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IN THE MATTER OF of 2009
Proposal of M.P. Power Generating Company Ltd. for approval of Generation Tariff of Sanjay Gandhi (1x500MW) Thermal power Station for FY 09 M.P. Power Generating Company Ltd, Rampur, Jabalpur. 1. M.P. Power Trading Company Ltd., Rampur, Jabalpur 2. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 3. MP Madhya Kshetra Vidyut Vitaran Company Ltd., Bhopal 4. MP Paschim Kshetra Vidyut Vitaran Company Ltd., Indore 5. M.P. Power Transmission Co. Ltd. Jabalpur. 6. M.P. State Electricity Board, Rampur, Jabalpur.
The above named petitioner, M.P. Power Generating Company Ltd, respectfully submits as under:1. Madhya Pradesh Power Generating Company Limited (MPPGCL), hereinafter referred as the Petitioner is a company incorporated under the Companies Act, 1956 and having its registered office at Shakti Bhawan, Jabalpur. Consequent to the implementation of power sector reforms in the State where under, amongst others, the activities of generation, transmission, distribution and retail supply of electricity carried out by erstwhile MPSEB have been restructured and transferred to the five successor corporate entities, wherein the function of power generation has been vested with MPPGCL. The functions of retail distribution of power has been vested with the three distribution companies v.i.z. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur (hereinafter referred as Respondent 2) MP Madhya Kshetra Vidyut Vitaran Company Ltd., Bhopal (hereinafter referred as Respondent 3)
and MP Paschim Kshetra Vidyut Vitaran Company Ltd., Indore (hereinafter referred as Respondent 4). The responsibility of power transmission has been vested with M.P. Power Transmission Co. Ltd., Jabalpur (hereinafter referred as Respondent 5 ) 2. The M.P. State Electricity Board (MPSEB), (hereinafter referred as Respondent 6), was constituted under, Section- 5 of the Electricity (Supply) Act, 1948, is a body corporate. It was vested with the general duties under Section-18 of the said Act. After implementation of the Power Sector Reforms in the State, its scope of operation was limited to act as trader of power in the State and manage cash flow on provisional basis. Subsequently, GoMP vide its notification dated 3rd Jun 06 has incorporated MP Power Trading Company Limited (MP Tradeco) (hereinafter referred as Respondent 1) and transferred the responsibilities of power trading to it. Now MPSEB is primarily managing Cash Flow amongst six successor companies in accordance with the “Cash Flow Mechanism” notified by GoMP vide notification dated 3rd Jun 06. Since all power generated by MPPGCL from the capacity allocated to it, is to be purchased by MP Tradeco and MPSEB shall be making payments on behalf of MP Tradeco to MPPGCL, both of them are affected parties and hence made respondent to the petition. The power generated by MPPGCL and sold to MP Tradeco shall be transmitted through the transmission network of MP Transco and shall be ultimately sold to the above mentioned three discoms. Hence all the four companies are also affected parties and hence made respondent to the petition. 3. As regard to the power generated from SGTPS Birsinghpur 500 MW, the recently commissioned plant, GoMP vide its notification dated 3rd Jun 06 has categorically provided that petitioner will sell entire power generated by the Sanjay Gandhi Thermal Power Station to the Respondent 1 at a rate determined by Hon.ble MPERC. A Power Purchase Agreement to this effect has also been signed between MPPGCL and MP Tradeco on 29th Nov 2006 and has already been submitted to the Hon.ble Commission on 30th Nov 2006. 4. Earlier as the 1x500 MW unit of SGTPS, Birsinghpur was synchronized on 18.6.07, a tariff petition for determination of tariff for Extn. Unit No.5 was submitted to Hon.ble MPERC vide Petition No.51 of 2007 on 19.9.2007, envisaging its commercial operation w.e.f. Nov.2007. Hon.ble Commission vide order dated 18.1.2008 has disapproved the MPPGCL.S request for approval of provisional Tariff saying that the unit has not started generating
the electricity commercially and allowed MPPGCL the recovery of infirm power charges till the CoD of Unit. Further, Hon.ble Commission has issued the directive to file the petition for determination of provisional tariff for 1x500 MW Extn. Units, as soon as CoD is achieved. The CoD of SGTPS units No.5 has been achieved on 28th Aug.2008. In view to prepare the petition project cost details including the details of revenue against sale of infirm power were to be ascertained. The requisite data related to sale of infirm power could only be gathered after Hon.ble Commission clarified the issues raised by SLDC in the month of October 2008. The data related to expenditure towards generation of infirm power was gathered during Nov.-Dec.2008, which included O&M, Administrative & Gen. Expenses and cost of the fuel. In the meantime Joint Secretary, GoI, MoP vide letter dated 18.11.2008, forwarded through Addl. Secretary, GoMP, Department of Energy (dated 28.11.2008), regarding import of coal during 2009-10, forwarded CEA.s target sheet indicating the utility wise target for import of coal during 2009-10 due to lack of Indian coal availability. In view of the above MPPGCL vide letter No. 19 dated 12.1.2009 has requested Hon.ble MPERC to kindly accord in-principle approval for procurement of imported coal and admissibility of additional cost. As per the directives issued by Hon.ble MPERC vide letter No.173 dated 20.1.2009, to intimate cost benefit analysis and other related information, MPPGCL has submitted a brief note vide No.52 dated 5.2.2009. The approval of Hon.ble MPERC is still awaited. The petition has been prepared considering the actual expenditure incurred (on fuel) till CoD. The petition is based on Hon.ble MPERC.s Terms & conditions of Generation Tariff Regulations, 2005, for generation of power for FY07 to FY09. The petitioner humbly submits before Hon.ble Commission to determine the tariff for the station. 5. It is pertinent to mention that the Hon.ble Commission has issued a tariff order dated 7th March 2007, for the plants from which MPPGCL is already generating power, on Multi Year Tariff principle for a period of three years. The tariff block shall be over by March 2009. This unit has been synchronized in mid of the tariff block and hence, with a view to maintain similarity in the tariff block periods, MPPGCL is submitting the tariff petition for this plant for FY 09. It is proposed that after this time block, the petition shall be submitted
Also principles of Operation and Norms as prescribed by CERC vide its order dated. MPPGCL humbly submits before the Hon. The Energy (Variable) Charges shall cover Fuel Cost 7. 2005 (G-26 of 2005)". Interest on Working Capital b. This ultimately will affect the interest of consumers adversely. Depreciation including Advance Against Depreciation iii.ble Commission to kindly permit the same. namely. Return On Equity iv. for ex-bus scheduled energy corresponding to scheduled generation in excess of ex-bus energy corresponding to target Plant Load Factor (PLF).26. Thus. The annual capacity (fixed) charges shall consists of i. which are neither determined by MPPGCL nor in control of MPPGCL. the efforts of MPPGCL in making the plant available for generation at the discretion of SLDC does not get due recognition and in long run may affect the motivation of the company to optimize the performance from the plant.03. Since the scheduled energy and ex-bus energy can be determined only after annual actual performance of the plant. Incentive / Penalties shall be affected in pursuance with . tariff for sale of electricity from a thermal power generating station shall comprise of two parts. Interest on Loan Capital ii. MPPGCL humbly submits before Hon.s efforts are confined and limited to make the plant available for generation. Operation and Maintenance Expenses v. It is prudent to mention that the penalty for not being able to maintain the desired availability of plant always lies with MPPGCL and commensurate fixed cost shall be got deducted from the monthly bill. Thus. It is pertinent to mention that. with a view to safeguard the interest of consumers. The station shall also be eligible for incentive on the rate specified in "MPERC (Terms and Conditions of Generation Tariff) Regulations. 8. the recovery of Annual Capacity (Fixed) Charges and Energy (Variable) Charges.by MPPGCL for determination of generation tariff along with other existing units.04 shall be guiding. 6. 2005 (G-26 of 2005)".ble Commission that MPPGCL. Thus. Thus providing incentive on deemed generation on marginal availability above target also synchronizes with the principles of natural justice. The actual generation shall depend upon the dispatch instructions issued by SLDC depending upon system requirement. in pursuance with "MPERC (Terms and Conditions of Generation Tariff) Regulations. At this stage MPPGCL would like to pray before Hon.ble commission to consider permitting incentive on deemed generation with normative auxiliary consumption over and above the target availability. which shall be worked out in the following way: a. MPPGCL has determined Fixed cost on target PLF only.
MPPGCL has also considered tax holiday during initial five years of operation of the plant.Rs Cr. Tax (MAT) @11.87 51. and based on these. the same shall be chargeable extra.Rs Cr. In case. Alt.17 0. if payable on the project shall be chargeable extra on actual basis.Rs FY 09 1920 49.Rs. liability of tax and duties (except on incentive or additional profit over and above RoE) arises. The performance parameters and other cost elements have been duly elaborated in the enclosures to the petition. 9.Rs Cr.Rs Cr. Fringe benefit tax.00 15.Rs Cr.15 33. Similarly. the cost of generation works out as under:- Generation Cost of 1x500 MW Birsinghpur Table No.78 0. Min. Water Charges are payable to Govt. 10. 1 Particulars Net Generation Depreciation Interest on Loan Return on Equity Advance Against Depreciation Interest on Working Capital MPERC Fee O&M Expenses MU Cr. the same shall be charged extra.12 102.64 . on the rates as specified by GoMP.the specified norms and order considering above request of MPPGCL in the final order in this regard by Hon'ble Commission. Cr. due to change in Government policy or otherwise.33% has been considered. if any.
Rs p/u Cr.Rs p/u 252.Rs Cr.Total Fixed Cost Variable Charges Cr.Rs p/u .67 259 Total Indicative Average Rate Amount Charged as MAT Total + Taxes Indicative Average Rate Cr.62 497.05 256 6.Rs.33 124 491.72 238. Cr.
