the time of truing up. Accordingly in the instant petition, in addition to actual Add Cap, the truing up on account of impact due to change in MAT rate, floating rate of interest, FERV as well as consequential lowc is being carried out. 9) That the present petition covers truirlg up of transmission tariff for the tariff block based on actual expenditure incurred upto and actual additional capitalization from to and transmission tariff for tariff block for Combined elements of (i) 4 K' DIC Vindhyachal Satna & Satna Bina TL (ii) 4 KV SIC Korba- Raipur and Korba Bhilai ckt Ill & (iii) 315 MVA ICT and LILO of Bhilai Chandrapur. (Notional DOCO:1.4.2) under Vind hyachal Stage -l l Transmission System in Western Region. 1) The details of underlying assumptior~s for additional capitalization during the period are summarized as follows: The admissibility of additional capital expenditure (Add Cap) incurred after Cut-Off date is to be dealt in accordance with the provision of Regulation 9(2) and Second Amerldrr~ento the principle regulation../-----,l ',?,= <*2cd /----\'.:::.,< (; (5% ~-... ;,.,.. i \,$l... ',, ;,,3.5RQ <> >\, \

14 11) The details of actual additional capitalization incurred up to of different assets covered in this petition are summarized below: i. (Rs. Lakhs) I Asset 1 Admitted I Total capital l I 1 capital cost 1 I expenditure I Combined Assets under Vindhyachal Stage-ll as per order Actual expenditure in The additional Capitalization of Rs Lakhs incurred in is on account of entry tax. An expenditure of Rs Lakhs incurred during is on account of tower strengthening. Against the projected add-cap of Rs Lakhs in block admitted by the Hon'ble Commission, an expenditure of Rs Lakhs has been incurred in block. Add Cap Expenditure of Rs Lakhs has been proposed for the next block towards tower strengthening. Tower Strengthening of 4 kv Vindhyachal - Satna Ckt I & II is in progress and tower strengthening of 4 kv Satna - Bina Ckt I & II has not been taken up in view of the following recommendation of CEA. '%S this was the first failure in the line, committee recommended to wait and watch till the smooth operation of the line gets disturbed again." Extract of the Report of Standing Committee of Experts to investigate failure of towers April 21 1 to June 21 1 dated is enclosed as Encl-2, page A copy of auditor's certificate in res ect of the assets covered in this petition are enclosed herewith as Encl-3 (page 4q to.. h ).It is humbly prayed that tariff rnay be allowed on the actual Completion cost of Rs Lakhs. The underlying reasons for additional capitalization for above assets are given in Form ) Transmission tariff for Tariff block block The Revised transrnission tariff for block has been worked out on account of Truing up of the additional capitalization and impact of change in MAT rate as per CERC (Terms and Conditions of Tariff) Regulations, 29 and impact of floating rate of interest in line with CERC Orders. In the present petition the transmission tariff has been calculated taking actual additional capitalization frorn to Calculations for working out the tariff along with supporting documentation are attached hereto as Encl.-4, ( page y t o.l?)...., I

15 The trued up annual transmission tariff for the tariff below: % 5 period is summarized as (Rs. In Lakhs) 1 1 Anrlual For Combined Fixed Cost elements (i) 4 KV a DIC Vindhyachal Satna & ~atna Bina TL (ii) 4 KV SIC l Revised l l 1 l l l ~orba-~ai~ur and Korba Bhilai ckt Ill AFC based On truing (iii)315 MVA ICT and LILO of Bhilai UP l 1 1 Chandrapur. Transmission Tariff for block: This petition also covers Approval under regulation-86 of CERC (Conduct of Business) Regulations1999 and CERC (Terms and Conditions of Tariff) Regulations 214 for determination of Trarlsmission tariff for the tariff block for the assets covered under this petition. Accordingly, the capital cost considered for determination of transmission tariff for block are as follows: (Rs In Lakhs) Capital Project Estirnated Completion cost cost as on Name of the Asset For Combined elements of assets under Vind hyachal Stage -11 Transmission System in Western Region (As per Table at SI No l,&) Total Completi Cost That the admissibility of Operation and Maintenance Additional Capital expenditure (O&M Add. Cap.) proposed during is to be dealt in accordance with the provisions of regulation 14(3)(ix) of Regulation, 214. As per the above following have been considered for O&M additional capitalization. The category wise break additional capital expenditure 13

16 Name of Asset Asset l Year '-l6 Total Nature Tower strengthening Tower strengthening Tower strengthening Amount '1~ Remarks Add cap of Rs lakhs allowed vide order dt in Petition No. 191/21 O&M additional capitalization is on account of tower strengthening which was necessitated due to change in wind zone. The detailed justification was provided in petition No 191/21. The proposed O&M works could not be completed in Hence, the balance above expenditure is projected in block. 15) That as per regulation 6(1) (i), 2 (3) and regulation 21 of the Central Electricity Regulatory Com~nissior~ (Terms and Conditions of Tariff) Regulations, 214, the tariff for transmission of electricity on ISTS shall comprise transmission charge for recovery of annual fixed cost consisting of (a) Return on Equity, (b) lnterest on Loan, (c) Depreciation, (d) lnterest on Working Capital and (e) Operation and maintenance expenses-the tariff for block has been worked out as per Appendix-l, part Ill of CERC (Terms and Conditions of Tariff) Regulations, 214. In the present petition the transmission tariff has been calculated taking actual expenditure upto and estimated expenditure from to (O&M/constructior~) for estimated additional capitalization from to Calculations for working out the tariff along with supporting documentation are attached hereto as Encld (page&. - g..j..). 16.1) The annual transmission tariff for the tariff period is summarized as below: SI No 1 1 TL. 1 Name of Asset Combined assets (i) 4 KV DIC Vindhyachal Satna & Satna Bina (ii) 4 KV SIC Korba-Raipur and Korba Bhilai ckt Ill. (iii) 315 MVA ICT and LILO of Bhilai Chandrapur , # - While calculating Annual fixed O&M charges, rates as specified in the Tariff Regulation1214 have been considered. However, the petitioner is approaching the Hon'ble Commission through review petition for revision in the O&M rates. Thus the Annual Fixed Cost is subject to the outcome of the said review petition. 16.2) The asset has completed 12 Yrs on ) That, it is submitted that the petitioner being liable to pay income tax at MAT _--- rate, the ROE has been % after grossing up the ROE with MAT,r,ajec~f 2.961% based on the rate prescribed by the Hon'ble Commission as per illustratipo~*r'~$ulation - e \-I I &( 2 14 \ ;,mc a s,. l

17 25 (2) (i) of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 214. That as per clause 25 (3)Sbf the above regulation, the grossed up rate of ROE at the end of every financial year shall be trued up based on actual tax paid together with any additional tax demand including interest thereon duly adjusted for any refund of tax including interest received from the IT authorities pertaining to the tariff period to on actual gross income of any financial year. Any under-recovery or over-recovery of grossed up rate or1 ROE after truing up shall be recovered or refunded to beneficiaries on year to year basis. It is further submitted that adjustrnent due to any additional tax demand including interest duly adjusted for any refund of tax including interest received from IT authorities shall be recoverable ladjustable during 1 after completion of income tax assessment of the financial year. 16.4) That as provided in clause 39 of Tariff Regulations 29 and clause 49 of the Tariff Regulations 214, the deferred tax liability before shall be recovered from the beneficiaries or the long term customers IDICs as and when the same gets materialized. 16.5) Service tax on trarlsmission has been put in the negative list w.e.f and accordingly the Transmission Charges indicated at para 16.1 above, is exclusive of Service Tax and the same shall be borne and additionally paid by the respondent(s) to the petitioner and the same shall be charged, billed separately by the petitioner if at any time the transmission charges is withdrawn from the negative list. Further, any additional taxes are to be paid by the petitioner on account of demand from Govt 1 Statutory authorities, the same may be allowed to be recovered from the beneficiaries. 16.6) In tariff calculation for period, lnterest on Loan has been calculated based on actual interest rates for each year. For the purpose of the supporting documents for rate of interest, kindly refer page 24 to page 4(Volurne l), page 65 to page 85 (Volume 1) and page 1 to page 1 I(Volume 2) of our affidavit dtd which was filed before the Hon'ble Commission to avoid duplicacylrepeatative submission of voluminous docurnerlts in each petition. These documentsldetails are also available on our website ) In the tariff calculation for period lnterest on Loan has been calculated on the basis of rate prevailing as on The change in lnterest rate due to floating rate of interest applicable, if any, during period for the project needs to be claimed 1 adjusted over the tariff block of 5 years directly from 1 with the beneficiaries. 16.8) The transmissiorl charges at para-16.1 above is inclusive of O&M expenses for the project derived based on the norms for O&M expenditure for Transmission System as specified under regulation 29 (3) (a) of the tariff regulations for block It is the understanding of the petitioner that these norms for O&M expenditure been arrived by the Horl'ble Commission after considering (i) normalized actual O&M expenses of the petitioner on its various projects in various regions during the year 28-9, 29-1, , and It is submitted that the wage revision of the employees of the petitioner company is due during and actual impact of wage hike which will be effective from

