revised petition for approval of final generation tariff
TRANSCRIPT
Revised Petition for Approval
of
Final Generation Tariff
of
Shri Singaji Thermal Power Project
(SSTPP-Stage-I, Unit No.1&2 (2x600MW))
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
2
TABLE OF CONTENTS
S. No. PARTICULARS Page No.
I REVISED FINAL TARIFF PETITION 3-14
II PRAYER 15
III AFFIDAVIT 16-17
IV AUTHORIZATION 18
1 INTRODUCTION OF 2X600MW SSTPP STAGE-I , KHANDWA
19-28
2 PROJECT COST ESTIMATE & CAPITAL EXPENDITURE 29-36
3 FUNDING OF PROJECT 37-39
4 NORMS OF OPERATION 40
5 COMPONENTS OF TARIFF 41
6 RETURN ON EQUITY 42-43
7 INTEREST & FINANCE CHARGES 44-45
8 DEPRECIATION 46-47
9 O & M EXPENSES 48-49
10 INTEREST ON WORKING CAPITAL 50-51
11 COST OF SECONDARY FUEL OIL 52-56
12 ENERGY CHARGES (VARIABLE CHARGES) 57
13 OTHER CHARGES 58
14 NON TARIFF INCOME 59
15 FIXED CHARGES AND OTHER CHARGES 60-61
V FORMS – INDEX 62
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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The above named petitioner M.P. Power Generating Company Ltd. respectfully
submits as under:-
1. The petitioner is wholly owned company of Government of M.P engaged
in generation of electricity in the State of Madhya Pradesh. It is a
successor entity of erstwhile Madhya Pradesh State Electricity Board
(MPSEB).
2. The Company has been incorporated as part of implementation of the
power sector reform in M.P. initiated by the Government of MP. The
Company has taken over the generation activities of MPSEB. The
company, while operating and maintaining its existing Units, is also
constructing new power plants for increase in generating capacity in the
State of Madhya Pradesh. The Company is registered under Companies
Act 1956 and was incorporated on 22.11.2001. Its registered office is at
Shakti Bhawan, Rampur, Jabalpur.
3. Earlier, the activities of Generation, Transmission and Distribution have
been looked after in the State of M.P. by the integrated utility i.e. MPSEB,
which was constituted under Section 5 of Electricity (Supply) Act 1948.
The Government of MP enacted M.P. Vidyut Sudhar Adhiniyam 2000
BEFORE THE M.P. ELECTRICITY REGULATORY COMMISSION BHOPAL
Petition No. of 2017 IN THE MATTER OF Approval of Final Generation Tariff for 2x600 MW, Shri Singaji Thermal Power project (SSTPP) Stage I, Units no. 1 & 2, Distt. Khandwa, from CoD of Unit No #1 & 2 upto 31.03.2016, under Section 62 of the Electricity Act, 2003. M.P. Power Generating Company Ltd, Jabalpur.
: Petitioner
Vs
1. M.P. Power Management Company Ltd., Jabalpur. : Respondents
2. M.P. Power Transmission Co. Ltd., Jabalpur.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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and in the spirit of said Act, the unbundling process of the MPSEB was
initiated by registering the following five Companies:-
(i) Madhya Pradesh Power Generating Co. Ltd., Jabalpur
(MPPGCL) (GENCO).
(ii). Madhya Pradesh Power Transmission Co. Ltd.,
Jabalpur (MPPTCL) (TRANSCO).
(iii). Madhya Pradesh Poorva Kshetra Vidyut Vitaran
Company Ltd. Jabalpur (MPPKVVCL) (EAST
DISCOM).
(iv). Madhya Pradesh Madhya Kshetra Vidyut Vitaran
Company Ltd. Bhopal. (MPMKVVCL) (CENTRAL
DISCOM).
(v). Madhya Pradesh Paschim Kshetra Vidyut Vitaran
Company Ltd. Indore (MPPKVVCL) (WEST
DISCOM).