PRAYER I. Consequent to the implementation of power sector reforms in the State where under, amongst others, the activities of generation, transmission, distribution and retail supply of electricity carried out by MPSEB have been restructured and transferred initially to the five successor corporate entities, the function of power generation has been vested with MPPGCL. Subsequently, the MP Tradeco (the sixth company) has been vested with the responsibility of Power trading and MPPGCL is required to sell its entire generation from existing capacity to MP Tradeco at a rate determined by Hon.ble MPERC. II. CoD of 1x500 MW Birsinghpur Extension Unit has been declared as 28th Aug 2008. Actual generation shall be available only for 7 months approximately in FY 09. As per GoMP notification entire power of this station is intended to be sold to MP Tradeco for onward sale to Discoms, at a rate determined by Hon'ble Commission III. In view of the above, the petitioner respectfully prays that Hon.ble Commission may kindly:a. Accept the tariff (Fixed and the Variable Cost) as elaborated in para 7 to 10 above and permit recovery in equal monthly installments. b. Accept and permit recovery of Incentive on the terms specified in "MPERC (Terms and Conditions of Generation Tariff) Regulations, 2005 (G-26 of 2005)" and on availability factor, as requested in para 8. Deduction on account of under achievement shall also be applicable as specified in the above regulation. c. Permit additional recovery on account of Water Charges, Cess, taxes, duties and levies on actual basis, over and above the amounts elaborated in the table above. d. Permit the recovery of full charges at actual parameters considering the impact of factors beyond control of the utility. e. To allow an estimated expenditure of on account of construction of new ash bund separately, this shall be considered as additional capital expenditure. f. Permit recovery of expenses understated / not considered in this petition e.g. cost, interest and finance charges, depreciation, balance works to be executed after CoD etc at a later stage, if required. g. Permit recovery of fixed/ variable charges as proposed above w.e.f 28th Aug. 2008 on provisional basis, till issue of final order and effect
reconciliation based on the rates approved by Hon'ble Commission at a later stage. h. Condone any inadvertent omissions / errors / short comings and permit the applicant to add / change /modify / alter this filing and make further submissions as may be required at later stages. i. Pass such orders as Hon.ble MPERC may deem fit and proper and necessary in the facts and circumstances of the case, to grant relief to petitioner.
Date : 23 March 2009
-Sd(S. P.Soni) Place: Jabalpur S.E. (CP: MPPGCL) MPPGCL:JABALPUR
Index Page 1. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Brief Introduction of MPPGCL Premise Background of the Project Brief Introduction of the Project Cost of the Project Funding of the Project The Principles/Norms of Operation Annual Capacity Charges O&M Charges Depreciation Return on Equity and Tax Interest on Working Capital Variable Charges Other Expenses Generation 11 19 21 25 33 41 44 45 46 48 50 51 52 54 55 56 58 61
16 Cost of Generation and Billing 17 18 Financial Statements Tariff Formats
distribution and retail supply of electricity carried out by MPSEB have been restructured and transferred to the following corporate entities.. MP Power Generating Company Ltd.. MP Paschim Kshetra Vidyut Vitaran Company Ltd.12th June 2008 has issued final Opening Balance Sheet of MPPGCL along with other restructured utilities of erstwhile MPSEB.Brief Introduction of MPPGCL 1. Rampur. . the activities of generation. Jabalpur 5.s notification dated 31st May 05. 1. Jabalpur MPPKVVCL Jabalpur. modify or otherwise change the values or terms and conditions or any one or more of them during provisional period upto 31st May 06. 1956 and having its registered office at Shakti Bhawan. MP Power Transmission Company Ltd..2.P. The function of power generation has been vested with Madhya Pradesh Power Generating Company Limited (MPPGCL). Jabalpur 6 MP Power Trading Company Ltd.. M. transmission.The State of Madhya Pradesh has implemented power sector reforms in the State where under. The company has been assigned the assets and liabilities (on provisional basis) to discharge the function of power generation vide GoMP.1. Poorv Kshetra Vidyut Vitaran Company Ltd. vary. Bhopal 3. Jabalpur. the period has been extended by another eight months. the GoMP vide its notification Dtd. In this notification. Jabalpur 2. However. amongst others. The petition is based on the final Opening Balance Sheet. MP Madhya Kshetra Vidyut Vitaran Company Ltd. GoMP is provided with a right to amend.. Subsequently. Indore 4. a company incorporated under the Companies Act. Sagar and Rewa Regions Bhopal and Gwalior Regions Indore and Ujjain Regions Whole State Whole State Whole State MPMKVVCL MPPKVVCL MP TRANSCO MPPGCL MP TRADECO 1.
3. Equity From GoMP PFC Project Specific Liabilities LIC CSS REC Total Loan from MPSEB (Generic) Fuel Liabilities Staff Related Current Liabilities Towards Suppliers Intt. as per the table given below: As Provided by GoMP Vide Notification Dated 31st May 05 Table 1-i Opening Provisional Balance Sheet Liabilities Amount Assets Cr. The Government of Madhya Pradesh (GoMP) notified the provisional transfer scheme vide its notification No. on a provisional basis. Accrued but not Due Others Total Total Liabilities 191 29 143 21 Current Assets 1120 488 3 334 1945 1945 Capital Works in Progress 259 stock Cash and Balances Loan Advances Sundry Receivable Others Total Total Assets 244 11 3 34 1040 Fixed Assets 1278 Gross Assets Less Accumulated Depreciation Total 2878 2878 Amount Cr. 3679/FRS/18/13/2002 dated 31st May 2005 according to which MPPGCL was assigned assets and liabilities. 4453 1576 342 727 727 4210 292 292 4210 .Rs.Rs.Status of Generating Company 1.
60 32.025.29 1.4.06 98.75 252.22 642.801.31 2. The provisional transfer scheme was modified and finalised by the State Govt. This final Opening Balance Sheet as on 12 June 2008 is presented below.64 1.73 .1. and the final Opening Balance Sheet was notified by the GoMP on 12 June 2008. Assets 1 Gross Block Fixed Assets 2 3 4 5 6 7 Current Assets 8 9 10 11 12 13 14 Intangible Assets Deferred Costs Subsidy Receivable from GoMP Total Assets Capital Works in Progress Investments Stocks Receivables against Supply of Power Cash and Bank Balances Loans & Advances Sundry Receivables Total Current Assets (6 to 10) Less : Accumulated Depreciation Net Fixed Assets Cr.109.704.20 1.841.08 0.27 4.99 1.Rs 4.506.
is presently headed by the Chairman and Managing Director.18 924.1 2 3 4 5 6 Liabilities Security Deposits from Consumers Other Current Liabilities Total Current Liabilities (1+2) Borrowings for Working Capital Payments Due on Capital Liabilities Capital Liabilities (a) Equity Cr. Jain Shri S. The MP Power Generating Company Ltd.00 4. NTPC . SBI ED(WR).N.5. Prasad and brief of other Directors of the Company are:- 1.915. (b) Loan Total(a+b) 8 Consumers' Contributions. 2.04 1.Rs 924.K.40 1.875.73 1.918.48 - 7 Funds From State Govt.841. Agrawal CGM.18 124.Grants & Subsidies towards cost of Capital Assets Reserves and Reserve Funds Accumulated Surplus / (Deficit) Total Liabilities 9 10 11 0.03 1. Shri D. Shri D.08 3.B.
The plant wise details are as under:Generation Capacity Table No 1.5 MW thermal and 837.0 = 2 x 120 = 240.0 .2006 is 2984.03.3.1 Power Station Thermal Power Stations 1 Amarkantak Thermal Power Station (Chachai) PH 2 PH 1 Installed Capacity (MW) Total MPPGCL Share 30 + 20 50. GoMP Secretary (Finance) GoMP 1.0% 60. Installed Capacity & Expansion Plan Total installed capacity of the MPPGCL.6.0 1142.0% 420.5 420.5 410.0% 50.1% 100. Venkataraman Shri Sanjay Bandopadhaya. as on 31.0 100.0 Complex 2 Satpura Thermal Power Station (Sarni) PH 1 PH 2 PH 3 Complex 3 Sanjay Gandhi Thermal Power Station Birsinghpur PH 1 2 x 210 = 2 x 210 5x 62.0 312.0 420.5 420.2 MW Hydro power. IAS Smt Alka Upadhyay. PFC Ex-Director.0% 100.6.0 1017. 5.0 420.0 PH 2 420. IFS ED. 6.0% 290.0% 89.0% 100.0 100. consisting of 2147.5 410.0 100. 4.0% 100.5 = 200 + 210 = 2 x 210 = 290.7 MW (including its share in bilateral interstate projects).0 187. Shri Ashok Gupta Shri G. NTPC Secretary (Energy).0 240.
0% 88.7% 100.0 100.5 100.0 99.0 172.0% 50. Generation Capacity Operated by MPPGCL .0 Devlond 3 x 20 = Complex 4 5 6 7 8 Birsinghpur HPS Bargi HPS Rajghat HPS Total Hydro Generation Total Generation 1.0 100.5 Power Station Hydro Power Stations 1 Chambal HPS Gandhi R.0% 60.0 3378.0 1 x 20 = 2 x 45 = 3 x 15 = 20.0% 100.0 386.7 57.0 315. Sagar Jawahar Sagar Complex 2 3 Pench Totladoh HPS Bansagar Tons HPS Tons Silpara 2 x 80 = 3 x 105 = 2 x 15 = 5 x 23 = 4 x 43 = 3 x 33 = Installed Capacity (MW) Total MPPGCL Share 115.5 86.0% 66.= Complex 4 Total Thermal Generation 840.0 22.0 1106.0 405.0% 100.0 2147.P.5 50.0 90.5 837.0 60.0 106.0% 100.0% 100.0 49.2 2984.0% 94.0% 50.0% 100.5% 840.7.5 193.7 315.0% 50.3% 90.0 30.0% 50.0 405.0 160.0% 20.0 45.0 2272.
5 290.0 0.0 MW Hydro power.0 2272.3% Rajasthan Maharashtra 40.8% 8. The plant wise details are as under:Generation Capacity Operated by MPPGCL Table No 1.5 MW.0 0.5 MW thermal and 835.5 830.0 90.5 115.0 405. consisting of 2272.5 53.0 125.0 45.0 2147.0 57.3 MW capacity belong to other States. Out of this 258.0 20.5 830.0 187.3 0.0 160.1 MW Station ATPS Chachai STPS Sarni PH1 STPS Sarni PH 2&3 SGTPS Birsinghpur Total Thermal Gandhi Sagar Pench Bansagar Complex Birsinghpur Bargi Rajghat Total Hydro Total Capacity Installed MP Capacity Share 290.7 2849.0% Rajasthan % State's Name .0 22.0 840.7 405.0 22.03.0 20.0% 15.3 258.0 90.3 50.0 312.5 57.0 835.3% Uttar Pradesh 5.2006 MPPGCL is operating 3107.5 106.5 133.7.0 0.0 3107.0 840.2 Other State's Share MW 0.5 701.5% 50.As on 31.0% 33.0 125.0 0.
1.8.0% Rajasthan Rajasthan 1. Similarly. however these projects are Still under execution.9.0 271. 1.5 50.0% 50.9.0 99. MPPGCL also has a share of 135.5 135. as under:- MPPGCL’s Share in Generation Capacity installed in Other States Table No 1.5 MW in hydro generation capacity installed in neighboring States.0 86.0 49.P. Sagar Jawahar Sagar Total 172.1 Station Type Planned MP's Planned COD Status Capacity Share Jhinna (Bansagar IV) Madhikheda Hydro Hydro 2x10=20 3x20=60 100% 100% FY 07 2x20=40 MW during FY 07 & 20 MW subsequently End of FY 07 Commissioned Units are commissioned SGTPS Birsinghpur V ATPS Chachai V Therma l Therma l 1x500=500 100% Commissioned on 28th Aug 2008 Under Construction 1x210=210 100% End of Jun FY 09 . Capacity Addition and Future plan All-out efforts are being made to meet the growing demand of power in the State.8. Capacity Addition Plan Table No.1 MW Station Installed MPPGCL Share Other Capacity State's Name MW % R. The MPPGCL had a plan of adding 790 MW during 10th plan as elaborated in the table below.