18 for the tarif block The scheme of wage revision applicable to CPSUs being binding on the petitioner, the petitioner r'$serves the right to approach the Hon'ble Commission for suitable revision in the norms for O&M expenditure for claiming the impact of wage hike, if any, during ) The application filing fee, expenses incurred on publication of Notices in Newspapers and License fee may be allowed to be recovered separately from the respondents in terms of Regulation 52 Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 214. The fees and charges to be paid by the petitioner as ISTS licensee (deemed ISTS licensee) under CERC (Fees and Charges of RLDC and other matters) Regulations as amended frorn tirne to time shall also be recoverable from the DlCs as provided under clause 52(2) (a). 16.1) The Transmission Charges and other related Charges indicated at para 16.1 above, is exclusive of incentive, late payment surcharge, FERV, any statutory taxes, levies, duties, cess, filing fees, license fee, RLDC fees and charges or any other kind of imposition (S) and/ or other surcharges etc. whatsoever imposed / charged by any Government (CentralIState) and 1 or any other local bodies/authorities/regulatory authorities in relation to transmission of electricity, environmental protection, and/or in respect of any of its installation associated with the Transmission System and the same shall be borne and additionally paid by the respondent(s) to the petitioner and the same shall be charged, billed separately by the petitioner on the respondents. 17 Sharing of Transmission Charges Tariff for Transmission of Electricity (Annual Fixed Cost) as per para 16- above shall be recovered on monthly basis in accordance with Regulation 43 of Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 214 and shall be shared by the beneficiaries and long term transmission customers in Central Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses) Regulations, 21 dated and amendment to these Regulations issued vide order dated or as amended from to time. However, the transmission charges for period upto shall be recovered on monthly basis in accordance with Regulation 23 and shall be shared by the respondents in accordance with regulation 33 of CERC (Terms and Conditions of Tariff) Regulations, 29. In the circumstances mentioned above it will be just and proper that the transmission tariff for the assets covered under this petition be allowed to be charged from the Respondents on the basis set out in para-14 above. The Petitioner submits that the Encl.-l to Encl.-5 may please be treated as integral part of this petition. PRAYER It is respectfully prayed that the Hon'ble Commission may be pleased to 1) Approve the Trued up Transmission Tariff for the tariff block i :.. _\

19 covered under this petition, as per para-12. above. The adjustment billing shall be raised. "t 2) Admit the capital cost as on as claimed in the Petition and approve the Additional Capitalization incurred during period and projected to be incurred during the tariff block as claimed in the petition. 3) Approve the Transmission Tariff for the tariff block block for the assets covered under this petition, as per para 16 above. 4) Allow the petitioner to recover the shortfall or refund the excess Annual Fixed Charges, on account of Return on Equity due to change in applicable Minimum AlternateICorporate Income Tax rate as per the Income Tax Act, 1961 (as amended from time to time) of the respective financial year directly without making any application before the Commission as provided urrder clause 25 of the Tariff regulations ) Allow the petitioner to recover the deferred tax liability before from the beneficiaries or the long term customers IDICs as and when the same gets materialized. 6) Allow the Petitioner to approach Hon'ble Commission for suitable revision in the norms for O&M expenditure for claiming the impact of wage hike, if any, during period ) Approve the reimbursement of expenditure by the beneficiaries towards petition filing fee, and expenditure on publishing of notices in newspapers in terms of Regulation 52 Central Electricity Regulatory Comrnission (Terms and Conditions of Tariff) Regulations, 214, and other expenditure ( if any) in relation to the filing of petition. 8) Allow the petitioner to bill and recover Licensee fee and RLDC fees and charges, separately from the respondents in terms of Regulation 52 Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, ) Allow the petitioner to bill and adjust impact on lnterest on Loan due to change in lnterest rate on account of floating rate of interest applicable during period, if any, from the respondents. 1) Allow the petitioner to recover FERV on the foreign loans deployed as provided under clause 5 of the Tariff Regulations, 214.

20 11) Allow the Petitioner to bill and recover Service tax on Transmission Charges separately from the respondents, if at any time service tax on transmission is withdrawn from negative list at any time in future. Further, any taxes and duties including cess etc. imposed by any statutorylgovtlmunicipal authorities shall be allowed to be recovered from the beneficiaries It and pass such other relief as Hon'ble Commission deems fit and appropriate under the circumstances of the case and in the interest of justice GURGAON DATED: 2.\. \ 4 FILED BY POWER GRID CORPORATION OF INDIA LTD. L5+-- REPRESENTEDBY DY. GENERAL MANAGER(CMMERCIAL)

21 CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI Coram: Petition No. 191 /21 Shri S.Jayaraman, Member Shrl V.S.Verrna, Member Shri M.Deena Dayalan, Member Date of Hearing: Date of Order: In the matter of Approval of transmission tariff for combined elements for (i) 4 kv Vindhyachal-Satna Bina transmission line; (ii) 4 kv S/C Korba-Raipur and Korba Bhilai ckt-ill; and (iii) 315 MVA ICT and LILO of Bhilai-Chandrapur of transmission system associated with Vindhyachal stage-ll in Western Region for the period from to And In the matter of Power Grid Corporation of India Limited, Gurgaon..Petitioner vs 1 Madhya Pradesh Power Trading Company Ltd., Jabalpur 2 Maharashtra State Electricity Distribution Co. Ltd., Mumbai 3 Gujarat Urja Vikas Nigam Ltd.,Vadodara 4 Electricity Deptt., Govt., of Goa, Panaji 5 Electricity Department, Administration of Daman and Diu, Daman 6 Electricity Department, Administration of Dadra Nagar Haveli, Silvassa 7 Chhattisgarh State Electricity Board, Raipur 8 Madhya Pradesh Audyogik Kendra Vikas Nigam [Indore] Ltd. lndore The following were present:... Respondents 1 Shri M.M.Mondal, PGCIL 2 Shri Rajeev Gupta, PGCIL 3 Shri R.Prasad, PGCIL 4 Shri Manoj Dubey, Advisor(1-aw) MP. Tradeco.-2.Signed order in Petition No. 191 /21 *A.> Page 1 of

22 ORDER The petition has been filed for determination of tariff for combined elements of (i) 4 kv Vindhyachal-Satna Bina transmission line (Asset-l); (ii] 4 kv S/C Korba-Raipur and Korba Bhilai ckt-ill (Asset-Ill; and [iii) 315 MVA ICT and L11- of Bhilai-Chandrapur circuit-ll and associated bays at Raipur (Asset-Ill) of Vindhyachal stage-ll transmission system in Western Region [hereinafter collectively referred to as 'the transmission assets') for the period from to , based on the Central Electricily Regulatory Commission (Terms and Conditions of Tariff) Regulations, 29 (hereinafter referred to as "the 29 regulations"). The petitioner has made the following additional prayers:- {a) To invoke the provision of Regulation 44 of the 29 regulations for relaxation of regulation 15 (3) of the 29 regulations so that the grossing up the base rate of ROE may be allowed considering the tax rates viz, MAT, surcharge, any other cess, charges, levies etc. as per the relevant Finance Act and accordingly, consequential impact of :l tariff on account cf truing up may be allowed to be billed and settled directly with the beneficiaries every year in the tariff block; (b) In case of the assets being combined to calculate the transmission charges, allow to recover full depreciation (9% of the gross block) of the asset during its useful life (25 years for sub-station and 35.*S. : W* Signed order in Petition No. 191 /21 Page 2 of 28

23 years for transmission I~nes) reckoning from its actual date of the commercial operation and also permit to treat the recovery of depreciation after achieving the useful life by an asset ( to be reckoned from the actual date of commercial operation]; (C) To approve reimbursement of petition filing fee and publication of notices in the newspaper as per the 29 regulations; (4 Allow to recover the service tax on transmission charges separately from the respondents, if the petitioner is subjected to such service tax; and (e) Allow reimbursement of licence fee separately from the respondents. 2. The annual transmission charges of the transmission assets up to were determined by the Commission vide its order dated in Petition No as amended vide order dated , based on admitted capital cost of (i) lakh for Asset-l: (ii) S lakh for Asset-ll; and (iii) lakh for Asset-Ill including additional capital expenditure for the period The notional date of commercial operation of the transmission system has been taken as on :z: signed order in Petition No. 191 /21 e.5. Page 3 of 28

24 3. The petitioner has claimed the transmission charges as under: Depreciation Interest on Loan Return on Equity Interest on Working Capital 8, M Ex~enses (3 in lakh) The details submitted by the petitioner in support of its claim for interest on working capital are given hereunder: 5. In response to the public notice issued by the petitioner on as required under Section 64 of the Electricity Act, 23 (the Act) read with 1 Regulation 3 (6) of the Central Electricity Regulatory Commission [Procedure for making of application for determination of tariff, publication of the application and other related matters] Regulations, 24, no comments or suggestions have been received from the general public in response to the public notice.."s.signed order in Petition No. 191 I21 Page 4 of 28 *L.> " a ' \ >-/-- /. S; /. Or- I! ",\, G,- c, ', *,. - 2'2 -

