Petition of the CERC (Conduct of Business) and (Terms and Conditions of Tariff) Regulations for Truing up and determination of the transmission tariff for Central Part of Northern Grid Part-I – EQ
Summary:
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## 1. PETITION OVERVIEW
**Purpose**:
1. **Truing-up** of transmission tariff for **2019-24 period** (2019 Tariff Regulations)
2. **Determination** of transmission tariff for **2024-29 period** (2024 Tariff Regulations)
**Assets Covered**: Combined Assets under *”765 kV System for Central Part of Northern Grid Part-I”*
| **Asset No.** | **Description** | **COD** |
|————–|—————-|———|
| Asset-1 | 765 kV S/C Moga – Bhiwani Transmission Line | 16.01.2013 |
| Asset-2 | 765 kV S/C Jatikalan – Bhiwani Transmission Line | 16.01.2013 |
| Asset-3 | LILO of both circuits of 400 kV D/C Bamnauli – Mundka/Bawana at Jatikalan 765/400 kV S/s | 16.01.2013 |
| **Combined Assets** | All assets pooled for tariff purpose w.e.f. 01.04.2019 | – |
**Investment Approval**:
– **Original IA**: 20.09.2009 – ₹1,34,732 lakh (IDC: ₹10,270 lakh)
– **RCE**: 22.07.2016 – ₹1,33,453 lakh (IDC: ₹15,790 lakh) – Feb 2016 price level
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## 2. TRUING-UP: 2019-24 TARIFF PERIOD
### 2.1 Capital Cost & Additional Capital Expenditure (ACE)
| **Particulars** | **Amount (₹ in lakh)** |
|—————–|————————|
| Opening Capital Cost as on 01.04.2019 | **1,32,682.46** |
| ACE claimed during 2019-24 | Nil |
| ACE **allowed** after true-up | **Nil** |
| Closing Capital Cost as on 31.03.2024 | **1,32,682.46** |
✅ Opening capital cost as approved in Petition No. 710/TT/2020 (10.01.2022) upheld
### 2.2 Debt-Equity Ratio (Regulation 18, 2019 Tariff Regulations)
| **Funding** | **As on 01.04.2019** | **%** | **As on 31.03.2024** | **%** |
|————|———————-|——-|———————-|——-|
| Debt | ₹92,877.72 lakh | 70% | ₹92,877.72 lakh | 70% |
| Equity | ₹39,804.74 lakh | 30% | ₹39,804.74 lakh | 30% |
| **Total** | **₹1,32,682.46 lakh** | **100%** | **₹1,32,682.46 lakh** | **100%** |
### 2.3 Depreciation Allowed (₹ in lakh)
| **Particulars** | **2019-20** | **2020-21** | **2021-22** | **2022-23** | **2023-24** |
|—————–|————|————|————|————|————|
| WAROD | 5.28% | 5.28% | 5.28% | 5.28% | 5.28% |
| **Depreciation Allowed** | **7,005.63** | **7,005.63** | **7,005.63** | **7,005.63** | **7,005.63** |
| *Vide Order 10.01.2022* | *7,010.39* | *7,018.83* | *7,022.53* | *7,022.53* | *7,022.53* |
| **Variation (Refund)** | **(4.76)** | **(13.20)** | **(16.90)** | **(16.90)** | **(16.90)** |
### 2.4 Interest on Loan (IoL) Allowed (₹ in lakh)
| **Particulars** | **2019-20** | **2020-21** | **2021-22** | **2022-23** | **2023-24** |
|—————–|————|————|————|————|————|
| WAROI | 8.8713% | 8.7904% | 8.7703% | 8.8109% | 8.8746% |
| **IoL Allowed** | **4,135.77** | **3,482.21** | **2,859.85** | **2,255.82** | **1,650.40** |
| *Vide Order 10.01.2022* | *4,149.56* | *3,535.74* | *2,915.56* | *2,290.90* | *1,666.32* |