4. The above mentioned five companies, which were registered in
November 2001, entered into Operation & Management Agreement with
erstwhile MPSEB. They worked as agent of MPSEB from July 2002 to
May 2005. The companies started independent functioning w.e.f.
01.06.2005 under Cash flow mechanism as per State Government order
dated 31.5.2005.
5. A Sixth Company, namely the MP Power Trading Company Ltd. was
incorporated as per the Notification of State Government dated 3.6.2006,
specifying functions of TRADECO for purchase of electricity in bulk
from Generating Companies / Traders, from within & outside the State
and supply electricity in bulk to the Electricity Distribution Companies in
the State of Madhya Pradesh.
6. GoMP vide letter No. 6071/13/12/02 dated 29.03.12 has changed the
name of MP Power Trading Company Ltd to MP Power Management
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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Company Ltd and it has been made the holding company for all the
three DISCOMS of MP. Further, GoMP vide its notification dated
26.04.2012 has merged M.P. State Electricity Board with MP Power
Management Company Ltd.
7. MPPMCL and the three DISCOMS of MP have entered into a
management and corporate functions agreement on 05.06.2012, whereby
the three DISCOMS have engaged MPPMCL to represent them in all the
proceedings relating to power procurement and tariff petitions filed or to
be defended before CERC, MPERC and other regulatory authorities,
Appellate Tribunals, High Courts, Supreme Court and CEA etc..
Therefore the three DISCOMS have not separately been made as
respondents.
8. The petitioner is having various power stations/projects in the state of
Madhya Pradesh. Shri Singaji Thermal Power Project (SSTPP) is one
such coal based power project of the Petitioner located near village
Dongalia in Khandwa District of Madhya Pradesh. The site is situated at
a distance of 45 Kms from the district headquarters Khandwa and the
nearest railway station is Bir, at a distance of around 5 Km.
9. In view of remoteness of the Malwa region comprising the districts of
Indore, Ratlam, Ujjain and Dewas (located near the western fringe of the
State) from the major power generating stations (which are located in the
eastern side) great difficulty was being faced in supplying bulk power to
this flourishing region showing substantial growth in demand of
electrical energy for domestic, industrial, agriculture and commercial
consumption. To bridge the gap between the demand and supply, Govt.
of M.P. decided to install 2x500 MW Malwa Thermal Power Project
(Load Based Power Station) near village Dongalia/Purni in Khandwa
district and accorded administrative approval vide letter No. 2966/F-
3/37/13/99dated 18.05.2001.
10. The erstwhile M.P. State Electricity Board (MPSEB) accorded
administrative approval for installation of 2x500 MW coal fired Malwa
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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Thermal Power Project (Ultimate capacity – 2000 MW) at village
Purni/Dongalia, District Khandwa, vide resolution passed in its 27th
meeting held on 14.12.2004 at Bhopal.
11. Initially the Project Cost was tentatively estimated at Rs. 4434.69 Crore
based on prevailing orders awarded on M/s. BHEL (Aug.2005) for
Bhoopalpalli/Vijaywada TPS Stage-IV (1x500MW), Kahalgaon Stage-II
(2x500 MW) (Year 2004) and the DPR of Bhoopalpalli (Year 2005). This
tentative estimate of Rs. 4434.69 Crore was approved by the BoD
MPPGCL vide resolution passed by circulation during 31.01.2006 to
10.02.2006.
12. Govt. of M.P., vide letter no. 6421/13/2005 dated 24.09.2005, had
directed to make efforts to obtain “Mega Power Projects Status” to the
project. One of the main criteria for grant of Mega Power Project Status
was to call offers for implementation of the project through ICB route.
Central Electricity Authority (CEA), vide letter No.