25 6. Reply to the petition has been filed by Maharashtra State Electricity Distribution Company Limited (MSEDCL). MSEDCL in its reply has submitted as under:- (a) Total amount of lakh/mt for galvanised steel claimed by the petitioner is on the higher side compared to the prevailing market rates of steel. The petitioner should be directed to submit the details of steel requirements and justify the rate; (ii) The petitioner should be asked to clarify the claim towards recovery of depreciation after achieving the useful life by an asset, since it is not in line with the 29 regulalions: (iii) The service tax is not applicable to transmission services, the claim of petitioner be rejected; (iv) The petitioner may be asked about the provision under which licence fee is being claimed; and (v) Reimbursement of expenditure towards filing fee should be rejected in the light of the decision in order dated in Petition No. 129/25 : Page 5 of 28.CL.> -, ,"*;'/:;..~,,,...i. X...,..,., 1.:,,! c '; { -<:.L.,:. I....<<>.~-:.. :,,.., :.:.. :..,..,.:... ;....,,,',,TE7,,,, <,. l,.:.. i '.. \..,X',.,..,,... 7 I, :>...F,.,,, ;,.,...; '.; -/g

26 7. The petitioner in its rejoinder has submitted as under: (i) The tower strengthening is to be carried out on 56 nos suspension towers of 4 kv Satna-Bina D/C line by providing additional bracings in the towers. Approximately, total weight of additional towers members is 54 MT and strengthening work includes supply of the tower members and its installation in charged transmission line. The tower strengthening is also to be carried out on 54 nos suspension towers of 4 kv -a Vindhyanchal-Satna D/C line by providing additional bracings in the towers. The approximate weight of additional tower members is 486 MT and the strengthening work includes supply of the tower members and its installation changed transmission lines. It has been submitted that the type of steel used for this strengthening work will be mild steel. However, the supply and installation cost are proposed to be undertaken through competitive bidding process and the petitioner shall approach the Commission with actual cost based on the market conditions prevailing at the time of procurement. The petitioner has further submitted that 1 total cost of strengthening work for the transmission asset has been estimated as P lakh wherein supply and F & I cost and erection cost for Vindhyachal-Satna transmission line are lakh and lakh and for Satna Bina transmission line, F & I cost and erection cost are lakh and lakh, respectively. 4 4, \ :.-z'- Signed order in Petition No <&.V - 4 Y - '\ Page 6 of28. -,,-- / \ L

27 (11) As regard the depreciation, the petitioner has clarified that the deprecation of individual assets being combined continue to be governed by the respective actual date of commercial operation of the asset. The depreciation is calculated annually as per Regulation 17 of the 29 regulations: (iii) The expenditure on filing fee and reimbursement of expenditure is being claimed as per Regulations 42 of 29 regulations; (iv) As regards the service tax, the petitioner has prayed to be allowed to recover the service tax on transmission charged directly if the exemption is withdrawn and transmission is notified as a taxable service; and [v) Licence fee is a new component of cost to the transmission licensee which has not been considered in the normative & M expenses provided in 29 regulations. 8. We have considered the objections of MSEDCL and the reply of the petitioner. The petitioner has furnished the detailed requirement of steel and its prices required for strengthening of towers. The expenditure will be the subject to prudence check of the Commission. As regard depreciation, the -e.*s- -5 Signed order in Petition No. 191 /21 Page 7 of 28

28 same is being reckoned with reference to actual date of commercial operation of the asset and is determined as per Regulation 17 of the 29 regulations. The issues of filing fee, publication expenses, service tax and licence fee have been dealt with in later part of this order. 9. During the hearing, the representative of the MPPTCL was permitted to file a reply to the petition within two weeks. No reply has been filed by the MPPTCL. CAPITAL COST 1. The last proviso to clause (2) of Regulation 7 of the 29 regulations provides as under: "Provided that in case of the existing projects, capital cost odmitted by the Commission prior to and the additional capital expenditure projected to be incurred for the respective year of the tariff period as may be admitted by the Commission, shall form the basis for determination of tariff" The capital expenditure approved by the Commission vide order dated in Petition No as amended vide order dated , which 3 has been considered for determination of tariff, are as under: Assets (7 in lakh) I Admitted capital cost I Asset-l II Total

29 ADDITIONAL CAPITAL EXPENDITURE Regulation 9 of the 29 regulations provides as under: (1) The capital expenditure incurred or projected to be incurred, on the following counts with in original scope of work, after the date of commercial operation and up to the cut-off date may be admitted by the Commission, subject to prudence check: (i) Undischarged liabilities: (ii) Works deferred for execution: (iii) Procurement of initial capital spares within the original scope of work, subject to the provisions of regulating 8 ; (iv) Liabilities to meet award of arbitration or for compliance of the order or decree of a court; and (v] Change in law; Provided that the details of works included in the original scope of work along with estimates of expenditure, undischarged liabilities and the works deferred for execution shall be submitted along with the application for determination of the tariff. (2) The capital expenditure incurred on the following counts after the cut-offdate, in its discretion, be admitted by the Commission, subject to prudence check: (i) (ii) (iii) Liabilities to meet award of arbitration or for compliance of the order or decree of a court; Change in law; **I*** (iv) ***** (v) In case of transmission system any additional expenditure on items such as relays, control and instrumentation, computer system, power line carrier communication, DC batteries, replacement of switchyard equipment due to increase of fault level, emergency restoration system, insulators cleaning infrastructure, replacement of damaged equipment not covered by insurance and any other expenditure which has become necessary for successful and efficient operation of the transmission system. --. Signed order in Petition No <'I> L5Q-. Page 9 of 28.,. - ',, :..~.\ 1".\, :.-.,,.,,,...- -,.....,., =.. :.. <..,,.,..;,,.. ' ; T.,.,.n;,>?,'-,,, :' -'. '. 'L, i W& -

30 13. The petitioner has projected additional capital expenditure in respect of Asset-l for the years and as under: Years Nature and detalls of expendlture Transmissfon line -Tower Strengthening Transmission line - Tower Slrengthenin~ Total Amount (7 In lakh) L \,. -.& 14. The petitioner vide its affidavit dated 1 1.l 1.21 has explained the necessity of tower strengthening as under: (a) Designing of the transmission line towers was being carried out as per IS 82 prevalent at fhe time of design; (b] Earlier towers were designed on the basis of the provisions on IS: which was based on the deterministic approach i.e. factor of safety was being applied on working load. However, in line with the international practice and as per the provisions of IEC , major changes were incorporated in revised ls: which is now based on the 1 probabilistic approach with different rel~abil~ty load; (c) Wind patterns in the country have changed over the years and earlier concept of three wind zones as per IS 875 (light, medium and heavy) have been changed to six wind zones as per IS 875:1987 with enhanced wind pressure as per provisions of revised IS., - x Page 1 of 28 H m "!. i..\,.._..,..,..., -,,....-.'. ' ,,:, ;*',<.,... '.,, < 'S, : ; :! :.. : \;. \,, ::. 5: :l..~ ~-, S..,..~. I 1. F.....\...,p ". ' I-...!'-.,,,:,,...'... j

31 (d) Design Practice IS 82: 1995 New Code (with % wind in broken wire condition] was being followed from 1992 to 1998 and 2 incidents of tower failures on 4 kv transmission lines have occurred in Power Grid. (e] The design of the towers of the transmission lines of Vindhyachal Stage-ll was carried out as per IS 82:1995 which is based on % wind in broken wire conditions. As per the petitioner, there were three incidents of tower failure on 4 kv Vindhachal-Satna I and II line in 23 and 25 (3 towers failed on , 1 tower failed on and 1 tower failed on ). [f) The Standing Committee of Experts constituted by CEA has recommended as under: (a) In order to minimize the failure in existing lines, hip bracings up to bottom cross arm level, in all the suspension tower of all the transmission lines, designed after 1995 should be provided, in different phases keeping in view the priority of the lines; and (b) In future, PGCII- will make provision for hip bracings on all the suspension. -*z- Signed order in Petition No. 191 /21.$L.>; Page l l of 28 a-,g ,,';.>,%,, S..;,. -;-

32 C_- -- [g] Accordingly, the petitioner has proposed tower strengthening to be carried out on 56 Nos suspension towers of 4 kv Satna-Bina D/C line and 54 Nos of tower on 4 kv Vindhyachal-Sdtna D/C line by providing additional bracing in charged transmission lines. The total cost of strengthening of lines has been estimated as lakh. 15. Vindhyachal-Satna transmission line and Satna-Bina transmission lines were designed using IS: code for % wind in broken wire conditions. 3 Therefore, there is a need for tower strengthening in this type of tower design (IS 82:1995) in view of experience of tower failure in Vindhyachal-Satna llne and keeping in view the recommendations of the Standing Committee. Accordingly, we allow the additional capital expenditure of lakh. TOTAL CAPITAL COST 16. Based on the above, gross block as given below has been considered for the purpose of tariff for the transmission asset, after allowing additional capital expenditure on works as claimed by the petitioner:.3 Amtted capltal cost as on 1.42OQY-as per order dated Projected additional capltal expenditure during Projected additional capital expenditure during (7 in lakh) Total capltal expenditure as on Signed order in Petition No Page 12 of 28 _.L.$ I q > - /- - /. : i * //.