Govt. 7 2. 7 2. Thus. .P.1 S. Further.57 2147. of M. GoI has accorded Mega Power Project Status to this Project.2 24% 3774. . 5 72% 837.12 2857. has given In Principle Clearance for installing . 7 2.57 2147. installed capacity of MPPGCL is increasing gradually and likely to reach 3774. .11.5 % of Total 72% Hydro Capacity 837. GoI. 5 2147. 5 71% 837. Khandwa.57 2147.2 30% 3064.7 3. Project has to be implemented through ICB in two packages specifying the unit size as 2x 600 MW (i) Main Power Block & (ii) Complete BoP with respective civil works. No Particulars 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Actual Actual Actual Actual Actual Actual Actual Proj.2 28% 2984. 5 72% 837. 7 2. All the clearances for the project have been obtained.57 2147.7 MW during FY 09. 7 3.2 28% 2984. Thermal Capacity 2147. .2 76% 917. 23 TMC water allocated by NVDA & NoC also issued by CWC.0 1.2 28% 2984.10. . 7 2. 5 72% 837.2 28% 2984. M/S PFC has sanctioned . 7 2.2 29% 3044. 5 72% 837. Shri Singaji Thermal Power Project The administrative approval has been accorded by GoMP in May2001 for installation the Project near Village Purni in Distt.12 % of Total 28% Total (Share of MPPGCL) Thermal / Hydro Ratio 2984.39 2147. 5 70% 917.57 1.Total 790. consisting of thermal and Hydro shares as elaborated below: Mix of Generation Capacity Table No 1.10.
loan amount to the tune of 80% (Rs. 3242 Crores) of the estimated Project .
3.2008. orders have been issued on 10. in Jun.2008 to M/s. 2x800 MW Bansagar Thermal Power Project near village Tikuratola in District Shahdol (MP) using Super Critical Technology through Joint Venture with M/s BHEL or by other method. 10 & 11 are planned for installation.12. Administrative approval has been accorded by State Govt. For execution of Main Power Block an order has been placed on 12. For execution of Main Power Block on EPC basis. . Unit 10 & 11(2 x 250 MW) Units at Satpura Thermal Power Station as Extension. BHEL. 4053 Crores). BHEL.2008 to M/s. Unit no. . .Cost (Rs. MOEF clearance also received recently in Mar.2009.12. the GoMP has also accorded administrative approval for implementation of this project.s letter No. 8020/13/2008 dated 31. As per Energy Department GoMP Bhopal. 06.. Satpura Thermal Power Station Extn.
ble Commission vide its "MPERC (Terms and Conditions of Generation Tariff) Regulations. this section contains certain key issues which may have impact on the generation cost of 1x500MW Birsinghpur Thermal Power Project of MPPGCL and on the assumptions / rationale applied by the applicant for determination of generation cost. Further. The petition is being submitted under the provisions of "MPERC (Terms and Conditions of Generation Tariff) Regulations. wherein the Hon'ble Commission can determine the tariff of new capacities on provisional basis. The Govt. 2005 (G-26 of 2005)” return of 14% post tax has been considered on the equity contribution for the project. 2. amongst others. 2005 (G-26 of 2005)” has determined terms and conditions for determination of generation tariff for first block of Multi Year Tariff i.0% Surcharge and 3% Education Cess. The petition is based on Final Opening Balance Sheet.s notification dated 31st May 05. transmission. . distribution and retail supply of electricity carried out by MPSEB have been restructured and transferred (initially to the five then to) six successor corporate entities. Project cost has been provisionally determined after consolidating the available data for various expenses actually incurred on best available basis. The truing up of Project cost and tariff can be done within one year after CoD. present level of corporate tax is 30% + 3.4. FY 07 to FY 09. the activities of generation. Accordingly. Return on Equity and Taxes: As per the provisions of "MPERC (Terms and Conditions of Generation Tariff) Regulations. Jabalpur.e. the function of power generation has been vested with Madhya Pradesh Power Generating Company Limited (MPPGCL). The company has been assigned the assets and liabilities (on provisional basis) to discharge the function of power generation vide GoMP. Multi-year Tariff: Hon. Rampur.1. The State of Madhya Pradesh has implemented power sector reforms in the State where under. of MP vide its notification dated 12th June 2008 has issued Final Opening Balance Sheet of MPPGCL along with other restructured utilities of erstwhile MPSEB.2. The petition is prepared in accordance with the provisions of the regulation and prevailing CERC orders. there will be a tax holiday on the project for first 2. However. 2.3. 1956 and having its registered office at Shakti Bhawan. 2005 (G-26 of 2005)".Premise 2. a company incorporated under the Companies Act.
Accordingly no amount has been considered in this petition. however. Terminal Benefits and Pension Payment Hon. 2. duties and Cess (except on incentive of additional profit over and above RoE) arises. MPPGCL humbly submits before Hon'ble Commission to permit the same. Minimum Alternate Tax (MAT). till the policy regarding payment of pension and terminal benefits was due to finalize. . It has been mentioned that the write offs may be considered at the time of truing up. Thus. if any liability of taxes. In the Tariff order for FY 06 (Dated 25th Jan 06). In case.. on the rates specified by GoMP. therefore. with a view to coverup such associated risks a provision of about 1% of closing amount of receivables was provided as provision for bad debt. Fringe benefit tax etc. five years. As per earlier arrangement. Now.f from FY 07. Water Charges are payable to Govt. if any at the time of finalization of project cost at a subsequent stage. the same shall be charged extra. MPPGCL has. if payable on the project shall be chargeable extra on actual basis. The same shall be chargeable extra. the provision is not considered at this stage. MPPGCL humbly submits before Hon'ble Commission to permit the same. policy or otherwise. In the tariff petition submitted by MPPGCL (dated 23rd Jan 06) for determination of tariff of existing plants.5. considered tax holiday during initial five years of operation of the plant and has not loaded any incidence of the same.1. MPPGCL will approach Hon'ble Commission when such policy is approved at a subsequent stage.ble Commission in the philosophy for bench marking of O&M charges vide its draft terms and conditions for determination of generation and transmission tariff has excluded the amount of pension payments and terminal benefits to be paid to the employees from O&M charges.e.5. these expenses were to be paid by Transco. Accordingly while determining the O&M charges these expenses have been excluded from O&M charges. Similarly. Hon'ble Commission has not considered the same mentioning that the company has not formulated any policy for writing-off of bad debts. due to change in Govt. provision has been made to consider the same in the annual statement of the accounts of MPPGCL w. Provision for Bad and Doubtful Debts The company has just started its functioning and hence the risk associated and trends are not available.2.
not proceeded further as the issue of Escrow arrangement against IPP. Due to resource crunch. some of these projects were offered to private investors for implementation. support oil system. intake. gate complex. however. Government of Madhya Pradesh have accorded administrative approval for the setting up of 1x500 MW additional unit at Sanjay Gandhi Thermal Power Station.2. 3.3/31/13/97 dated 24. Some of these projects progressed to obtain CEA techno-economic clearance in the past. In order to meet the power demand of the State in the shortest possible time. reservoir. with some modifications only.3. At present several medium and large hydro electric projects are under construction but due to hydro electric project. Keeping in view uncertainties of IPPs availability to the MP grid. Birsinghpur vide their letter No. marshalling yard. erstwhile Madhya Pradesh State Electricity Board has proposed to augment the generation capacity by addition of new generating unit at Sanjay Gandhi Thermal Power Station through State Sector taking advantage of lower capital cost of new power station due to utilization of many of the existing infrastructural facilities like land. These projects have. 3.s long gestation period. The State had identified number of projects for addition of generation capacity.10197/F. therefore.Background of the Birsinghpur Project 3. it is necessary to take up thermal generation projects as the gestation period is considerably less in comparison with hydro electric projects.1997. railway line etc.s payment from MPSEB for power supply could not be finalized till date. the power demand of the State could not be met appropriately. power shortage is being experienced in the State.1. .12. which would drastically worsen the Power situation in the State in the coming years. The power crisis has further worsened after the formation of the new state of Chhattisgarh. The installation of new power generating units in the State of Madhya `Pradesh has lagged behind the load growth and.
Further. as per requirement of CEA a Corrigendum was also published in various News Papers in April. even after considering all the proposed units of state and Govt.12. However the .3/31/13/97 dated 24.10.98 and “Nav Bharat” dated 8.19/31 / MPS / 90 / 285 dated 22. Bhopal.10197/F. Erstwhile MPEB published the scheme for 1x500 MW coal based power plant at Sanjay Gandhi Thermal Power Station in Local Hindi daily News Paper “Deshbandhu” dated 6.1997. vide letter No. The brief detail/status of various clearances is as follows:a) Publication under Section 29 ES Act 1948.P. All other clearances were also been obtained and formalities for installation of project were completed.4. Government of Madhya Pradesh had accorded administrative approval for the setting up of 1x500 MW additional unit at this site vide their letter No. b) Water Availability (i) Water Resources Department Government of Madhya Pradesh. 16th Electric Power Survey forecast of Madhya Pradesh (composite) was bifurcated by Central Electricity Authority into recognized States of Madhya Pradesh and Chhatisgarh on the basis of segregated data for Chhattisgarh and rest of Madhya Pradesh collected from Madhya Pradesh Electricity Board and supplemented by the data subsequently supplied by Chhattisgarh State Electricity Board.12.98.3. It was appreciated that the State will have shortage in “Peak Load” and in “Energy” requirement for considerable period. The proposed addition in generation through 1x500 MW will bridge the growing gap between power supply and demand to that extent. Sector are commissioned.1990 & No. 29/12/96/ Madhyam/ 31-2189. dated 21.4.4. This scheme was also published in M. Power Scenario in MP For assessing the power requirement in the state of Madhya Pradesh.1999 has reconfirmed allocation of 3 TMC consumptive water towards the requirement of various existing and proposed units at the Birsinghpur Project of MP State Electricity Board. „98.03. State Gazette dated May 29.