70/SR/HS/TPIA/2004 dated 18.03.2005 had advised that while inviting
bids under ICB route, the Generating companies instead of specifying a
particular Unit size may specify a range to get competitive bids from
large number of manufacturers (500 + 20% in case of 500 MW units). It
was further advised that inputs like coal and water need to be tied up
and environmental clearance obtained for the maximum size specified in
the range. In this context, Ministry of Power, GoI, New Delhi, had
advised, vide office memorandum No. 3/2/2006-DVC dated 05.02.2007
to strictly follow the guidelines prescribed by the CEA as above.
13. As such, the project capacity in the first phase was panned as 2*600 MW
and the GoMP accorded revised administrative approval for establishing
2x(500-600) MW Project in the first phase with maximum capacity of the
project as 4X(500-600) MW , vide letter No. 27.13.2007 dated 02.01.2008 .
14. Ministry of Power, Govt. of India, granted Mega Power Project Status to
the project vide Certificate No. 6/3/2006-S.Th. dated 03.01.2007. A
corrigendum to the aforesaid certificate was issued vide letter No.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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6/3/2006-S.Th. dated Dec, 2010 of Ministry of Power, Govt. of India,
changed name of the Project as “Shri Singaji Thermal Power Project” and
installed capacity of 2x600 MW.
15. The above mentioned initial tentative project cost estimate of Rs. 4434.69
Crore was subsequently updated considering the benefits of exemption
of Custom Duty and Excise Duty available due to Mega Power project
Status for the project. The updated project cost was worked out as Rs.
4053 Crore. This tentative project cost estimate of Rs. 4053 Crore was
approved by the BoD, MPPGCL vide resolution passed in its 21st meeting
held on 26.08.2006. This project cost estimate was approved by the
GoMP vide its letter No. 3186/13/2007 dated 04.05.2007 in which the
GoMP approved availing of PFC loan of Rs. 3242.00 Crore (80% of Project
Cost) and GoMP Equity of Rs. 810.60 Crore (20% of the Project Cost) for
the subject project.
16. This updated cost estimate of Rs. 4053 Crore was, however, subject to
further revision after placement of orders for civil works for the Main
Power Block, Balance of Plant (BoP) and Non-EPC works. During the
finalization of BoP contracts in July-Aug 2009, need was felt to revise the
project cost estimate due to receipt of high prices of BoP vis-à-vis the first
revised estimated cost. The project cost estimate was, therefore, again
revised to Rs. 6750.00 Crore. This revised project cost estimate was
approved by the BoD MPPGCL vide resolution passed in its 44th meeting
held on 26.08.2009 at Bhopal. The revised project cost estimate of Rs.
6750.00 Crore was approved by the GoMP vide letter of Energy
Department vide No. 8271/13/2009 dated 17.11.2009. In its above
approval dated 17.11.2009, the GoMP also approved availing of PFC loan
of Rs. 5400 Crore (80% of revised project cost of Rs. 6750.00 Crore) and
GoMP Equity of Rs. 1350 Crore (20% of revised project cost estimate of
Rs. 6750 Crore).
17. The Project Cost estimate has now been revised to Rs. 7820.00 Crore.
This revision in project cost was necessitated due to increase in
expenditures on account of Land, Civil Works, Railway Transportation
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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System, Spares, etc., increase in IDC due to delay in commissioning of
Units and change in interest rates on loan. The revised project cost
estimate of Rs. 7820.00 Crore has been approved by the BoD MPPGCL in
its 72nd meeting dated 04.01.2014 held at Bhopal and by GoMP vide letter
dated 23.01.2015.
18. Since the subject Units No. 1 & 2 of SSTPP Stage-I are being installed to
meet the growing demand of power in the State of M.P., the Petitioner
offered 100% power to be generated from these Units to Respondent
No.1 (M.P. Power Trading Co. Ltd., now M.P. Power Management Co.