33 DEBT- EQUITY RATIO 17. Clause (2) of Regulation 12 of the 29 regulations inter alia provides "(2) In case of the generating station and the transmission system declared under commercial operation prior to , debt-equity ratio allowed by the Commission for determination of tariff for the period ending shall be considered." 18. The petitioner has claimed tariff based on debt-equity ratio of :8.19 as considered by the Commission in its order dated in Petition No The petitioner has further claimed the amount of additional capital expenditure in the debt-equity ratio of 7:3 for the year and For the purpose of tariff, equity considered for the transmission asset is as under: Equity as on Notional equity due to additional capital expenditure for the Average eqully for Notional equity due to addltlonal capltal expendliure for the period 212- Average equity for Equlty for the period (7 in lakh) Average eqully for RETURN ON EQUITY 19. Regulation 15 of the 29 regulations provides that,- "15. (l) Return on equity shall be computed in rupee terms, on the equity base determined in accordance with regulation 12. (21 Return on equity shall be computed on pre-tax basis at the base rate of 15.5% to be grossed up as per clause (3) of this regulation: ~~.$igned order In Petition No. 191/21 s.5. Page 13 of 28,/ ---W_

34 Provided that in case of projects commissioned on or after 1st April, 29, an additional return of.5% shall be allowed if such projects are completed within the timeline specified in Appendix-\l: Provided further that the additional return of.5% shall not be admissible if the project is not completed within the timeline specified above for reasons whatsoever. (3) The rate of return on equity shall be computed by grossing up the base rate with the normal tax rate for the year 28-9 applicable to the concerned generating company or the transmission licensee, as the case may be: Provided that return on equity with respect to the actual tax rate applicable to the generating company or the transmission licensee, as the case may be, in line with the provisions of the relevant Finance Acts of the respective year during the tariff period shall be trued up separately for each year of the tariff period along with the tariff petition filed for the next tariff period. 1 (4) Rate of return on equity shall be rounded off to three decimal points and be computed as per the formula given below: Rate of pre-tax return on equity = Base rate / [l -t) Where t is the applicable tax rate in accordance with clause (3) of this regulation." 2. The Commission vide its order dated in Petition No. 17/2 1 has already taken a decision to amend the 29 regulations for allowing grossing up of the base rate of return with the applicable tax rate as per the Finance 1 Act for the relevant year and for direct settlement of tax holidays of between the generating company/transmission licensee and the beneficiariesllongterm transmission customers on year to year basis. The process of amendment to the 29 regulations is under way and same will address the grievance of the petitioner with regard to the MAT rate. Accordingly, the return on equity Signed order in Petition No. 191 I21.-L+,/' /:;, A Page 14 of 28 /,/' :',-. -

35 has been computed as per the existing provision of Regulation l5 (3) of 29 regulation as under: INTEREST ON LOAN 21. Regulation 16 of the 29 regulations provides that,- "1 6. (1) The loans arrived at in the manner indicated in regulation 12 shall be considered as gross normative loan for calculation of interest on loan. (2) The normative loan outstanding as on shall be worked out by deducting the cumulative repayment as admitted by the Commission up to from the gross normative loan. (3) The repayment for the year of the tariff period shall be deemed to be equal to the depreciation allowed for that year: (4) Notwithstanding any moratorium period availed by the generating company or the transmission licensee, as the case may be the repayment of loan shall be considered from the first year of commercial operation of the project and shall be equal to the annual depreciation allowed,. (5) The rate of interest shall be the weighted average rate of interest calculated on the basis of the actual loan portfolio at the beginning of each year applicable to the project: Provided that if there is no actual loan for a particular year but normative loan is still outstanding, the last available weighted average rate of interest shall be considered:.'s.,signed order in Petition No. 191 I21.,, G&*. c% \,> Page 15 of 28 -,.;,A52 :,.. J/F*F?JD, G < >,*;-..-,,.:\>,; :-:L:-*/-..>J..*,,. ;!.; : E%, E= \ ;-] \, :,, \ -.;.>?. t j:.j i,..'.,,., '\ :.7,7Ay-:&-s : z., \,../,;>.,! l> '.. :\, -~..-, ",..-, \ ', :...., I. * -,. --. X....:l L,: 2; 1,,, -._ -"

36 Provided further that if the generating station or the transmission system, as the case may be, does not have actual loan, then the weighted average rate of interest of the generating company or the transmission licensee as a whole shall be considered. (6) The interest on loan shall be calculated on the normative average loan of the year by applying the weighted average rate of interest. (7) The generating company or the transmission licensee, as the case may be, shall make every effort to re-finance the loan as long as it results in net savings on interest and in that event the costs associated with such re-financing shall be borne by the beneficiaries and the net savings shall be shared between the beneficiaries and the generating company or the transmission licensee, as the case may be, in the ratio of 2:l. -1 (8) The changes to the terms and conditions of the loans shall be reflected from the date of such re-financing. (9) In case of dispute, any of the parties may make an application in accordance with the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999, as amended from time to time, including statutory re-enactment thereof for settlement of the dispute: Provided that the beneficiary or the transmission customers shall not withhold any payment on account of the interest claimed by the generating company or the transmission licensee during the pendency of any dispute arising out of re-financing of loan." ) In our calculation, the interest on loan has been worked out as detailed below: (i) ADB-l loan has been utilised for debt funding apart from various domestic loans: c:fl (, 4 :z. Signed order In Petition No. 191 /21 Page l 6,of-28. /",- (. L ;:a:;>t - -., < ',! 1

37 [ii] Repayment instalments have been taken as per the ADB-I loan amortization schedule. Taking the closing balance of ADB-I loan as per the order dated in Petition No as the opening amount for 29-1, the net outstanding loan as on as per the amortization schedule for working out the half yearly repayment instalments have been considered for the purpose of calculations. Exchange rate as on has been also considered; (iii) For loans with floating rate of interest, rates of interest as on have been considered; [iv) Tariff has been worked out considering normative loan and normative repayments. Depreciation allowed has been taken as normative repayment for the period ; (v) Weighted average rate of interest on actual loan worked out as above has been applied on the notional average loan during the year to arrive at the interest on loan; -'zcsigned order in Petition No. 191 /21.r&.t.' Page 1 7 of 28,: ;.;!,! :..~ : &:P

38 JAverage (vi) Proposed domestic loan for the years and taken for the additional capital expenditure has not been taken into considered for working out the weighted average rate of interest. 23. It can be seen that the petitioner has worked out weighted average rate of interest for original assets and additional capital expenditure. For the purpose of tariff, additional capital expenditure with original transmission 1 assets have been combined. Therefore, there is difference in weighted average interest rate as claimed by the petitioner and considered by us and interest 'in normative loan. 24. The detailed calculations in support of the weighted revised average rate of interest are contained in Annexure attached to this order. Based on the above, the year-wise details of interest worked out are given hereunder: Details of loan Gross Normative Loan Cumulative Repayment up to Previous Year Capitalisation Repayment during the year Average Loan Up to l % % % (C in lakh) , on Loan Interest gJ a -. :z- *L+,' Signed order in Petition No. 191/21 Page 18 of ,,,_ :.,,,.c d. '.,,., i.::,.;/--- ~, /..;.>--,F,..,, <::-;, L-,, - i.. l ;, j, c: l<,,..\ : 1,.

39 DEPRECIATION 25. Regulation 17 of the 29 regulations provides for computation of depreciation in the following manner, namely: "17. (1) The value base for the purpose of depreciation shall be the capital cost of the asset admitted by the Commission. (2) The salvage value of the asset shall be considered as 1% and depreciation shall be allowed up to maximum of 9% of the capital cost of the asset. XXXX (3) Land other than the land held under lease and the land for reservoir in case of hydro generating station shall not be a depreciable asset and its cost shall be excluded from the capital cost while computing depreciable value of the asset. (4) Depreciation shall be calculated annually based on Straight Line Method and at rates specified in Appendix-Ill to these regulations for the assets of the generating station and transmission system: Provided that, the remaining depreciable value as on 31st March of the year closing after a period of 12 years from date of commercial operation shall be spread over the balance useful llfe of the assets. (5) In case of the existing projects, the balance depreciable value as on shall be worked out by deducting the cumulative depreciation as admitted by the Commission up to from the gross depreciable value of the assets. (6) Depreciation shall be chargeable from the first year of commercial operation. In case of commercial operation of the asset for part of the year, depreciation shall be charged on pro rata basis." 26. The asset covered in the present petition will complete 12 years as on Thus, the remaining depreciation value of the transmission asset as on has to be spread over the balance useful life (2 years) of the transmission asset as on The balance useful life of the asset has not been calculated in order dated in Petition No.73/24. As per the -Z-1signed order in Petition No. 191 /21.!L+ -23

40 -----P- 29 regulations, transmission line and sub-station have useful life of 35 years and 25 years, respectively. In our calculations, the life of building and Power Line Carrier Communication have been considered as 25 years as these are not specified in the 29 regulations. Accordingly, depreciation works out is as under: Details of Depreclatlon Gross block as per last order Addition during due to proiected Additional Capitalisation Gross block as on Average gross block Rote of Depreciation Deprecia ble Value Elapsed I-ife (Beginning of the year] Weighted Balance Useful life Depreciation 9% up to % % ( P in lakh) % 5.198% % l , OPERATION & MAINTENANCE EXPENSES 27. In accordance with clause (g) of Regulation l? the 29 regulations, the following norms for 4 kv D/C, Twin conductor transmission line and 4 kv bays are prescribed for & M expenses: 4 kv D/C, Twin conductor transmission line (C lakh.ckt km ) 4 kv S/C, Twin conductor transmission line (7 lakh.ckt km ) 4 kv bays (7 in lakhl bay) Year ~'. Signed order in Petition No. 191 j21 Page 2 of 28