2001. revised EIA study has also been carried out & the same along with other information was resubmitted to Ministry of Environment & Forest (MOEF) in December.s) L. due to change in the scheme of Coal Handling Plant. New Delhi has granted the extension to NOC.same was revised to 2. New Delhi vide their letter dated 1. c) Environmental clearance Erstwhile MPEB has obtained NOC for environmental clearance from State Pollution Control Board for setting up 1x500 MW Thermal Power unit vide letter No.2002.96 read together with 20718/TS/MPPCB/97 dated 2.4. AAI/NAD/ 20012/35/9-ARI dated 26. Government of India. and for laying of ash . e) Land The power station was to be located within the existing plant boundary as an extension to the existing power station. 2001 and therefore extension was applied.85 TMC vide OSD (WRD. (ii)Ministry of Water Resources.126.96.36.199.29/12/96/ Madhyam/31/399 dt. Airport Authority of India.No.97. The clearance was valid up to November. Environmental clearance was there after given by MoEF vide their letter dated 19th July 2002. water from Johilla Sub basin of Sone basin for circulating and consumptive water requirement for SGTPS having 4x210 MW units (existing) & 1X500 MW unit (proposed).3. d) Civil Aviation Clearance MPSEB has obtained Civil Aviation Clearance from Airport Authority of India for a Chimney with height of 275 M vide letter No. EIA study for setting up 1x500 MW Thermal Power unit at SGTPS had already been carried out and MOEF were approached for according necessary environmental clearance.2002 have issued “No Objection Certificate” for use of 3 TMC or the Quantity as may be worked out by CEA whichever is less.12. Major land already acquired earlier in Phase-I has been used for installation of main plants and equipments however. Subsequently. 6491/TS/EZ/MPPC/96dated 19.
In view of the above award.09.8 mtpa from the year 2003 by the Standing Linkage Committee (LT).2001. . Subsequently Forest Department has awarded the 100 Ha Forest land in the 2nd phase Ash Bund in Nov. Regarding the requirement of forest land for ash disposal (292 Ha). the ash generated by new unit of 500 MW can also be dumped into this area during initial years of operation. 1340 MW for about next 2 years. Department of Agriculture & Co-operation had allowed 100 Ha of land in phase – I and also allowed to consider balance 192 Ha of land in further two phases to avoid large number of trees from being clear felled at a time and also to avoid excessive soil erosion.12.04. Therefore. the Ministry of Agriculture. forest land to the tune of 4.7 Ha was only additionally required. This private siding has been suitably augmented to accommodate one more unloading facility for meeting out additional requirement for 500 MW Unit. GoI during the meeting of the committee held on 15. By that time the second phase of ash dyke shall be ready for disposal of ash generated by all units of SGTPS.. MPSEB has already approached State Forest Department for the transfer of 100 Ha of land in the II2nd phase required for SGTPS complex including the extension unit of 500 MW. f) Fuel Coal being obtained from Korba Coal fields for which linkage of coal was granted to the tune of 2. Regional office.The coal being transported to Power house through existing private siding laid between Mudariya crossing station of Katni-Bilaspur section of SE Railways and our SGTPS complex .pipe line. same was granted by MoEF.e. Bhopal on May. The existing ash disposal area of 100 Ha is still sufficient for (4 x 210 MW + 1 x 500 MW) i. g) Transportation of Fuel Fuel being transported by railways from Korba coalfields for which representative of Ministry of Railways had already agreed during the meeting of SLC(LT) held on 15th Dec 2000.2000 and 07.o6. Ministry of Coal.
was envisaged to install 6 units of 210MW each.1. Birsinghpur it has become largest Thermal Power Station of MPPGCL. With the advent of technology and availability of 500 MW Units was decided by MPSEB to set up 1x500 MW capacities in lieu of balance 2x210 MW Units in the space available in the Birsinghpur Plant site. District of Madhya Pradesh. The geographical Map of the project is as under:- . is a coal based plant presently have 4 units 210 MW commissioned (having 100% share of MP only). Sanjay Gandhi Thermal Power Station which is located in Umaria.Brief Introduction to 1x500 MW Birsinghpur Thermal Power Project 4. With the addition of 500 MW capacity at SGTPS.
Of Water Resources No. Steam Generator ─ . ─ ─ ─ ─ Approval of M. tap supported. It is provided with oil support burners and adequate number of coal mills.05 Cr.97 for setting up of 1 x 500 MW additional unit at Sanjay Gandhi Thermal Power Station. Administrative approval of State Govt.75 Cr. .C.43 Cr 5. IDC + Fin.2. 2093. two pass. 4. Overheads 82. Accordingly the project was taken up after obtaining requisite following clearances (copies enclosed as annexure) as follows:. .9. ─ Approval for supply of Water by Deptt.2002 granting permission to establish the unit. Techno-economic clearance of the project granted by CEA vide O.3. The brief description of some of major systems of the 500 MW plant envisaged is described below:4. No.3. for grant of linkage of coal from Korba Coalfields vide O. balanced draft.M. . vide letter No.P. No. Turnkey cost 1629.1. dated 16th January 2001. Approval of S. . Cost 305. ------------------------------------------------------------Total project cost 2093. Non EPC cost 69. Environmental clearances from Ministry Environmental Forest vide their letter dated 19th July 2002.93 Cr. 29/12/96/M/31/399 dated 26.4.M. 1558/TS/MPPCB/2002 dated 13. 10197/F3/31/13/97 dated 24. 2002 at a total estimated cost of Rs.75 Crore as under:1.4. ------------------------------------------------------------- 4. The steam generator is outdoor.L.84 Cr. Birsinghpur.P.12.50 Cr.2002 from River Johilla. 3.C. dry bottom type designed for burning pulverized coal as principle fuel. controlled circulation. . 2. reheat.B. 2/MP/46/96-PAC/11280 – 302 dated 20th Dec. . Land & RR 6. single drum.
condensing. 3000 RPM. three cylinder (one HP one IP and one LP cylinders). Electrostatic Precipitator The steam generating unit is provided with one set of Electrostatic Precipitator having four passes . multistage. centrifugal type are provided. The boiler is provided with a set of soot blowers for on load cleaning of heat transfer surfaces i. 4. Steam generator is suitable for operation with HP-LP turbine by-pass system.3.e. dual flow. Each pump is supported by a single stage booster pump. Boiler Feed Pump Three number of Boiler Feed Pumps each having 50 % capacities. Four regenerative air pre-heaters with electric motor main drive and air motor as standby drive are provided at back end.3. The ESP is having adequate number of ash hoppers for storing ash collected in operation of the Boiler. driven by direct coupled motors are also provided.5. eight fields would be in service and the other one would remain as standby. and reaction .4. Out of three pumps two are steam driven and one is electrically driven. super heaters.3. primary fans of axial reaction single suction type. re-heaters. ─ Steam generators are designed to operate with the HP Heaters out of service condition and deliver steam to meet the Turbo Generator electrical output at 100% MCR. 4. which are connected with gas duct bifurcated to two air heaters. multistage. tandem compound.3.─. Steam Turbine Generator Unit Steam Turbine The steam turbine is a 500 MW MCR. The ESP is equipped with automatic voltage control to minimize power consumption. . of which. Three Nos. with 5 on either side. economizers and air heaters.Each pass comprises of nine fields in series for collection of fly ash. water walls. 4. Milling Plant The boiler is provided with 10 (8+2) Bowl Mills type XRP 1003.3. 4.2. horizontal. barrel cashing.
All essential controls and safety inter-locks are provided. with 5 minute hot well capacity. Condensing Equipment Two pass.3. 4. each of 50% capacity. . The high pressure closed heaters are horizontal type and provided with both drain cooling and de-superheating zones in addition to the normal condensing zone. It is capable of operating in isolation or in parallel and with the power grid. with voltage variations of (+) 10% and frequency variations between 47. multistage condensate pumps. . cylindrical rotor.6. commensurately rated for the turbine outputs. surface condenser. The generator is provided with brushless excitation with PMG. are provided to pump condensate from condenser hot well to the Deaerator. rectangular. Generator The generator is directly connected. Two number vacuum pumps with 100% capacity each are provided to maintain the vacuum in the condenser by expelling the non-condensable gases. box type.turbine type. .5 Hz. The low pressure feed water heaters are also horizontal/vertical type and are equipped with only drain cooling and condensing zones. is provided with on load tube cleaning equipment (without debris filter) and an arrangement of On-load maintenance of one half of the condenser at a time.5 Hz to 51. horizontal shaft. Three vertical centrifugal. It is having all the essential auxiliaries. capable for maintaining the required vacuum while condensing steam at the maximum rating of the turbine. Deaerator and Feed Heater The unit is provided with a variable pressure spray type/ spraycum-tray-cum-re-boiling type deaerating heater with a feed water tank.
Bottom ash from water impounded BA hopper will be removed and send to ash slurry pump house using jet pumps. Dry fly ash from transfer tanks shall be conveyed to RCC silos through Pressure Conveying System and unloaded into trucks for disposal to cement industry/ brick making plants & balance Ash shall be disposed off in wet form to Ash Dyke Area. 4.7. created by Vacuum Pumps.3. shall be extracted and pneumatically conveyed dry. Ash handling system has also been provided with Ash Water Recovery System to meet out the requirement of Environmental norms in this regards. Fuel Oil (FO) System HFO / LDO system is envisaged for boiler start-up and flame stabilization and has been taken from existing oil unloading station for 4x210 MW units. The crushed coal either taken to fill Boiler bunkers or stacked in crushed coal stock piles by using conveyor for feeding boiler bunkers or Stacker for stacking in stock yard.3. 4. to the transfer tanks through vacuum. voltage and power factor. additional storage tanks each for HFO and LDO are provided with separate Fuel Oil Pump House to meet out the requirement.2.The excitation system is capable of supplying excitation current of the generator under all conditions of operation of load. The bottom ash so collected in the slurry sump shall be pumped in slurry form to ash pond.8. Fly ash. Ash Handling System Bottom Ash (BA) will be collected in water impounded BA hopper located beneath the boiler. However for 500 MW unit.3. . from where it shall be taken to Secondary Crusher House # .9. collected in Economiser /APH /ESP hoppers. Coal Handling System The unloading conveyor system through Track hopper has been provided with Primary Crusher House (PCH). This system comprises of barge mounted recovery water pumps to recycle the excess water from Ash Pond through recovery water pipes leading to clarifier in PH premise for subsequent treatment and utilization. 4. one no.