Ltd.) for onward sale to the Discoms of M.P. on the rates to be
determined by the Hon’ble Commission. Respondent No.1 conveyed its
consent for purchase of 100% power form these Units. A Power
Purchase Agreement to this effect has been signed between the Petitioner
and Respondent No.1 on 04.01.2011. First Amendment Agreement to the
aforesaid PPA was signed on 26.09.2012 for incorporating the change in
name of Respondent No.1 from M.P. Power Trading Company Ltd.
(TRADECO) to M.P. Power Management Co. Ltd. (MPPMCL).
MPPGCL has filed the petition for approval of Provisional Tariff of
Unit1&2 of SSTPP Stage-1 on 31.01.2014 before Hon’ble Commission
Petition (No. 5/2014). The Hon’ble Commission vide its order dated
10.11.2014 has determined the provisional Tariff of Unit-1 of SSTPP
Stage-1 & permitted 95% recovery of Fixed Cost for FY 14 to FY 16 for
Unit-1.
Further, MPPGCL has filed Interlocutory application for seeking
permission to raise bill on provisional basis and recover annual charges
for power to be generated & supplied to MPPMCL by MPPGCL from its
600 Mw UnitNo.2 of SSTPP Stage-1(IA No.02 of P-5/2014). The Hon’ble
Commission vide order dated 18.03.2015 Unit-2 of SSTPP Stage-1 has
permitted 95% recovery of Fixed Cost for FY 14 to FY 16.
Subsequently, MPPGCL has filed the MYT petition for FY 17 to FY 19
(petition No. 08 of 2016) for all Power Stations of MPPGCL. The Hon’ble
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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Commission, in its order dated 14.07.2016 (Para 176) has allowed
MPPGCL to recover the Annual Fixed Charges of SSTPP Stage-
1(Unit1&2) on provisional basis for FY 17 to FY 19.
19. The instant petition is filed under Section 62 of Electricity Act, 2003,
which provides determination of tariff by the Appropriate Commission
for supply of electricity by the generating company.
20. MPERC (Terms and Conditions for Determination of Generation Tariff)
(Revision-II) Regulations, 2012, for the control period FY14 to FY16,
notified on 12.12.2012, have come into force from 01.04.2013. Further,
MPERC Terms and Conditions for Determination of Generation Tariff)
Regulations, 2015, for the control period FY17 to FY 19, notified on
01.01.2016 have come into force from 01.04.2016.
21. Accordingly, the petitioner has filed the petition for determination of
final generation tariff for 2x600 MW, Shri Singaji Thermal Power project
(SSTPP) Stage-1, Units No. 1 & 2, for the period w.e.f. CoD of Unit No.1
i.e. 01.02.2014 upto 31.03.2019 in accordance with above mentioned
Regulations.
22. The motion hearing on the above petition No. 09 of 2017 was held at
MPERC, Bhopal on 20.06.2017. The Hon’ble Commission in its Daily
Order dated 20.06.2017 has made following observation in para 2, which
is reproduced below:-
(i) The petitioner has filed a consolidated petition for determination of
final tariff for FY 2013-14 to FY 2015-16 on the basis of Annual
Audited Accounts alongwith determination of Multi-year Tariff
(MYT) for FY 2016-17 to FY 2018-19 on projection basis.
(ii) Vide Commission’s MYT order dated 14th July’ 2016 in petition
No. 08/2016, the Multiyear Tariff of SSTPP PH-I has already been
determined by the Commission on provisional basis for the same
control period of FY 2016-17 to FY 2018-19.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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(iii) Therefore, determination of another tariff based on different capital
cost for the same control period would not be appropriate in the
subject petition.
In view of the above, the petitioner is directed to file a revised
petition for determination of final tariff only till 31st March’ 2016
based on its Annual Audited Accounts.
23. In compliance to the above directives of Hon’ble Commission, MPPGCL
is filing this revised petition for approval of Final Generation Tariff for
2x600 MW, Shri Singaji Thermal Power project (SSTPP) Stage I, Units no.
1 & 2, Distt. Khandwa, from CoD of Unit No #1 & 2 upto 31.03.2016,
under Section 62 of the Electricity Act, 2003.