41 28. The petitioner's entitlement to & M expenses has been worked out l as given hereunder: 4 kv DIC, Twin conductor transmissionline[ =564 ckt km ) 4 kv SIC, Twin conductor transmission line (199 ckt km ] 4 kv boys (17 bays] , Year (7 in lakh) I Toial ] 29. The petitioner has submitted that transmission charges claimed for the year is inclusive of 8, M expenses for project derived based on the norms for expenditure as specified under Regulation 19 (g) of the regulation. Accordingly, & M expenses for the transmission assets have been considered as per Regulation 19 (g) of the 29 regulations. The petitioner has further submitted that it would approach the Commission for suitable revision in the norms of & M expense in case the impact of wage hike w.e.f 1.l.27 is more than 5%. With reference to the submission of the petitioner, it is clarified that if any such application is made, it will be dealt with in accordance with law. INTEREST ON WORKING CAPITAL 3. The components of the working capital and the interest thereon are discussed hereunder: (i) Receivables: As per Regulation 18(l) (c)(i) of the 29 regulations, receivables will be equivalent to two months average billing calculated.-z;,signed order in Petition No. 191 /21.<&.3 r Page 21 of 28,., _-.. -.,,,., '' -3p.,.~..., "'. \

42 on target availability level. The petitioner has claimed the receivables on the basis 2 months' transmission charges claimed in the petition. In the tariff being allowed, receivables have been worked out on the basis 2 months' transmission charges. (ii) Maintenance spares: Regulation 18(1) (c)(ii) of the 29 regulations provides for maintenance 15% per annum of the & M expenses from The value of maintenance spares works out to "'l lakh as on (iii) 8 M expenses: Regulation 18(l )(c)(iii) of the 29 regulations provides for operation and maintenance expenses for one month as a component of working capital. The petitioner has claimed O&M expenses for 1 month of O&M expenses of the respective year as claimed in the petition. This has been considered in the working capital. (iv) Rate of interest on working capital: As per Regulation 18(3) of the 29 regulations, rate of interest on working capital shall be on normative basis and shall be equal to the short-term Prime Lending Rate of State Bank of India as on or on 1 st April of the year in which the project or part thereof (as the case may be) is declared under commercial operation, whichever is later. The petitioner has claimed interest on working 12.25% based on SBI PLR as on , which is in accordance with the 29 regulations and has been allowed...g. Signed order in Petition No. 191 /21 S&

43 31. The necessary computations in support of lnterest on Working Capital are appended hereinbelow: (fin lakh) I Maintenance Spares - &- M ex~enses Receivables otal ate of Interest l nterest TRANSMISSION CHARGES The transmission charges being allowed for the transmission asset are summarised below: Depreciation Interest on Loan Return on Equity Interest on Working Capital & M Expenses 1, % , % , % (?in lakh) , % , % I I I I I Total l l Application fee and the publication expenses 33. The petitioner has sought approval for the reimbursement of fee paid by it for filing the petition. MSEDCL has submitted that the filing fee should be allowed as per Hon'ble Commission's order dated in Petition No. 129/25. It is clarified that the said decision was applicable to the tariff,period However,. Regulation 42 of the 29 regulation provides for reimbursement of filing fees and expenses on publication of notices as may

44 be allowed at the discretion of the Commission. We have decided the following in our order dated 1 1.l.21 in Petition No. 19/29: "85. The Commission after careful consideration has decided that filing fee will be reimbursed in the following cases: (a) Main petitions for determination of tariff; (b) Petitions for revisions of tariff due to additional capital expenditure.; (c) Petitions for truing up of expenditure. Filing fees paid for filing the Review Petitions, interlocutory Applications and other Miscellaneous Applications will not be reimbursed in tariff. The Commission has decided to reimburse the expenses on publication of notices as such expenses are incurred to meet the statutory requirement of transparency in the process of determination of tariff." 34. In accordance with the said decision, the petitioner shall be entitled to recover the filing fee from the beneficiaries on pro rata basis. The petitioner shall also be entitled for reimbursement of publication expenses from the beneficiaries on pro-rata basis. Service Tax 35. The petitioner has prayed for reimbursement of service tax, if it is subjected to such tax in future. MSEDCL has objected the prayer of the petitioner. It is clarified that as the petitioner has no liability for service tax at present, the prayer is infructuous and is accordingly rejected. Licence fee 36. The petitioner has prayed for reimbursement of licence fee as it is an extra cost on the petitioner. MSEDCL has objected the prayer of the petitioner. --m.-az*. Sianed order in Petition No. 191 /21 Paae 24 of,28:,-'

45 In this connection, it is clarified that, a view in the matter is yet to be taken by the Commission. 37. The transmission charges allowed shall be recovered on monthly basis in accordance with Regulation 23 and shall be shared by the respondents in accordance with Regulation 33 of the 29 regulations. 38. This order disposes of Petition No.19 1 I21. Sd/- (M.Deena Dayalan) Member sd/- (V.S.Verma) Member sd/- (S.Jayaraman) Member --sr~igned order in Petition No. 191/21 S.' > Page 25 ~f-.2&.. I -..., ,.,,! '.! ', '~, ~-,:,.,...',.;., 'I......,....

46 1 Annexure CALCULATION OF WEIGHTED AVERAGE RATE OF INTEREST ON LOAN (C In lakh) Details of Loan Bond VI H Gross loan opening 179. ' Cumulative Repayment up to the l I I date of commercial I 1 1 I I 1 Cumulative Repayment up to the I I date of commercial operation I I I I I I 4 Bond-XIII-Optlon-ll Gross loan opening Cumulative Repayment up to DOCO/previous year Net Loan-Opening Additions during the year Repayment during the year m : I?:, 6, [:ILL :z. Signed order in Petition No. 191 /21.*A.% Page 26-&28

47 date of commercial operation :z.signed order in Petition No. 191/21 Page 27 of 28..*&.W \. -. i _ ' \, \ 1

48

49 Government df lndia Central Electricity Authority System Engineering & Technology Development Division 3rd Floor, NW, Sewa Bhawan, R.K.Puram, New Delhi Telefax: fl~m,~,~9,-Z No. CEA/SETD/45-F/212/ 5 71 Date : ' S,,, \ ri Rajesh Kumar, GM (Engg.), Powergrid Corporation of lndia Ltd. 'SAUDAMINI' Plot No. 2, Sector-29, GUI-gaon (HARYANA) (FM: ), Subject : Report of Standing Committee of Experts to investigate failure of towers during the period April 21 1 to June Sir, Enclosed please find herewith the final report of Standing Committee of Experts to investigate the causes failure / damage of towers for the following Transmission Lines of POWERGRID and Powerlink Transrnission Ltd. during the period April 211 to June 211 for further necessary a~tion please kv SIC Kanpur-Panki-l Transmission Line 2. 4 kv DIC Maithan-Maithan Transmission Line kv DIC Arah-Khagaul Transmission Line kv SIC Allahabad-Phoolpur Transrnission Line 5. 4 kv DIC Satna-Bina (Ckt ) Transmission Line kv SIC Sipat-Seoni (Ckt-ll) Transmission Line (P.K. Mishra) Director (Trans). & Member Secretary, Standing Committee of Experts

50 iivj 22 kv SIC Aiiahabad-Phooipur Tlt The 22 KV SIC Allahabad-Phoolpur Transmissior~ Line was designed by M/s KPTL, Gandhinagar and constructed by Mls L&T, Chennai. The towers of the line were designed for mediurn wind zone as per IS The suspension towers were designed with "1-1-1" insc~lator string in vertical configuration for ACSR ZEBRA conductor. The line was commissioned in June 24. The tower at location no. 43 (A+O) failed from top cross arm level. The tower below bottom cross arm level was intact. All the foundations were found intact. Recommendations : 'S (i) As this was the first failure i1-i the line, committee recommended to wait and watch till the smooth operation of the line gets disturbed again. jv) 4 kv DIC Satna-Bina ( Ckt-I & 11) TIL The 4 KV D/C Satna-Bina Transmission Line (ckt-l& II) was designed and constricted by M/s KEC International Ltd. The line was commissioned on The towers of the line are designed with "V" strings for wind zone-iv (47 mls) as per IS: The line has been designed for NIL wind in security condition. - The tower at location no. 565 (DA+6) failed from stubs level and all the stubs got damaged.' Coping also got damaged,.. The tower at location no. 566 (DA+6), ~ ight side. Top and Middle cross -arms got damaged due to collapsing of toweraf loc. No Recommendations : As this was the first failure in the line, committee recommended to wait and watch till the smooth operation of the line gets disturbed again. Iv) 765 kv SIC Sipat-Seoni ( Ckt 11) TIL The,765 KV SIC Sipat - Seoni - II Transmission Line (ckt 11) is 353 Km long and is.-a part of Sipat Stage-l Transmission System'. The line has delta configuration and the SJC towers are' designed for wind zone-2 (39 mls) with reliability level 2 (15 years return period). The line was -.