Water treatment system (DM Water. 220KV-4 Nos. at Birsinghpur and Jabalpur . The CW system comprises of 4x33. Fire water tank and to Pre-treatment plant and then to Clarified Water tank for further services. Fire water make up. Plant Water System Water drawn from Johila Reservoir shall meet requirements of CW for Condenser and other Auxiliaries. through the water screening plant. DMCW system make up and potable water). Air washer and AC system make up. 220 KV DCDS linking between Amarkantak and Birsinghpur . CW system is once through system employing a siphon head recovery arrangement across the condenser for cooling water flow. 220 KV DCDS Traction feeder through MPP TC sub station .10. 4. Whereas raw water system comprises of 3x100% vertical wet pit type Raw Water Pumps. Ash water make up. Raw water is supplied to Traveling Water Screen spray system. Ash handling plant. ESP/APH washing). 220 KV DCDS line between 220 KV Sub Station of MPPTCL. A common pump house shall be located downstream of Water Screening Plant from where the cleaned water will flow to the once through CW/ACW system and to other needs of the plant after proper treatment as required for the relevant services. 220 KV DCSS outlet between Birsinghpur & Reva . Water from Clarified tank shall also be drawn for meeting out the requirement of DM plant. shall draw water to meet complete water requirements of 1x500 MW Unit. The CW system delivers cooling water to the condenser for its cooling. The hot return water from Condenser and ACW system leads to seal pit for further discharge to raw water reservoir through discharge channel.33% vertical wet pit type CW pumps. A channel tapped off from the existing intake canal.3. Interconnections have been provided between .4. Service water system (Plant / colony washing & gardening. seal water for Ash handling plant.11. CW chlorination system. Coal handling plant dust suppression. 220 KV DCSS outlet between Birsinghpur & Satna . 400 KV Birsinghpur – Katni-Damoh DCDS line(Charged at 220 KV initially) . Electrical System The power evacuation facilities available for evacuation of power from Sanjay Gandhi Thermal Power Station 4x210 MW are give below: .3.
oil-Immersed.6 MVA as required. Existing 220KV Switchyard has been extended by including two more bays complete with all equipments including metering protection and control panel and bus bar protection system. oil-immersed. 220KV S/S Damoh and 220 KV S/S Narsinghpur is also proposed. second circulating of Damoh-Tikamgarh 220 KV DCSS line and installation of 160 MVA 220/132 KV transformers each at 220 KV S/S Tikamgarh. Further.9 KV bus through step down distribution transformers of 2 MVA and 1. It is also proposed to lay a 400 KV DCDS line between Damoh and Gwalior via Tikamgarh to evacuate power towards Gwalior area. Each station transformer will have two secondary transformer one for 11KV and the other for 6. 207 MVA. with a two main and transfer bus. 400/220/33KV.6 KV. 63 MVA station transformers (one connected to 220KV and the other to 400KV). This line will pass through at a distance of about 15 Kms.7 MVA. with graded. A 220 KV DCDS line is proposed between Katni and Narsinghpur to evacuate SGTPS power towards Narsinghpur area. Thus there will be four 400 KV feeders available for power evacuation from SGTPS towards Katni. 21/420 KV. will comprise three single phase auto transformers rated 166. outdoor type. star-connected primary & secondary windings and open delta-connected. 415 V supply shall be obtained from 11KV/ 6. Four single phase.SGTPS and 220 KV sub-station of MPPTCL at Birsinghpur For evacuation of power from 500 MW extension unit first of all 400 KV SGTPS-Katni-Damoh 400KV DCDS line has been charged at 400 KV along with creation of 400 KV S/s by PGCIL at Damoh. outdoor. Generator Transformers are being used for feeding power to 400KV grid. It is proposed to LILO this 400 KV DCDS line through SGTPS. from SGTPS. To strengthen 220 KV system to absorb power. tertiary windings. It is hoped that above mentioned power evacuation power system along with existing system will be sufficient to evacuate power from SGTPS 4x210 MW and 1x500 MW generating stations. . spaces for 4 nos. A 400 KV DCDS line is proposed between Korba and Bina via Katni. additional bays have also been provided to accommodate feeders of proposed LILO to Birsinghpur through 400 KV Korba – Bina lines. A total of seven bays have been provided for the 400KV Switchyard. uniformly insulated. generated at SGTPS. It is proposed to derive auxiliary power for unit start up/emergency and for station auxiliaries by stepping down from existing 220KV system and/or from proposed 400KV system through 2 Nos. The inter-connecting transformer.
Burner Management System (BMS) with fail-safe cards is a part of DDCMIS. Instrumentation and Controls A Distributed Digital Control and Management Information System (DDCMIS) with CRT / Keyboard operation for SG and TG controls and hard-wired back-up controls with monitoring and controlling devices needed for operation is provided.75 5. prices had been estimated separately.05 2093.2.12.4.1. The above project cost was estimated based on the following :- .2.3.3. 6. Cost Total project cost Cr. For the works not covered in BHEL.M.43 305.1.4. Techno-economic clearance of the project has been granted by CEA vide O. Cost towards overheads/others had been worked out on the basis of scope settled with M/s BHEL and taking into account the requirement of Project. 2/MP/46/96-PAC/11280 – 302 dated 20th Dec. MS-1-01-E-0021.2002.75 Crore as under:Total Estimated Cost Table No. No. For systematic and sequential start-up shutdown and safe operation of Boiler.s scope (Non EPC items). dated 10.93 69. An estimate of the total cost of the Project was prepared on the basis of prices appearing in BHEL.s Commercial offer No.50 1629. Cost of the Project 5. 2093.84 82. Particulars 1 2 3 4 5 6 Land & RR Turnkey cost Non EPC cost Overheads IDC + Fin. 5. 5. 2002 at a total estimated cost of Rs.4.2002 & 11.Rs.
and MPGST and exit tax at the time of actual dispatch be paid extra by MPPGCL. Cost towards Erection. hence price variation over this cost had also been considered. Cost towards Civil works (for the scope settled with BHEL) had been taken as offered by BHEL. This cost being firm no P.V. water. hence price variation on supply prices had also been considered. . New Delhi up to the extent of 80% of the total Project cost. . Supply prices of main equipments/plants were considered as offered by BHEL. hence price variation had also been considered. had therefore been considered on this account. has been considered separately towards these works. the excise duty and central sales tax at the prevailing rates of 16 % and 4 % respectively payable as extra at actual by MPPGCL. MPGST and exit tax at the prevailing rates 16%.6% and 0. Prices towards various insurances were inclusive in the offered prices. and balance 20% shall be arranged by Board. o In case of dispatches from BHEL works except their works located in Bhopal.1% respectively payable as extra at actual by MPPGCL.Financing of the Project shall be arranged through PFC. . The prices being on PVC basis. The prices being on PVC basis. (equivalent to U$ 39.4 million) on exchange rate of 1 U$ = Rs. . 212 Crs. telephone/communication charges etc. Sales Tax & Exit tax as per the description given below:o The supply prices of bought out item indicated by BHEL included the excise duty and concessional sales tax at the then applicable rates of 16 % and 4% respectively on the items directly dispatch-able to site from indigenous sources. The offered prices of BHEL were exclusive or inclusive of Excise Duty. This cost also includes cost of construction power. . CIF value in respect of imported materials had been indicated as Rs. 48. Customs Duty at Project import rate being inclusive in the supply prices. o In case of dispatches from BHEL works at Bhopal. lighting.85 as on March 2002. hence the same had not been considered separately.V. o Any variation in the above rates of excise duty.For the balance Civil works including preliminaries (not covered in BHEL.s scope) cost estimation had been made separately. . . No P. the excise duty. The prices being on PVC basis. Testing & Commissioning had been taken as offered by BHEL. 4. . Cost towards freight charges had been taken as offered by BHEL. hence the same had not been shown separately. central sales tax. .
75 13. Revised Project Cost The estimated approved project cost during Dec.Cost of initial spares had been taken @ 3% of supply cost as the spares have not been offered by BHEL along with their instant offer.Rs.4. Interest during construction had been taken as weighted average rate of 11% for long term loan.50 1629. The various reasons for revision in project cost (above) have been indicated in the earlier petition.1. Land and RR Cost This cost has been revised due to change in scope and rise in prices. 2300 Cr. Cr.84 82.40 269. Particulars Original Revised 1 2 3 4 5 6 Land & RR Turnkey cost Non EPC cost Overheads IDC + Fin.4.93 69.70 1861.. which has been updated to Rs. The breakup of original project cost and revised project cost is as under:Original Project Cost Vs Revised Project Cost Table No. The same are reproduced now. 5. 5. The provision had been made for augmentation of railway track within and outside of power house complex. .4.4.00 2300. 2093.1.1. Cost Total project cost 6. 80% debt & 20% equity financing had been proposed.2. . EPC Cost .44 56.1.00 5.12 99. 5.02 was Rs.05 2093. 5.43 305. and interest incurred during construction period was assumed to be capitalized.1.75 Cr.4.
as per TEC was based on Debt equity Ratio of 80:20 and IDC of Rs. 2300 Cr .1560 Cr. This calls for a debt of Rs. weighted average works out to 11.4. 5. 5.52%.215.5.2093.77 Cr. 5. However estimated provision for price variation has been increased so as to take care of inflation in the price indices of material and labour components as per terms of EPC contract placed in BHEL. The total estimated completed cost of Rs.2300 Cr. Non-EPC Cost Under this cost the major head covered are spares and railway siding.. only.4. Amount towards work contract tax on civil works has been revised downwards due to exercising of option for composition mode as per provisions of Commercial Tax Act 1994. the fund requirement would increase by about Rs.1. It has been increased due to increase in price inflation for spares and change in scope and design of railway-siding during approval by railways. Amount estimated towards taxes & duties on materials purchased have increased due to change in Price Variation amount and imposition of education Cess.2093. Now with the revision in project cost from Rs. Additional provision was required to be made due to imposition of service tax on civil works and erection contracts.4.05Cr.4. As may be seen from the Form 16.3. It has now been revised due to increase in provision towards contingency. to Rs. Overheads This cost was reduced while re-appropriating “The Project Cost Approved as per TEC” to enhance the EPC Cost. IDC & FC This cost was estimated to be less as compared to original provision due to change in rate of interest by M/s PFC from time to time.75 Cr. as against this PFC sanctioned a loan of Rs. The rate was originally stated to be 11% and has changed from time to time.1. however. with RoI as 11% per annum.305.75 Cr.The base EPC cost has remained constant.1. 1675 Cr. The funding arrangement envisaged for the same was as detailed below:1 Total revised Project Cost Rs.
rather than schedule of drawl. 115 Cr It may be seen from the Form 16 that till January 2007computed IDC works out to Rs. As such. This is because of the fact that as per agreed packages with the venders and BHEL a considerable portion payment is to be made on competition of work and closure of contracts. Now. With a view to optimize the project cost.2. humbly submitted to kindly consider the revised project cost as the base for determination of provisional tariff. it is necessary to find expenditure against generation of infirm power viz a viz amount received through infirm power charges so as to ascertain the project cost as on CoD. It is therefore. This will be settled in due course of time and the final reconciliation of project cost including IDC is proposed to be done at the time of determination of Final Tariff.ble Commission within one year of CoD. . 1165 Cr only as sanctioned loan of Rs. 269 Cr..ble Commission vide order dated 18.2008 allowed MPPGCL the recovery of infirm power charges till the CoD of the unit.01. attributable to them. At the same time. Hon. as per Clause 37 of the MPERC (Terms & Conditions for Determination of Generation Tariff) Regulation 2005:“Any revenue other than the recovery of fuel cost earned by the generating company from sale of infirm power shall be taken as reduction in capital cost and shall not be treated as revenue”. 1675 Cr. 2185 Cr Rs. 1560 Cr Rs. MPPGCL has drawn the loan as per the actual progress of the project. At the same time actual drawl of the loan is Rs. 5.47 Cr. for which MPPGCL will submit the petition before Hon. there was a clause in the contract agreement for deduction of Liquidated Damages from BHEL on delay of project. as against the drawl of about 1165 Cr.2 3 4 5 6 7 Equity So far sanctioned by GoMP Equity induced by MPSEB Total Equity so far tied up Funds tied with PFC Total funds tied up Balance Fund Requirement (PFC) Rs. 340. 14 Cr Rs. 1560 Cr and revised requirement of Rs.4. In the revised estimated project cost the estimated IDC is only Rs. 625 Cr Rs. 611 Cr Rs.