| **Variation (Refund)** | **(13.79)** | **(53.53)** | **(55.71)** | **(35.08)** | **(15.92)** |
### 2.5 Return on Equity (RoE) – MAT Rate True-up
| **Particulars** | **2019-20** | **2020-21** | **2021-22** | **2022-23** | **2023-24** |
|—————–|————|————|————|————|————|
| Base RoE Rate | 15.500% | 15.500% | 15.500% | 15.500% | 15.500% |
| MAT Rate (incl. surcharge & cess) | 17.472% | 17.472% | 17.472% | 17.472% | 17.472% |
| **Grossed-up RoE Rate** | **18.782%** | **18.782%** | **18.782%** | **18.782%** | **18.782%** |
| **RoE Allowed (₹ lakh)** | **7,476.13** | **7,476.13** | **7,476.13** | **7,476.13** | **7,476.13** |
| *Vide Order 10.01.2022* | *7,481.19* | *7,490.21* | *7,494.15* | *7,494.15* | *7,494.15* |
| **Variation (Refund)** | **(5.06)** | **(14.08)** | **(18.02)** | **(18.02)** | **(18.02)** |
✅ **MAT rate notification** to be considered for true-up
✅ Penalty on income tax **not admissible** for grossing up
✅ Interest on additional tax demand – **admissible** on actual payment basis
### 2.6 O&M Expenses – Normative (₹ in lakh)
| **Particulars** | **2019-20** | **2020-21** | **2021-22** | **2022-23** | **2023-24** |
|—————–|————|————|————|————|————|
| **O&M Allowed (Normative)** | **679.96** | **703.38** | **728.58** | **753.81** | **780.81** |
| *Claimed by Petitioner* | *679.97* | *703.38* | *728.59* | *753.82* | *780.81* |
| **Variation** | **(0.01)** | **0.00** | **(0.01)** | **(0.01)** | **0.00** |
✅ O&M strictly as per **Regulation 36(3)(a)** norms – S/C & D/C bundled conductor rates applied
### 2.7 Interest on Working Capital (IWC) – Allowed (₹ in lakh)
| **Particulars** | **2019-20** | **2020-21** | **2021-22** | **2022-23** | **2023-24** |
|—————–|————|————|————|————|————|
| RoI (SBI 1-Yr MCLR + 350 bps) | 12.05% | 11.25% | 10.50% | 10.50% | 12.00% |
| **IWC Allowed** | **309.61** | **281.28** | **255.07** | **248.11** | **275.46** |
| *Claimed by Petitioner* | *309.61* | *281.28* | *255.08* | *248.11* | *275.46* |
| *Vide Order 10.01.2022* | *309.96* | *282.42* | *256.26* | *249.03* | *241.24* |
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## 3. TRUED-UP ANNUAL FIXED CHARGES (AFC) – 2019-24
### 3.1 Summary – AFC Allowed (₹ in lakh)
| **Component** | **2019-20** | **2020-21** | **2021-22** | **2022-23** | **2023-24** |
|————–|————|————|————|————|————|
| Depreciation | 7,005.63 | 7,005.63 | 7,005.63 | 7,005.63 | 7,005.63 |
| Interest on Loan | 4,135.77 | 3,482.21 | 2,859.85 | 2,255.82 | 1,650.40 |
| Return on Equity | 7,476.13 | 7,476.13 | 7,476.13 | 7,476.13 | 7,476.13 |
| Interest on WC | 309.61 | 281.28 | 255.07 | 248.11 | 275.46 |
| O&M Expenses | 679.96 | 703.38 | 728.58 | 753.81 | 780.81 |
| **Total AFC** | **19,607.10** | **18,948.63** | **18,325.26** | **17,739.50** | **17,188.43** |
| *Vide Order 10.01.2022* | *19,631.06* | *19,030.58* | *18,417.09* | *17,810.43* | *17,205.06* |
| **Net Refund to Beneficiaries** | **(23.96)** | **(81.95)** | **(91.83)** | **(70.93)** | **(16.63)** |
✅ **Total Refund for 2019-24**: **₹2,85.30 lakh** (approx.)