24. The details of Capital Expenditure are elaborated in Form TPS 5B,
however, in the instant petition, MPPGCL has considered the Capital
Expenditure as captured and capitalized in the Audited Books of
Accounts of the respective years( FY 14, FY 15 & FY 16) as detailed in
Chapter-2 of instant petition. This is in accordance with the methodology
adopted by Hon’ble Commission in the earlier Final Tariff orders issued
by Hon’ble Commission for STPS PH-4 Sarni, SGTPS PH-3 Birsinghpur
& ATPS PH-3 Chachai
25. The Unit No.1 of SSTPP Stage-I was synchronized on 31.08.2013 at 15:04
Hours and put on Commercial Operation w.e.f. 01.02.2014. The Unit No.
2 was put on Commercial Operation w.e.f. 28.12.2014. Proviso 19 of
MPERC Generation Tariff Regulations 2012 provides for accounting of
Infirm Power as Unscheduled Interchange (UI) and paid for from the
Regional/State UI pool account. Accordingly the same is considered
while determination of Project cost in Form TPS 5B under the head Start
up fuel. The summary with respect to infirm Power is tabulated
hereunder:-
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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Table 25.1
Particulars Amount (in Rs Crores)
Unit 1 Unit 2 Total
1 Coal 28.75 41.14 69.89
2 Oil 76.22 46.72 122.94
3 Subtotal 104.97 87.85 192.83
4 Less Revenue from Infirm power -7.89 -4.00 -11.89
5 Total 97.08 83.85 180.94
26. The unit wise amount of IDC as on CoD of respective units is considered
in accordance with MPERC Regulations, 2012 while determination of
Capital Cost. The same is elaborated quarter-wise and detailed in Form
TPS Form 5B & summarized hereunder:-
Table 26.1 Rs. Crores
Particulars Total
Amount
Capitalized in Books of Accounts
Balance held in CWIP &
capitalized in subsequent
years
IDC of Unit-1 as on its CoD 659.19 583.99 75.19
IDC of Unit-2 as on its CoD 933.91 872.37 61.54
27. The unit-wise abstract of total Capital expenditure incurred as on their
respective CoD is tabulated hereunder:-
Table 27.1 Rs. Crores Particulars Unit-1 Unit-2
Capital Cost (Excluding IDC & Overheads & Infirm power)
2729.14 2726.18
Add. Interest during construction 659.19 933.91
Add. Overheads 44.67 53.68
Add. Cost of generation of Infirm Power 104.97 87.85
less: Revenue from sale of infirm Power -7.89 -4.00
Total Capital Cost as on CoD 3530.08 3797.62
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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28. The unit-wise details of Capital expenditure as capitalized in Audited
Books of Accounts for respective years is tabulated hereunder:-
Gross Block Details
Table No.28.1 Rs. Crores
Summary of Capitalization- SSTPP Khandwa
SSTPP PH-1
FY 2013-14 FY 2014-15 FY 2015-16
Gross Block As on Unit-1 CoD
Addition CoD to 31-03-2014
As on 31-03-2014
De
du
cti
on
Ad
dit
ion
As on
Unit-2
CoD
Addition from CoD
to 31-3-2015
As on 31-03-2015
Ad
jus
t.
Ad
dit
ion
As on
31-03-2016
Unit-1 3152 296 3449 -16 90 3522 22 3544 24 107 3675
Unit-2 363 15 377 0 3244 3621 42 3663 35 121 3819
Total 3515 311 3826 -16 3334 7143 63 7207 59 228 7494
29. The Petitioner has filed this revised petition for approval of final tariff of
2*600 MW, Shri Singaji Thermal Power Project (SSTPP) Stage-I, Units No.
1 & 2, w.e.f. the date of commercial operation (CoD) of Unit No.1 up to
31.03.2016 based on Audited figures on the CoD of Units No. 1 and 2
respectively.