51 pp m - v - v.' \ It. ' 4 I' -- _ :'s SAGAR & ASSOCUATtS PI-etn Nagar. Hyderabad CHARTEREDACCOUNTANTS Sar-ilda Dev~ Siicct t'tiorre: SS8 Fax: L-rriail i-sagarandassoc~ates(i~yi~lioo.~~,tn E-r~rail : saga~.andassociates.ra~~>gni;~il corr; C.tnatl. vvsagclrbabu~~gmcl~i.com Sel-vtce TAX Regn. No. AAjFS7295N STOOI CERTIFICATE OF CAPITAL COST This is to certify that the Capital cost of Combnied assets of Vindhyachal Stage-l1 Transmission system,which Is under commercial operation from 1.4.2, is as below: PARTICULARS P Admitted Cost as on aspercerc order dated Expenditure from TO Expenditure from TO Expenditure from TO Expenditure from TO Expenditure from TO Projected Expenditure from TO ( RS.1 LAKHS) Proiected I TOTAL 1.~cl(Free hold) I O.OO( l Land(Lease hold) Building, Civil Works 8 Colony Transmission Line sub Station lplcc Tota We certify that expenditure up to has been verified from the audited statement of accounts of Power Grid Corporation of India Ltd., Western Region-11, Vadodara. Projected Expenditure is based on the details furnlshed by the management. Place : Hyderabad Date : L1, a::. $~.+ ), -:. ~-1:.-:- ~\7<Si...! B No 38. (Old No 14). Second Man Road, CIT. Colony, Mylapore Chennsi - 6b el : T,9 1;4? :.,., B.O.: Flat No. 3C, jeevan Reside~icy. Beh~nd Kalanjali, Renigunca Road. TinrpT~~4, t>?+33.l-. B. H.No Metrar Nagar.. Old Gajuwalta. Visakhapatnarn - 53%2-6~?" - AQ,

52

53 86'EZTS 86'EZTS 86'EZtS PT-ETOZ ssei U! 'su EPm6TTS 86'EZTS TT'6 L8'tTtS ET-ZTOZ L8'PTTS L8'PTTS L8'PTTS 21-TTOZ Z9'OTTS L8'tTTS S.8 LE'9T.S TT-OTOZ Aynb3 a2e~an~ At!nbg let1 de3 ppv uo Aynb3 leuo!to~ Aynb3 2u!uado. uelnwt~ed OOO~-J~~-TO :uo!te~ado lep~auuro3 4 atea ura1sas uo!ss!usuejlll-a2ets ley3eaypu!~ 4 stasse pau!quro3 :juaual3 uo!ss!usuejl ay1 4 auren uatsas UO!SS!USUeJlII- ase~~ 1wH3vAHalA :J3a[oJd ay1 4 awen Wl WJOd * LE'9TS LEm9TS LE'9OTS 1-6Z N133lJ NlJ31S3M :uo!2alj ay1 4 awen pat!u!g e!pu( 4 uo!te~od~o3 ramod :aasuay uo!ss!usuejl ay1 4 awen Aqnb3 uo ujntan 4 uo!peln3le3

54 Details of Transmission Lines And Substations PART - I11 Form 2 Name of the Transmission Licensee: POWERGRID CORPORATION OF INDIA LTD. Name of Region: WESTERN REGION Name of the Project: VIDHYACHAL Stage -11 Transmission System Name of the Transmission Element: Combined assets of Vindhyachal Stage-I1 Transmission system (NOTIONAL DOCO: (1-APR-2) 1 Transmission Lines SI.No. Name of Line Type of Line SIC or D/C No. of Sub- Voltage level Line Length Date of Covered in the present ACMVDC Conductors kv (Km.) Commercial petition operation YeslNo If No, petition No. 1 VINDHYCHAL SATNA CKT-I and I1 AC DIC AUG Yes 2 SATNA-BINA CKT-I and I1 AC DIC AUG Yes 3 KORBA RAIPUR CKT-11 AC SIC JAN-2 Yes 4 LILO OF KORBA BHILAI 111 (Constructed AC D/C JAN-2 Yes under Korba Stage-11) at Raipur 5 LILO OF CKT-I1 OF D/C BHILAI AC D/C APR-2 Yes CANDRAPUR LINE (Constructed under Korba Stage-11) at Raipur -+- Substations

55 Name of the Transmission Licensee: Name of Region: Name of the Project: Name of the Transmission Element: 9 Raipur S/S Conventional 17 Korba I Korba I1 Bhilai I Bhilai I1 ICT I(315 MVA) ICT I1 (315 MVA) Bus Reactor Bhadrawati I Korba S/S Raipur I1 Conventional Total Details of Transmission Lines And Substations POWERGRID CORPORATION OF INDIA LTD. WESTERN REGION VIDHYACHAL Stage -11 Transmission System Combined assets of Vindhyachal Stage-I1 Transmission system (NOTIONAL DOCO: (1-APR-2) 4/22K V ' KV JAN-2 1 -JAN-2 1 -JAN-2 1-APR-2 1 -JAN-2 1 -APR-2 1-JAN-2 1 -APR-2 Yes Yes Yes Yes Yes Yes Yes Yes 1 1-JAN-2 I Yes PART Form 2 Petitioner _.- ;. -. 2:.. i.... '.,

56 pp----- (Jauo!l!aad) E6'1OPZ9 8E'OE 11.6 LZ.TZ a~!gew~o~ ZE'8Z S '1: a~!leu~o~ I ~ ~ D V l e n ~ v se de2ppv ~I!M PTOZ'EO'TE U 1so2 lel!de3 lelol lelol h!nb3 lqaa ETOZ-ZLOZ ~4 de3 PPV lelol Al!nb3 ~qaa '1:5Z-O'1:Z A4 de3 PPV 8E'OE ZE'8Z I elol hnb3 lqaa ETOZ-ZTOZ A4 de3 PPV TTOZ-OTOZ A4 de3 PPV EZ'EPEZ9 HNI is3 lelol o!letl Avb3 lqaa 8E.91~ HNI A~!nbj lelol leuo!lon 2!lsawoa u8!a~oj h!nb3 S~'~EZLS HNI sue1 lelol uef!a~od-sue1 ~!gsauoa-sueo1 sue1 lunoucv pue h~ua~~r-13 aunowv pue A D U ~ J J ~ ~ aunourv pue A~ua~~n3 6Z'EO'TE a3 pano~ddw / a3 Aq paayurpv sv uo se a2ey3ed le!~ueu!j se a2ey~ed ~e!~ueu!j s~eln~!a~ed sue1 U1 'SU OOOZ-J~W-TO :uo!ae~ado(ep~aurwo~ )o ales ss!ucsuejl 11-aIle)s leqxi?aypu!~ 4 slasse pau!qurod :auawalg uo!ge~!unucuro~ JO luaural] uo!ss!wsuejl ay1 )o awen wa)sas uo!ss!ursue~l~~- a2eas l v ~ 3 v ~ :pa!o~d ~ a l ay1 ~ )o auen g-ur JO j N193U NU31SIM :uo!sau ay1 4 awen paa!ur!1 e!pul)o uo!ge~od~o~ p!~g JaMod :aasua~!y uo!ss!ursuejl aya )o auen (~~1-61 -JeaA ~ ~olfl) a3 oldn asey~ed le!dueu!j I

57 Statement of Additional Capitalisation after COD Name of the Petitioner: Power Grid Corporation of India Limited Name of the Region: WESTERN REGION Name of the Project: VIDHYACHAL Stage -11 Transmission System Name of the Transmission Element: Combined assets of Vindhyachal Stage-ll Transmission system Date of Commercial Operation: 1-Apr-2 Form-9 Work / Equipment SI. No. Year proposed to be added after COD uto cut off datelbeyond cut off Amount capitalised and proposed to be capitalised Justification Regulation under which covered Admitted Cost date TR LINE Total Entry Tax Liability 9) TR LINE 3.38 Tower Strengthning Payment 9(2) Total &L (~etitione$

58

59 "c 5 Calculation of Depreciation Rate I~ame of the Transmission Licensee: Power Grid Cor~oration of India Limited Name of the Region: WESTERN REGION Name of the Project: VIDHYACHAL Stage -11 Transmission System Name of the Transmission Element: Combined assets of Vindhyachal Stage-ll Transmission system Date of Commercial Operation: 1-Apr-2 SI. No. Particulars I Gross I block at the beginning of the year Add Cap during the year Average Gross Block FREEHOLD LAND BUILDING TR LINE su B STATION PLCC LEASEHOLD LAND Total Weighted Average Rate of Depreciation Lapsed life Gross 1 l the end at of Dep. Rate Form 11 I Rs. in ~acsl l l Amount the year 1 I 1 I FREEHOLD LAND TR LINE SUB STATION PLCC LEASEHOLD LAND I Total Weighted Average Rate of Depreciation Lapsed life - - FREEHOLD LAND BUILDING TR LINE SUB STATION PLCC LEASEHOLD LAND s Total Weighted Average Rate of Depreciation Lamed life