07 to 27th Aug.The details of amount recoverable through infirm power charges are as indicated below:S. No Infirm power generated during the period 1st Oct. 39497974 60939217 164325552 607764040 750010430 208528892 463946733 716539105 807896035 775419524 389204364 4984071866 1831066105 3153005761 4984071866 up 113826578 to27/08/2008 Total FY 07-08 FY 08-09 1573837858 682337755 891500103 . .08 Month 1 2 3 4 5 6 7 8 9 10 11 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 INJECTED POWER in KWH 38971854 60127496 162136706 183756285 186119486 51225928 120916605 222207820 237100493 197448607 BILLING AMT in Rs.
27 2307.21 LDO CONS.32 2260. Administrative & General Expenses during Trial Operation Name of site Office 1 2 3 4 5 S.07 390.The expenditure incurred on O&M.64 97. KL 1054.03 1882.E.99 535.02 107. Rs.42 478 214 90 109 36 307 57 LDO RATE KL / Rs.03 1 2 3 4 5 6 7 8 Oct-07 Nov. No.E.59 9.41 Total 2.E.29 675.3 150. 07 Jan-08 Feb.69 17. -07 Dec. KL 3637 2699 1211 572 260 118 1104 371 HFO RATE KL / Rs 22334 25026 24064 29511 29511 28899 28897 28897 HFO COST LAC Rs 812. Fuel Cost during the period MONTH COAL CONS. Administrative and Generation Expenses and Fuel cost are as indicated below:in Rs.81 187.08 177.48 60.(OPN-III) S. Expenses Works 2.9 13.15 638. lakhs S.66 25.52 234.27 HFO CONS. MT COAL RATE Rs.93 145.75 91.42 168. 28249 28344 28344 28788 28788 29869 29868 29868 LDO COST LAC Rs.73 34.86 135.(EMCI) S. 297.45 291.No.38 10./MT 1331 1339 1420 1473 1431 1397 1424 1408 COAL COST LAC.(MM-III) S. Expenditure incurred on O&M.(Services) Total 56.(ET&I) S. 469.98 2463.16 600.E.E. -08 Mar-08 Apr-08 May-08 35248 47650 132558 153447 161227 43002 94802 174948 .10 319.49 23.64 40.31 A&G/Estt.91 31.78 27.80 76.71 46.72 SL.74 1349.
2009 .7817 283 221 447 10923 8497 2426 30328 30328 37126 85.460 3 2803. The 100% value of work in respect of the turnkey contracts placed on BHEL also include the deduction of Rs.82 17844.04 103 70 339 2857.8 863.9 10 11 Jun-08 Jul-08 Aug.77 dtd.6786 9686. As the exiting ash bund is getting exhausted rapidly there appears necessity of a new bund. as has been intimated by MPPGCL vide letter no. the following has been taken into consideration.86 Further subsequent to submission of earlier petition.82 2058. -08 Total FY 0708 FY 0809 10733. The IDC amount has thus increased by about 125 Crore (from estimated amount of Rs.ble MPERC is requested to allow an estimated expenditure of Rs. .8 745. approx.46 8157.46 863.02.95 2803. on account of this separately.64 189813 162864 92625 128818 4 573132 715052 1319 1319 1319 2503.51 137.49 Cr. The delay in completion of the project had direct impact on the fund flow and hence the drawl & the schedule of drawl which ultimately culminated in the enhancement of IDC on the debt drawn.72 17844. 394 Crores).83 67. 158.Hon.04 301. 93.The provisional expenditure till CoD has been estimated as 2275. 93. will be allowed as capital addition based on assessment of the requirement by concerned regulatory authority. which shall be considered as additional capital expenditure.04 Crore made against LD. These deductions towards LD are still to be finally settled.20. a sum of Rs.20 Crores (List of works to be executed after CoD are annexed as Annexure).42 1981.which was deferred saying provision for construction of new ash dyke.18 1221. Thus they shall be considered at the time of finalization of project cost.42 876 32162 32162 40548 33.50 Cr.04 Crores has been retained/ deducted from various claims of BHEL raised by them beyond Dec.86 562. if required at a later date. Earlier the requirement of construction of new ash bund was sought by CEA. 269 Crore to Rs. The value of balance works to be financed is approximately Rs.63 2148.13 22.02 165. for arrival at estimated project cost now:Due to delay in the commissioning & completion of the project by BHEL. 2006 towards Liquidated Damages.
9 TOTAL 253.33 395.9 613.85 .9 91.1.0 459.49 158.85 EXPENDITURE INCL.94 242. The project is funded in the following manner:220.Sanctioned Amount Accordingly.33 395.8 IDC 10. Cr.75 233.23 678.9 301.45 498.4 64.41 277.69 Less Profit from revenue earned through infirm power Provisional expenditure on Fuel + O&M+A&G+Estt during Trial operation Total amount billed for infirm power Revenue earned on A/c of infirm power Provisional project cost as on CoD Funding of Project 6.7 89.8 117. O&M EQUITY DEBT 10. Provisional Estimated Estimated Expenditure value of Project cost till CoD Balance work 2300 2275.1 163.8 146.23 678. PROJECT FUNDING HARD Year 2003-04 Year 2004-05 Year 2005-06 Year 2006-07 Year 2007-08 Year 2008-09 242.1.95 2155.0 101.77 233.2 51.57 371. Amount in Rs.4 303.52 321.57 371.56 270.77 21.21 219.20 2433.21 232.52 321. the estimated project cost considered for the provisional tariff is as indicated below:Rs.62 181.6 19.8 300.73 Funding of 1x500MW Birsinghpur Table 6.Cr.1.3 31.3 TOTAL 253.
MPPGCL humbly submits before Hon. It is considered that full amount of loan is made available by PFC (Rs. within one year of CoD (as per regulations).7 399. 394Cr. 20101011. on provisional basis. MPPGCL submits before Hon.52% and IDC for the period amounts to Rs. there is no amount of grant provided by any agency for this project neither any consumer has extended any contribution.123. the total loan amount drawn for the project is Rs.73 3 2. PFC has sanctioned a loan amounting to Rs.7 393. 1531 Cr).42 212. 6. each drawl of the loan carries specific rate of interest applicable at the date of drawl.ble Commission to permit the same. It has already been elaborated in the previous section that the differences in project cost may be considered at the time of determination of final tariff. as per the available records.9 2040.2.0 2433.73 6.01 1530.654.1.8 1530. The table above elaborates that starting from FY03-04.73 3 399.88 187. which has been estimated as of now Rs.3. The cost of the project estimated during FY 03 as Rs. in view of the profit attained through sale of infirm power.10 1.41 INFIRM P -498. 1531Cr. As per terms of PFC loan.278 Cr.155. weighted average rate of interest works out as 11.Year 2009-10 399. 2094 Cr which has been revised as Rs 2300 Cr. identified with this project are available and have been provided as Form -7 in this petition.41 625.1300Cr.15 -498. The details of PFC loan.1560 Cr.3. The working has been elaborated in Form 16. 6. Thus the balance amount can be reasonably considered as equity contribution. Considering drawls till CoD amounting to Rs. vide No.ble Commission to consider project cost as Rs. . 2156 Cr. This shall be revised subsequently as soon as the Project Cost shall be finalized. Based on the available details. Further.88 2.
as per Hon'ble Commission.5. equity contribution is about 29% and is well within the specified norms of 30%.00 Rs. 4. MPPGCL. 1531 Cr. It is obvious from the above that.Rs. 6.6. Weighted average rate of interest … 11. Sanctioned amount : Rs. Sanctioned Date : 2nd May 2003 3. Major terms of loan of PFC loan are 1. 2005 (G-26 of 2005)" has therefore. 6.4. Considering these terms interest and repayment liability works out as under :Interest & Finance Charges Table No. 1531 625 2156 % 71% 29% 100% 6.6.1 . with the present level of cost estimates.Particulars Loan Equity Project Cost Cr. considered the return on equity @ 14%.00 . Number of installments … 40 Nos.52% 6.s regulation "MPERC (Terms and Conditions of Generation Tariff) Regulations. 2. In Cr FY 09 1531. Repayment period … 10 years 5. Particulars 1 2 3 Opening Balance Number of Installments Due Repayment (Principal) 0 0.
in "MPERC (Terms and Conditions of Generation Tariff) Regulations.2.6 has mentioned that the norms of operation applicable for a new thermal generating unit Commissioned after 1. S. 7. Guarantee amount Interest + Govt Guarantee 1531.1.ble Commission.4 5 6 7 8 9 Closing Balance Average Interest Rate Interest Amount Govt.87 0.00% 0.00 102. 2005 (G-26 of 2005)" vide its Clause 3.52% 102.00 11.87 10 Total Liability (Principal + Interest) 102. 1 Particulars Ceiling Norm 80 Target availability for recovery of full capacity charges (%) .2006 shall be as per the CERC regulation of year 2004.87 The Principles/Norms of Operation 7.2 Accordingly as per clause 16 of aforesaid CERC regulation based on the capacity of the unit following norms has been considered for the purpose of determination of the tariff: Tariff Norms Table No. Guarantee Rate Govt. No.04. 7.1 Hon.
e.00% 4 Secondary fuel oil Consumption (ml/Unit) Aux Consumption with Steam driven BFP & with out Cooling tower (%) During Stabilization Subsequent Period 5 During Stabilization Subsequent Period While the unit has achieved CoD during Aug 2008 (i.2006) stabilization period & relaxed norms has been considered. It is therefore requested that it may be permitted to consider stabilization period & relaxed norms beyond 1. Unit at SGTPS. .00 7.2006. Birsinghpur is the first 500 MW unit of MPPGCL.4. This is in view of the fact that the 1x500 MW Extn. The petition has been prepared on the basis of the above. later to 1.04. The persons are still required to gain experience in operation.2 3 Target PLF for Incentive (%) Heat rate (Kcal/Unit) During Stabilization Subsequent Period 80 2550 2450 4.50 2.50% 7.