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## 4. TARIFF DETERMINATION – 2024-29 PERIOD
### 4.1 Capital Cost & ACE Allowed
| **Particulars** | **Amount (₹ in lakh)** | **Regulation** |
|—————–|————————|—————-|
| Opening Capital Cost as on 01.04.2024 | **1,32,682.46** | Reg 19(3)(a) |
| **ACE claimed (2024-25)** – Undischarged liability (M/s Spic SMO, Aster, L&T) | **260.00** | Reg 25(1)(d) |
| **ACE Allowed** | **✅ 260.00** | – |
| Closing Capital Cost as on 31.03.2029 | **1,32,942.46** | – |
✅ Liability payment schedule: ₹260 lakh discharged in FY 2024-25
### 4.2 Debt-Equity Ratio (2024-29)
| **Funding** | **As on 01.04.2024** | **%** | **ACE** | **As on 31.03.2029** | **%** |
|————|———————-|——-|——–|———————-|——-|
| Debt | ₹92,877.72 lakh | 70% | ₹182.00 | ₹93,059.72 lakh | 70% |
| Equity | ₹39,804.74 lakh | 30% | ₹78.00 | ₹39,882.74 lakh | 30% |
| **Total** | **₹1,32,682.46 lakh** | **100%** | **₹260.00** | **₹1,32,942.46 lakh** | **100%** |
### 4.3 Depreciation – Spreading Mechanism Applied
| **Particulars** | **2024-25** | **2025-26** | **2026-27** | **2027-28** | **2028-29** |
|—————–|————|————|————|————|————|
| Useful life elapsed (years) | 11 | 12 | 13 | 14 | 15 |
| Balance useful life (years) | 24 | 23 | 22 | 21 | 20 |
| Depreciable Value as on 01.04.2025 | ₹34,735.11 lakh | – | – | – | – |
| **Spreading applied** | – | **Yes** | **Yes** | **Yes** | **Yes** |
| WAROD | 5.28% | – Spreading – | – Spreading – | – Spreading – | – Spreading – |
| **Depreciation Allowed (₹ lakh)** | **7,012.50** | **1,515.31** | **1,515.31** | **1,515.31** | **1,515.31** |
✅ **Key Change**: Post completion of 12 years life (31.03.2025), remaining depreciable value spread over balance useful life as per Reg 33(5)
### 4.4 Interest on Loan (IoL) – 2024-29 (₹ in lakh)
| **Particulars** | **2024-25** | **2025-26** | **2026-27** | **2027-28** | **2028-29** |
|—————–|————|————|————|————|————|
| WAROI | 8.8792% | 8.8839% | 8.8711% | 8.9749% | 9.2508% |
| **IoL Allowed** | **1,036.99** | **666.82** | **531.44** | **401.66** | **273.83** |
| *Claimed by Petitioner* | *1,036.99* | *666.82* | *531.44* | *401.66* | *273.83* |
✅ Floating rate variation – to be trued-up at end of tariff period
### 4.5 Return on Equity (RoE) – 2024-29 (₹ in lakh)
| **Particulars** | **2024-25** | **2025-26** | **2026-27** | **2027-28** | **2028-29** |
|—————–|————|————|————|————|————|
| Base RoE Rate | 15.500% | 15.500% | 15.500% | 15.500% | 15.500% |
| MAT Rate (assumed) | 17.472% | 17.472% | 17.472% | 17.472% | 17.472% |
| Grossed-up RoE Rate | 18.782% | 18.782% | 18.782% | 18.782% | 18.782% |
| **RoE Allowed** | **7,483.45** | **7,490.78** | **7,490.78** | **7,490.78** | **7,490.78** |
✅ MAT rate to be trued-up annually based on actual tax paid
### 4.6 O&M Expenses – 2024-29 (Normative – ₹ in lakh)
| **Asset Component** | **Length (km)** | **Norm (₹ lakh/km)** | **2024-25** | **2025-26** | **2026-27** | **2027-28** | **2028-29** |
|——————–|—————-|———————-|————|————|————|————|————|
| **S/C Quad Line** | 878 km | 0.738 → 0.905 | 647.96 | 681.33 | 717.33 | 755.08 | 794.59 |
| **D/C Quad Line** | 12.91 km | 1.291 → 1.585 | 16.67 | 17.54 | 18.46 | 19.44 | 20.46 |
| **Total O&M Allowed** | – | – | **664.63** | **698.87** | **735.79** | **774.52** | **815.05** |
| *Claimed by Petitioner* | – | – | *664.63* | *698.87* | *735.79* | *774.52* | *815.06* |
✅ O&M strictly as per **Regulation 36(3)(a)** norms – no deviation
### 4.7 Interest on Working Capital (IWC) – 2024-29
| **Particulars** | **2024-25** | **2025-26** | **2026-27** | **2027-28** | **2028-29** |
|—————–|————|————|————|————|————|
| RoI (SBI 1-Yr MCLR + 325 bps) | 11.90% | 11.90% | 11.90% | 11.90% | 11.90% |
| **IWC Allowed (₹ lakh)** | **259.91** | **174.13** | **173.70** | **173.02** | **173.28** |
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