60 -- Statement of Depreciation IName of the Transmission Licensee: Power Grid Corporation of India Limited ~ a m of e the Region: WESTERN REGION Name of the Project: VIDHYACHAL Stage -11 Transmission Svstem Name of the Transmission Element : Combined assets of Vindhyachal Stage-ll Transmission system Date of Commercial Operation: 1-Apr-2 '5 Form ~~~ Rs. in Lacs Particulars Opening Capital Cost IncreateIDecrease due to ACE during the vear i~losin~ Ca~ital Cost ) l~verawe Ca~ital Cost l Freehold Land (AV. Cost) Rate of Depreciation Depreciable Value Balance useful life of the asset (at the beginning of year) Elapsed life of the asset (at the beginning of the year) l ~e~reciation durina the vear I~eureciation u~to previous vear ) l~umulative depreciation (incl. of AAD) Remaining Depreciable Value I I I W" (Petitioner)

61 ' ' 1' 66'192 '292, -. " 1.-, QL' "" 3" 66'192 66'192 '29Z '292. TO'O 66'T9Z '192 ' 1' 66'192 '292 ~eaa ayaou!~np (s)l~e.ca:ppt/ Ou!uado sue1 a a ~ ~ esno!r\ald a ~ oadn sue1 4 sluauaeday ar\!lelnurn3 ueo1 Bu!uado sso~9 1' p - '.. Bu!uado sue1 aan '992 '992 '992 '992 '992 lea^ sno!r\ald oadn sue1 4 sluauraeda~ ar\!yelnurn3 ('6~~ '6LO1 '6~1 '6LO1 l PT-ET2 ET-ZTOZ OT'TL6 '6LO1 IT-112 OZ'E98 OE'SSL '6LOT '6LO1 TT lea^ sno!r\a~d oadn sue1 4 sauauaeday a~!aelnwn3 ueo1 Buyado sso~g -3oa-IA anoa s~eln3!yed

62 8T.9 LP'LL9L L6'TSZS 66'6LP 7%~, 69'SPZZT 96'ZLOOT SP'SPEP 8Z.S OZ'68E9T TP'STPPT SS'TP6E ZE'S T9'LPTOZ 66'6SE8T EZ'SLSE OZ'9 E9'9SSEZ ZZ'SE6TZ T8'ZPZE ueol uo jsa~ajul jo ajey ueo1 j a a8ela~w ~ ueo1 8u!sol3 jan ~eaa aqj Bu!lnp ueol jo (s)~uauraedau:ssa'l 9E'LSLPE ZE'98PP T6'TPPOE ZES98PP EE'OOS9Z ZE'98PP OT'SZ6ZZ ZE'98PP 61'2896T ZE'98PP ~ esno!~a~d a ~ ojdn sue1 4 s~uauraedad a~!~elnwn3 ueol %u!uado sso~g TE-PP-3-I - aaw ' ' '. Z8'ST 67 T OO'EET. EE'LP 98'TT '66E '991 Sg'P9 ZL'6 '599 'zes PE'E8 S6'8 '1E6 '86L ueo1 uo jsalajul ueol uo jsalajuljo ajey ueo1 J ~ a8e~a~w N Ue1 Bu!so~~ jan ' '99Z '991 OO'P6EZ 'ZEs '8ZTZ '86L OO'Z98T OO'P9T '96ST Supado sue1 jan ~ esno!~ard a ~ ojdn sue1 4 s~uaurhedad a~!ye(nwn3 OO'ET SZ'EE ' )~'99. OS'99 OS'E9ZT OO'OEET OO'ET OO'EET 5'99 'EET ' 5'661: OS'OETT OO'OEET SS-ZT '991 Sm66T OO'EET. OS'ZEE OS'L66 OO'OEET LS'OT '66E OS'ZEE OO'EET. SaS9P OS'P98 OO'OEET 9'T 'ZES S'sgP 'EET. OS'86S OS'TEL OO'OEET ueo1 uo jsalajul 4 aaey ueo1 JaN a8e~a~w Ue1 %u!so~~ jan leaa aqj Bu!lnp ueol 4 (s)juawaedad :ssa-l JeaA aqj Bupp (s)(m~j~ :ppw %u!uado sue1 JaN ~ esno!~a~d a ~ oadn sue1 4 sjuaurheday a~~elnwn3 ueo1 Ou!uado ssolg '1' T. 1' T. TO'O T. TO'O T. TO'O T. ueo1 J ~ a%e~a~w N UeO1 BU!SOI~ JaN PT-ETOZ s3e1 U!.su ET-ZTOZ ZT-TTOZ IT-OTOZ T-62 s~eln3!j~ed ooo~-rd~-~~ :uo!je~ado le!~~aruwo3 jo a)ea urajshs uo!ss!ursuejl ll-abejs ley3eaqpu!~jo sjasse pauiqruo3 :juauralj uo!ss!ursuerl ayjjo awen

63

64

65

66

67

68 Details of Transmission Lines and Substations, Communication System Name of the Petitioner: Power Grid Corporation of India Limited Name of the Region: WESTERN REGION Name of the Project: VIDHYACHAL Stage -11 Transmission System Name of the Transmission element or Communication system: Combined assets of Vindhyachal Stage-ll Transmission system Date of Commercial Operation: 1-Apr-2 Form-2 Transmission Lines: S1.N. Name of Line Type of Line Line Notional Covered in the 1 ~VINDHYCHAL SATNA CKT-I and II 2 SATNA-BINA CKT-I and II 3 4KV Korba-Bhata~ara-Bhilai 4 14~~ Bhatapara-Bhilai (loop out from Raipur) 5 14~~ Rai~ur-Bhilai I and Part of Rai~ur-Bhadrawati I Line AC/HVDC I AC AC AC I AC I AC Length length Date of present petition CKt. KM h, COmmercia1 operation petition Substations: Substation Type of Substation Voltage level KV No. of Transf ormer l,, Notional, Date of l~overed, in the petition I 1 2 BINA-Satna I(Pirana PG-I) BINA-Satna II(Pirana PG-II) Apr- 1-Apr- Y Y s RAIPIJR-ICT I (315 MVA ) 9 RAIPUR-ICT 11 (315 MVA 1 11 I RAIPUR-BUS Apt-- Y Reactor 14 I l 11-Apr- IY 1 1-~pr- Y

69 Details of Transmission Lines and Substations, Communication System Name of the Petitioner: Power Grid Corporation of India Limited Name of the Region: WESTERN REGION Name of the Project: VIDHYACHAL Stage -11 Transmission System Name of the Transmission element or Communication system: Combined assets of Vindhyachal Stage-ll Transmission system Date of Commercial Operation: 1-Apr-2 Form-2 17 SATNA-Bus Reactor (5 MVAR) Total Apr- Y Communication Svstem: Y l G f Communication System Technical Particulars Number / length Date of Covered in the- No. Communication Commercial System operation petition I f petitioner) l

70 41 e1 'su uo!lels-qns AIS9L 41 e1 'su uo!lels-qns AIOOP 41 e1 'W uo!lelsqns SI 9 AI OOP 41 e1 'W uo!lels-qns AI2 2 pue uo!lels-qns AIZET Aeq lad wgo aa!lewaon ZEP'O SSL'O IEL'O 41 e1 'W (~ol3npuo3 aa~yl pue u!m~) l!n3~!3 al8u!s PEE'O SSL'O IEL'O 41 e1 'W s~ol3npuo3 ajou JO Jnoj ~J!M l!n3j!3!llnl/y 41 e1 'W (~ol3npuo3 aajyl pue OML) l!n3~!3 alqnoa

71

72 d) Amount of IEDC (excluding IDC,FC,FERV and.hedging cost) included in B(a) above C. a) Closing Gross Block Amount as per Books b) Amount of capital liabilities in C(a) above c) Amount of IDC,FC,FERV and Hedging cost included in C(a) above d) Amount of IEDC (excluding IDC,FC,FERV and Hedging cost) included in C(a) above L>r\ (Petitioner)

73 Z'i"S8 99'sz 98'6s a ~! ~ e w ~ o lenm ~ l e1ol A~!nbg ~qaa ST.OZ-P1:Oz Jo4 de3 PPQ 1: ZS"i'8 9T.OZ-STOZ Jo4 de3 PPQ STOZ-PTOZ A4 de3 PPQ I lunowv pue A3uaun3 BTOZ'EO'TE / a3 Aq pau!lupq SQ s'4ye-i Ul 'S8 I lunowv pue A3uaun3 a3 uo se a8eyaed lepueu!j I lunouv pue A3ualln3 pa~oldd~ se a8ey2ed le!~ueu!j s~elny~~ed

74 Name of the Petitioner: Power Grid Corporation of India Limited Name of the Region: WESTERN REGION Statement of Additional Capitalisation after COD Name of the Project: VIDHYACHAL Stage -11 Transmission System Name of the Transmission Element or Communication System: Combined assets of Vindhyachal Stage-ll Transmission system Date of Commercial Operation: 1-Apr-2 Form-7 SI. No. Year Work l Equipment proposed to be added after COD uto cut off datelbeyond cut off date Amount capitalised and proposed to be capitalised Justification Regulation under which covered Admitted Cost TR LINE Total Add Cap Tower Strengthning 14(3)(ix) TR LINE Total 1 1 Add Cap Tower Strengthning 14(3)(ix) (~etitiohr)