26/03/2004 shall be applicable. For generating units /stations commissioned after 01/04/2006.5. operated by MPPGCL. O&M CHARGES 9. Fee to MPERC 8. for existing capacity. namely.1. Return on equity 8.1.4. tariff for sale of electricity from a thermal power generating station comprises of two parts.2. it has also been approved by Hon'ble Commission to permit O&M charges in clause 38 as under: 8. 2005 (G-26 of 2005)" has approved the rate for O&M charges for thermal and hydro stations for FY 07 to FY 09.The Annual Capacity Charges 8. For the new capacity.27 Normative O&M expenses allowed at the commencement of the tariff period shall be escalated at the prevailing rates of inflation for the year as notified by the central government and shall be considered as a weighed average of whole sale price index and consumer price index in the ratio of 60:40 respectively.6. 2005 (G-26 of 2005)". in pursuance with "MPERC (Terms and Conditions of Generation Tariff) Regulations. Interest on working capital Detailed working of the Interest and Finance charges on loan capital has been elaborated in the foregoing section on “Funding of the project”.ble Commission.” “2. 9. principles and norms for O&M as prescribed by CERC vide its order dt. .3. “38.2. 8.2. Interest on loan capital 8. As mentioned earlier.2. the recovery of annual capacity (fixed) charges and energy (variable) charges. Working on remaining charges as per the aforesaid regulation is described in the following sections. The annual capacity (fixed) charges consists of :8. in "MPERC (Terms and Conditions of Generation Tariff) Regulations.188.8.131.52. Hon. Depreciation including advance against depreciation 8.2.3. Operation and maintenance expenses 8.1.
namely: a) Coal-based generating stations except Talcher Thermal Power Station and Tanda Thermal Power Station of National Thermal Power Cooperation Ltd (Rs. 9.Lakh/MW) 200/210/250 MW sets 11. This in turn reflects reduction of O&M charges for the first year on proportionate basis.25 11.4. It is prudent to mention that the plant shall be under O&M for 7 months. Particulars Capacity of Plant MW 500.95 Year 2006-07 2007-08 2008-09 As per "MPERC (Terms and Conditions of Generation Tariff) Regulations.12 10. The table below elaborates determination of O&M charges for FY 09.70 12.For the first tariff period inflation had been allowed at 6%” 9.27).3.52 10. as it is having its CoD during Aug 2008. 2005 (G-26 of 2005)" clause 25(2.17 500 MW and above Sets 10. O&M Charges Table No.00 FY 09 . Accordingly O&M charges have been computed and tabulated in the table below. the inflation rate has been considered as 6%. though is likely to generate almost 80% of design energy.4.1.26/03/2004 clause 21(iv): “Normative operation and maintenance expenses shall be as follows. 9. As per CERC order dt.
Rate of O&M Charges Months of Operation Amount of O&M Charges Units Sent Out Rate of O&M Charges 9. .64 1920 18 It is humbly requested before Hon.ble Commission to kindly permit the same.Rs MU p/u 11. L Rs/MW No Cr.5.37 7 33.
as per "MPERC (Terms and Conditions of Generation Tariff) Regulations. also become academic. Depreciation shall be chargeable on historical cost of project on straight line method. 10. It is obvious from the table below that – 10. enabling MPPGCL to ensure repayment of principal amount.1. 10. 2005 (G-26 of 2005)" has specified the principles of charging depreciation. It is prudent to mention that advance against depreciation is also applicable for the project and the same has also been claimed for the project.1. humbly submitted to kindly consider the same. Further.4. 10.Thus the effective rate of depreciation. It is therefore.1.4. in no case repayment requirement shall be more than 1/10th of the loan during the year.2. The rate of depreciation shall be weighted average rates based on element wise rate specified in Annexure I of "MPERC (Terms and Conditions of Generation Tariff) Regulations. till advance against depreciation is claimed. thus the rate of depreciation in the initial years. 2005 (G-26 of 2005)".1. PFC loan has repayment period of 10 years and loan is to be repaid in equal installments.27%. The repayment/cumulative repayment during FY 09 are lower than 10.85% has been considered. on annual basis works out to 2. Advance Against Depreciation (AAD) is also permissible if the available cumulative depreciation up to the year is lower than the cumulative repayment till the year. 10. 10. Depreciation shall be charged till cumulative depreciation reaches to the ceiling limit of 90%. Further ceiling of depreciation shall be 1/10th of the loan less depreciation for the year. Primarily they are – 10.1.2. Thus. In the instant case.5. In the instant case. the project cost has not been finalized and hence it will be redundant to determine the weighted average rate of depreciation for this project based on cost elements. 10. MPPGCL has considered the project operative for 216 days during FY 09.3.1. 10. The principles of Company Act are applicable and the depreciation canbe charged for the proportionate number of days during first year of its operation when the project is available for part of the year.1. Hon.184.108.40.206. for the purpose of computing depreciation. a consolidated rate of 3.DEPRECIATION 10. .ble Commission in its regulation "MPERC (Terms and Conditions of Generation Tariff) Regulations. 2005 (G-26 of 2005)" .
27% 2156.Rs Cr.00 FY 09 7 10.5.Rs Cr.85% 2.6. Against Depreciation Required No % % % Cr.00 0. 10.Rs Cr.00 0.12 49.12 0. .Rs Cr. Depreciation and Advance Against Depreciation Table No.Rs Cr. humbly requested to kindly permit depreciation as detailed in the table above.1.Rs 3.2.27% 2. It is therefore.depreciation and cumulative depreciation requirements. Particulars Months of Operation Annual Depreciation Rate Effective Depreciation Rate for Year Cumulative Depreciation Project Cost Depreciation Amount Cum Depreciation Amount Loan Repayment Cum Loan Repayment Adv.00 49.
62 FY 09 . 625 Cr. 2005 (G-26 of 2005)" MPPGCL is eligible to have 14% post tax return on equity.Rs % Cr. In case. Since the equity of the project is about 29%.00 29% 14% 216 51. As per "MPERC (Terms and Conditions of Generation Tariff) Regulations. Tax @11.RETURN ON EQUITY & TAXES 11.78 51. 1531 Cr.33% has been considered. Return on Equity Table No.1 Particulars Equity Amount Equity Amount as % of Project Cost Rate of Return Days of Operation Return on Equity Return Amount Rate of MAT Amount of MAT Cr.78 11.) is funded by about 29% equity (Rs. Considering this RoE (proportionately for the period of operation in respective years) works out as under :- 11. It has already been elaborated in the foregoing Para that the project cost (Rs.1. 2156Cr.33% 06. Min. Present level of corporate tax is 30% and applicable surcharges thereon.Rs % % No Cr. MPPGCL become liable to pay any other type of tax /surcharge on RoE.). full amount of the project is eligible for RoE.) and balance 71% through loan (Rs.Rs 625. Alt.Rs Cr.2. It has also been assumed that a tax holiday shall be available to the project for initial 5 years. 11. the same shall be chargeable separately.2.
2.17 FY 09 VARIABLE CHARGES .62 6.Hon.Rs Cr.75%) 12.Interest rate consider is PLR +1%. .81 174. Interest on working capital has been determined on the Working capital elements determined in pursuance with the norms as approved by Hon'ble Commission in "MPERC (Terms and Conditions of Generation Tariff) Regulations.Rs No % Cr. .. Based on above norms the year wise working capital and interest on working capital works out as under: Working Capital Requirement and Interest there on Table No.Rs Cr.56 81.Operation and Maintenance Expenditure 30 Days -. .75% 15.2.ble commission has permitted inflation of 6% per year from the date of Commercial operation. 2005 (G-26 of 2005)".Rs Cr.1 Particulars 1 2 3 4 5 6 7 8 9 Coal Stock (60 Days) Secondary Oil Stock (60 Days) O&M Charges (30 Days) Maintenance Spares (1% of Project Cost) Receivables (2 Months) Working Capital Required Days of Operation Interest Rate Interest on Working Cap. Maintenance spares @ 1% of historical cost.Interest on Working Capital 12. (taken as 13.Rs Cr.75%+1%= 14.Receivable for two months .Rs 59. as elaborated below: .1.59 4.24 216 14. . 12.Rs Cr. Fuel charges 60 Days -.67 21. Cr. In draft terms and conditions.
probably. With a view to move along with the trends of technology. taxes and duties as applicable. in this case a little relaxation of the performance parameters is necessary. It is prudent to mention that the plant shall be under O&M for 7 months. It is humbly requested to kindly permit the same. any other means and considering normative transit and handling losses as percentage of the quantity of the coal required. . the variable charges for the first year re little more. Due to relaxed norms of the operation considered for initial six months of operation. 13. transportation cost by rail/road. the provision has been withdrawn.Accordingly Variable charges have been computed and tabulated in the table below. Variable Charges cover cost of primary and secondary fuel. as it is having its CoD during 28th Aug 2008. MPPGCL has ventured into installation of 500 MW Unit as against 210 MW units originally planned and traditionally accepted. The cost of secondary fuel has been arrived at considering norms of operation as per clause 36 of the MPERC Regulation – Terms and Conditions for determination of Generation Tariff.1 13. Thus. considering adequacy of experience on technological improvements.3 .2. The landed cost of the coal includes price of the coal corresponding to the grade/quality of the coal inclusive of royalty. In case of CERC. It is submitted that the plant is first 500 MW unit of MPPGCL and till date MPPGCL has no experience of 500 MW. The table below elaborates determination of O&M charges for FY 08 to FY 09.13. .