75 Total Loan Equity Total J%, (Petitioner)

76

77 TO'O 66'TgOZ l Z ~OZ ', lj, ->.,.-"-" TO'O TO'O 66'TgOZ 66'TgOZ I ~ 9 ~ TO'O 66'TgOZ TO'O 66'TgOZ TO'O 66'TgOZ I Z ~OZ IZ9Z I Z9Z I Z9Z ueol bu!uado ssolgl l I I I I I leah ay1 Bu!~np ueol 4 (s)~uatuaeda~ :sal leah a q Bu!lnp ~ (s)l~e~a :ppw Bu!uado sue1 J ~ N lea^ sno!~ald o~dn sue1 4 s~uawhedatj 'tun3 2'6 2'6 6STZ 6STZ 16~1~ I ~ S T 2'6 6STZ 2'6 6STZ 2'6 6STZ 2'6 6STZ z I ~ S T Z I ~ S T Z I ~STZ 16~1~ ueol Bu!uado ssolgl I I I I I I ueol uo ~sa~a~ul ueol uo ~sa~a~ul)o a~eu ueol J~N abelanw ueolbu!sol3 J ~ N leah aqj Bu!~np ueol 4 (s)~uatuaedau:sal ~eaa a q Bu!lnp ~ (s)l~e~a :ppw Bu!uado sue1 J ~ N ~ esno!~a~d a ~ o~dn sue1 4 s~uawhedau 'wn3 ueol uo ~sa~a~ul t9'et.--- W'ET -- - ueol uo ~sa~a~ul~o a~eu ueol J~N ase~anw ueol8u!so(3 JaN leaa aq~ Bu!~np ueol 4 (s)~uawaedau:sal 99Z 199~ ueol Bu!uado ssolg ET'ET ET'ET ET'ET ueol uo ~sa~a~ul ET'ET ET'ET ueol uo ~sa~a~ul4 a~eu ueol JaN abe~anw ueolbu!sol3 J ~ N 6LOT 6T-8TOZ ssei U! 'sl 6LOT 8T-LTOZ 6LOT LT-9TOZ 6LOT 91-STOZ 6LOT ST-tTOZ 6LOT PT-ETOZ Pas!nau ueol Bu!uado ssolg -3a-IA anoa sleln3~led ooo~-~dt/-~o :uo!pe~ado lepjatuwo3 4 ales wa~sas

78 -, \ / / - L\ \,YJ \, - /,I dyk S8'L TO'O T. 6'1-8TOZ S8'L TO'O To. 81-LTOZ S8'L TO'O To. LT-9TOZ S8'L '1' 'Co'o 9'1-STOZ S8'L TO'O TO'O ST-MO2 S8'L TO'O 1' PT-ETOZ Pas!natl ueol uo asa~aaul ueol uo asa~aauljo aae~ ueol a a abe~any ~ UeOl Bu!so~~ JaN s~eln3!ued uaasas uo!ss!usuejl ~ l-abe~ leq3eaqpu!~ 4 saasse pau!quo3 :wa$sas uo!$e3!unwuo3 JO $uaual3 uo!ss!ursuejl aqajo auen utaashs uo!ss!ursuell~~- abeas ~ VH~VAH~IA :pa!o~d aqa 4 auen N193tl Ntl31S3M :uo!zatl 4 awen

79

80 Net Closing Loan Average Net Loan Rate of Interest on Loan Interest on Loan (Petitioner)

81 Calculation of lnterest on Normative Loan Name of the Transmission Licensee: Power Grid Corporation of India Limited Name of the Region: WESTERN REGION Name of the Project: VIDHYACHAL Stage -11 Transmission System Name of the Transmission Element or Communication System: Combined assets of Vindhyachal Stage-ll Transmission system Form 9E Date of Commercial Operation: 1-Apr-2 Rs. in Lacs Particulars Gross Normative Loan Opening Cumulative Repayments of Normative Loans upto Previous Year Net Normative Loans Opening Increate/Decrease due to ACE during the year Less: Repayment(s) of Normative Loan during the year Revised Net Closing Normative Loan Average Net Normative Loan Rate of Interest on Loan Interest on Normative Loan Pro rata Interest on Normative Loan (petitioneb

82 Depreciable Value Balance useful life of the asset (at the beginning of year) Elapsed life of the asset (at the beginning of the year) Remaining Depreciable Value Depreciation during the year Depreciation upto previous year Cumulative depreciation (incl. of AAD) (Petitioner) \

83 Pro rata Interest on working capital Tetitioner)

84 Name of the Company Name of the Project : INDEX CHECK LIST PART-111 Power Grid Corporation of India Ltd. Vindhyachal Stage -11 Transmission System in Western Region Name of the Transmission Element: Combined elements of (i) 4 KV DIC Vindhyachal Satna & Satna Bina TL (ii)4 KV SIC Korba-Raipur and Korba Bhilai ckt 111 & (iii) 315 MVA ICT and LILO of Bhilai Chandrapur. (Notional DOCO:1.4.2) Other Information1 Documents SI. No. lnformationldocument Certificate of incorporation, Certificate for Commencment of Business, Memorandum o 1 Association, & Articles of Association ( For New Station setup by a company making tarif application for the first time to CERC) Regionwise and Corporate audited Balance Sheet and Profit & Loss Accounts with all thc Schedules & annexures for the new Transmission System & for the relevant years. Copies of relevant loan Agreements Copies of the approval of Competent Authority for the Capital Cost and Financial package. Copies of the Equity participation agreements and necessary approval for the foreign equity. Copies of the BPTAITSA with the beneficiaries. if any Detailed note giving reasons of time and cost over run, if applicable. List ofsupporting documents to be submitted: a. Detailed Project report b. CPM analysis c. PERT Chart and Bar Chart d.justification for cost and time Overrun Transmission Licensee shall submit copy of Cost Audit Report along with cost accounting records, cost details, statements, schedules etc. for the transmission system as submitted to the Govt. of India for first two years i.e and at the time of mid-term trueup in and for balance period of tariff period at the time of final true-up in In case of initial tariff filing the latest available Cost Audit Report should be Any other relevant information (Please specify) Not Applicable - Tick :onsolidated Balance sheet of 'POWERGRID & Legional Balance Sheet of WR for FY hall be submitted shortly -Not Applicable - -Not Applicable - :quity contribution by GO1 (57.9%) anc thers(42.1%) -Not Applicable - -Not Applicable - -Not Applicable -.<--I

85 Name of the Company Name of the Project : I INDEX CHECK LIST PART-111 Power Grid Corporation of India Ltd. Vindhynchal Stage -11 Transmission System in Western Region 1 I (combined elements of iil4oo KV D/C Vindhvachal Satna & IName of the Transmission Element; ~, Bina TL (ii) 4 KV SIC Korba-Raipur and Korba Bhilai & (iii) 315 MVA ICTand LILO of Rhilai Chandrayur. Form No. FORM- 1 FORM-1A FORM-2 FORM-3 FORM- 4 FORM-4A FORM-5 FORM-5A FORM-5B Checklist of Forms and other information1 documents for tariff filing for Transmission System Tariff Filing Formats (Transmission) Tick Summary Sheet Calculation of Return on Equity Details of Transmission Lines and Substations Normative Parameters considered for tariff calculations Details of Foreiqn loans Details of Foreign Equity Abstract of Admitted Cost for the existing Projeds Abstract of Project Cost Estimates and Schedule of Commissioning for the new Projects Element wise Break-up of Project Cost for Transmission System l Yes Yes Yes 1 Not applicable and hence not enclosed Not applicable and hence not enclosed Not applicable and hence not enclosed Not applicable- Not applicable and hence not enclosed FORM-5D Details of elementwise cost Not applicable and hence not enclosed Yes FORM- 7 Details of Project Specific Loans FORM- 8 Details of Allocation of corporate loans to various transmission elements Not applicable and hence not enclosed _FORM8 Statement of Additional Capitalisation after COD Yes FORM-9A Statement of capital cost Not applicable and hence not enclosed FORM- 1 Financing of Additional Capitalisation Yes FORM- 11 Calculation of Depreciation Rate Yes FORM- 12 Statement of Depreciation Yes - ORM- 13A Calculation of Interest on Normative Loans FORM Loans in Foreiqn Currency Yes.FORM-138 Calculation of Interest on Workinq Capital Yes Not applicable and hence not enclosed Other Information/ Documents l New Station setup by a company making tariff application for the first time to CERC) Regionwise and Corporate audied Balance Sheet and Profit & ~oss~~onsolidated Balancesheet of 'POWERGRID & Accounts with all the Schedules & annexures for the new Regional Balance Sheet of WR for FY Transmission System & for the relevant years. I be submitted shortly 3 4 Copies of relevant loan Agreements -Not Applicable - Copies of the approval of Competent Authority for the Capital Cost -Not Applicable - and Financial Dackaae. 5 Copies of the Equity participation agreements and necessary approval Equity contribution by GO1 (57.9%) and for the foreiqn eauitv. others(42.1 /~) 6 Copies of the BPTAITSA with the beneficiaries, if any -Not Applicable - 7 I Detailed note giving reasons of time and cost over run, if applicable. -Not Applicable - I 8 l~ny other relevant information, (Please specify) I -Not Applicable - I l