13.3.80% 1380 214.71 12 238.Rs p/u 13. Aux Net Sale CV of Coal Heat Rate Sp Oil Consumption Specific Coal Consumption Transit & Handling Loss Rate of Coal Particulars MW No.1.ble Commission to kindly permit the same.50% 1920 3350 2550 4. % MU % MU K Cal/kg K Cal/kWHr ml/kWHr kg/kWHr % Rs/MT Cr.Rs Cost of Coal 2008-09 500 216 80% 2074 7. .Variable Charges Table No. It is humbly requested before Hon. 1 2 3 4 5 6 7 8 9 10 11 12 13 Capacity For Effective Days PUF Gross Gen.4.50 0. Sl.33 124 14 15 16 Rate of Secondary Oil Cost of Secondary Oil p/u Rs/kL Cr.63 112 28000 23.75 0.Rs 17 18 19 Fuel Cost p/u Cr. No.
till the policy regarding payment of pension and terminal benefits is finalized.ble Commission in the philosophy for bench marking of O&M charges vide its draft terms and conditions for determination of generation and transmission tariff has excluded the amount of pension payments and terminal benefits to be paid to the employees from O&M charges. 14. Provision for Bad and Doubtful Debts The company has just started its functioning and hence the risk associated andtrends are not available. As per the existing arrangement. MPPGCL humbly submits before Hon'ble Commission topermit the same. the provision is not considered at this stage. MPERC Fee Hon. if any at the time of finalization of project cost at a subsequent stage.3.ble Commission has specified fee for Thermal station as Rs.1. these expenses are to be paid by Transco. It has been mentioned that the write offs may be considered at the time of truing up. prior period charges and miscellaneous write-offs etc. Accordingly while determining the O&M charges these expenses have been excluded from O&M charges. 14.2. however. with a view to cover-up such associated risks a provision of about 1% of closing amount of receivables was provided as provision for bad debt. Terminal Benefits and Pension Payment Hon. In the tariff petition submitted by MPPGCL (dated 23rd Jan 06) for determination of tariff of existing plants. In the Tariff order for FY 06 (Dated 25th Jan 06). 14. Accordingly no amount has been considered in this petition. are covered under this head. 5000 / MW or part thereof for full year. MPPGCL will approach Hon'ble Commission when such policy is approved at a subsequent stage. The other expenses like provision for bad debt. Thus.Other Expenses 14. MPPGCL humbly submits before Hon'ble Commission to permit the same.4. Accordingly the fee for the plant for FY . Hon'ble Commission has not considered the same mentioning that the company has not formulated any policy for writing-off of bad debts.
09) works out to Rs.08 to Mar.for FY 09. It is humbly requested before Hon.58. 14.09(Sep.ble Commission to kindly permit the same. .333/.
1 Particulars 1 2 3 4 5 6 7 Capacity of Plant PUF For effective Days Gross Generation Auxiliary Consumption Transformation Loss Net Generation MW % 216 MU % % MU 500 80% 4 2035 7.00% 1920 FY 09 .2. During first year the actual generation will be for around 216 days only. 15. The targeted Plant Load Factor and Auxiliary Consumption have been considered as per "MPERC (Terms and Conditions of Generation Tariff) Regulations.2.GENERATION 15. Installed capacity of the new additional Birsinghpur Unit is 500 MW. The table below elaborates possible generation from the station. 2005 (G-26 of 2005)". Generation Table No. considered for the purpose of determination of tariff:- 15.1.50% 0.
1.Rs p/u Total Cr. which shall be considered later on the basis of actual performance. thermal power stations are eligible for recovery of variable as well as fixed charges. Accordingly.Rs Cr. 16.87 51.1.05 FY 09 .78 0.Rs.33 124 491. Particulars Net Generation Depreciation Interest on Loan Return on Equity Advance Against Depreciation Interest on Working Capital MPERC Fee O&M Expenses Total Fixed Cost Variable Charges MU Cr. Cr. 2005 (G26 of 2005)" with relaxed norms for initial six months of operation and tabulated below:- Generation Cost Table No 16.2. the cost elements have been computed in pursuance with "MPERC (Terms and Conditions of Generation Tariff) Regulations.72 238. The station shall also be eligible for incentive on the rate specified in the above regulation.Rs. 2005 (G-26 of 2005)". In pursuance with "MPERC (Terms and Conditions of Generation Tariff) Regulations.Rs Cr.Rs Cr.Rs Cr.Rs Cr.15 33. Cr. The recovery of full fixed charges is permissible at target availability and below it on prorate basis in equal monthly installments.Rs Cr.64 252.GENERATION COST & BILLING 16.2.12 102.17 0.Rs 1920 49.00 15.
Thus MPPGCL shall be Billing to MP TRADECO as under: i.ble MPERC that the actual performance of the unit is far below the target parameters in respect of PLF (60-65%) & Station Heat Rate (3000-3050 Kcal/ Kwh). The specific reason for not achieving the target PLF is due to the shortage of coal. Incentive @ 25 p/u as per "MPERC (Terms and Conditions of Generation Tariff) Regulations.Rs Cr. The availability if coal is beyond control of MPPGCL. policy or otherwise. Water Charges. at the rates specified by GoMP. Adjustment on account of over/ under achievement of Plant Availability Factor and price of fuel. as already intimated vide this office letter no. due to change in Govt. as payable on the project shall also be chargeable extra on actual basis. Hon. Fixed charges in equal monthly installment basis. Variable cost as per monthly generation on the rates specified above ii. While Petition has been prepared considering target parameters.2009. .2. Similarly. Taxes including fringe benefit tax. In case.14)" v. shall be chargeable extra. However. this shall impact MPPGCL adversely by way of deduction in fixed as well as the variable charges. 2005 (G-26 of 2005)" and any other tax if payable on actual basis. Fringe benefit tax etc. MPPGCL has also considered tax holiday during initial five years of operation of the plant and has not loaded any incidence of the same. 16.67 259 16.52 dtd. iii. if any liability of tax (except on incentive of additional profit over and above RoE) arises.3. Water Charges are payable to Govt.5. this is to bring to kind notice of Hon. the same shall be charged extra.Rs p/u 256 06.Indicative Average Rate Amount Charged as MAT Total + Taxes Indicative Average Rate p/u Cr. 2005 (G-26 of 2005-Clause 433. MPPGCL shall provide facts in this regard subsequently. iv.62 497.ble MPERC is requested to kindly consider the impact of factors beyond control of the utility and permit the recovery of full charges at actual parameters.4. admissible Income tax as per "MPERC (Terms and Conditions of Generation Tariff) Regulations.
P&L Account shall be as under :- Projected Profit & Loss Account Table No 17.33 33. expected profit and liquidity. Interest Cost Intt on Work. Against Dep. at CoD in full) for computing projected balance sheet.1. The Financial Statements are important for assessing the financial health of the project.1.67 238.33 252.65 49. Considering the assumption.54 6 7 8 9 10 11 12 13 Operating Profit .Rs.13 58.62 497. it will not be worthwhile to draw the balance sheets and cash flow statements prior to CoD. Fuel O&M Charges Depreciation Adv.17 439.87 15.00 102. Particulars FY-09 238.1 Amount in Cr.72 2 3 4 5 Income 1 Energy Charges Capacity Charges Incentive Tax Total Operating Exp. However the effect of cash drawl and asset capitalization prior to CoD has been considered at one point of time (i.12 0.e. Cap Total 06.Financial Statements 17. Since the project has just been commissioned.
24 0.2.97 497.00 624.73 174.67 138.99 1530.70) 49.00 58.Rs FY-09 .24 0.1 Particulars 1 2 3 4 5 6 7 8 9 10 11 12 Operating Income Before Tax Loan Opening Cash Balances Capital Addition Secured Unsecured (for W/C) Creditor Total Income Accrued Less Bill Receivables Add Prev.12 Amount in Cr.2.93 17.00 439.54 06.13 (79.62 51. Projected Cash flow statement shall be as under :Projected Cash Flow Statement Table No 17.00 1704.14 15 16 17 Other Debits Profit Before Tax Income Tax Profit After Tax 0. Yr Bills Received Less Operating Expenses Net Income Before Tax Depreciation (Add Back) 0.
34 12% 44.38 92.72 2155.66 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . Rs. Closing Cash & Bank Balances 2299.38 2155.72 6.62 6.62 2162.13 14 Total Cash Available Purchase of Assets Assets Security Deposit Advance Payments Total Repayment of Loan Secured Unsecured (for W/C) Creditor Total Income Tax Tax Other Tax Total Total Dividend As % of RoE Cr.
55 632.155.66 2.73 2337.51 624.99 07.24 92.54 174.1 Amount in Cr.12 2.72 49.337. Projected Balance sheet of the company shall be as under :- Projected Balance Sheet Table No 17.106. Profit After Tax Total Loans & Advances (Deposits) FY-09 2.51 Assets Fixed Assets Gross Fixed Assets Addition During Yr Less Depreciation Net Fixed Assets Loans & Advances Advance Payments Total Liability .3. Particulars 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Working Capital Loan Secured Loans Current Liabilities (Creditors) Total Bills Receivables Cash & Bank Balances Total Capital Equity Acc.Rs.24 15220.127.116.11 138.
Accordingly the same has been derived in the Form 14 and a summary of the same is listed below:- Ratio Analysis Table No 18.104.22.168 Particulars 1 2 3 4 5 6 7 8 Debt Service Coverage Ratio Debt Equity Ratio Fixed Assets to Proprietor's Fund Fixed Assets to Funded Debt Profitability Ratio Return on Investment Interest Coverage Ratio (Times) Fixed Asset Turnover Ratio (Times) FY-09 1.04 0. Ratio analysis of the project at the end of financial year is a vital tool for financial experts for assessing the health of the project.87 71 : 29 333% 138% 10% 8% 2.4.24 .
All efforts have been made to recast the forms in the shape easily understandable by an average user adequately disclosing all available information. In any case truing up of the information submitted will be done at a subsequent stage and hence MPPGCL do not consider it appropriate to provisionally allocate the cost into various account codes. 2005 (G-26 of 2005)" has specified the terms and condition for determination of tariff from Thermal Electric Plants and the petition is based on the norms specified therein.2. CERC formats are designed for the stations having multiple trenches of loans from different agencies in different currencies. 18.1. However. MPPGCL has also made efforts to fill the formats as specified by CERC. It has however filled in the necessary forms necessary for determination of generation cost for this project.1. Therefore providing number of blank rows and columns in the formats will unnecessary complicate the disclosure of information. However in this case all the loans are in Indian rupee from PFC only. 18.3. Hon'ble Commission in its "MPERC (Terms and Conditions of Generation Tariff) Regulations.1. MPPGCL further submits that in case any additional information in the format specified by Hon'ble Commission is required to be made available along with . As regard to the formats prescribed for submission of tariff petition. 18. it is to mention that Hon'ble Commission has specified the formats which are applicable for installed capacity as a whole and therefore for providing information in the instant case some modification of the format is necessary.1. 18.2. The depreciation is therefore charged on consolidated rate basis giving due justification for the same.3. In the instant case the project cost is submitted on provisional basis duly elaborating the cost breakups. following limitations have been experienced. 18. Considering the fact MPPGCL has not provided the forms exactly in the formats of CERC for which no information can be made available. While filling these formats. it could not be broken into different account codes because capitalization of the same is awaited.1. CERC formats are primarily designed for determination of tariff when project cost is fully ascertained on various account codes.Tariff Formats 18.
18. .4. MPPGCL will provide the same in the format specified by Hon'ble Commission.this petition. It is humbly requested to kindly consider the information provided in the formats annexed.
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