30. Requisite formats have been filled in and enclosed with this revised
petition. It is submitted that the Petitioner has furnished the
information/details as required under the aforesaid formats to the extent
of the same as available with the Petitioner.
31. The Other Expenses, comprising of Rent, Rates and Taxes payable to
Government, MPERC Fee, Cost of Chemicals & Consumables, Entry Tax,
Common charges, Water Charges, Publication Expenses and
SLDC/RLDC/NLDC and Transmission Charges, etc., are on actual basis
for FY 14 to FY 16 and are duly recorded in the Audited Books of
Accounts of Respective years.
32. For working out Return on Equity (RoE), the Base Rate of 15.5% has been
considered by MPPGCL as per MPERC Regulations 2012. Due to any
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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change in Government policy or otherwise, if any, liability of tax and
duties arises for any Year of the control period, the same shall be charged
extra.
33. The Energy Charges (Variable Charges) for the control period FY 2013-
14 to FY 2015-16 has been billed in accordance to proviso 41 of MPERC
(Terms & Condition for determination of Generation Tariff) (Revision-II)
Regulation, 2012. Therefore, no truing up of Energy Charges has been
considered in this revised petition.
34. The performance parameters and cost elements have been duly
elaboraterd in different Chapters as enclosures to the revised petition.
35. Accordingly, the Year wise Fixed Charges has been worked out and tabulated below.
FY 2013-14 to FY 2015-16 Table 35.1 Rs. Crores
Particulars
FY14 FY 15 FY 16 W.E.F. COD of Unit # 1
(01.02.2014 to 31.03.2014)
Unit # 1 Unit # 2 Total (Unit # 1 & 2)
W.E.F. 01.04.2014
to 31.03.2015
W.E.F. COD of Unit # 2 28.12.2014
to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 Return on Equity 104.37 107.46 101.79 209.25 210.80
2 Depreciation 168.48 173.31 180.55 353.86 372.88
3 Interest & Finance Charges 340.60 355.72 364.65 720.37 708.68
4 O&M Expenses 77.70 83.88 83.88 167.76 181.08
5 Intt. On Working Capital 59.32 73.27 95.70 168.96 151.27
6 Secondary Oil Expenses 23.36 19.36 19.36 38.72 22.88
7 Annual Fixed Charges 773.83 812.99 845.94 1658.93 1647.58
8 No. of days in operation 59 365 94 366
9 Proportionate Fixed Charges. 125.08 812.99 217.86 1030.85 1647.58
10 Non Tariff Income -17.33 -9.00 -2.32 -11.32 -26.39
11 Net Fixed Charges 107.75 803.99 215.54 1019.53 1621.19
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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36. Apart from above, other charges are claimed on actual basis for FY 14 to
FY 16 as per Audited Books of Accounts for respective years as tabulated
hereunder:-
FY 2013-14 to FY 2015-16
Table 36.1 Rs.Crores
Particulars
FY14 FY 15 FY 16
W.E.F. CoD of Unit # 1 (01.02.2014
to 31.03.2014)
Unit # 1 Unit # 2
Total
(Unit # 1 & 2)
W.E.F. 01.04.2014
to 31.03.2015
W.E.F. CoD of Unit # 2 28.12.2014
to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 MPERC Fees 0.01 0.18 0.00 0.18 0.36
2 Water Charges 1.49 4.83 1.24 6.07 29.12
3 Cost of Chemical & Lub. 0.34 1.13 0.29 1.42 3.67
4 SLDC Charges 0.02 0.12 0.03 0.15 0.12
5 Rent, Rate & Taxes 0.05 0.12 0.03 0.15 0.13
6 Entry Tax 0.00 0.00 0.00 0.00 0.13
7 Common Exp. 0.00 1.03 0.27 1.30 0.00
Total 1.91 7.41 1.86 9.27 33.53
37. It is humbly requested before the Hon’ble Commission to kindly permit
the same.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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PRAYER
In light of the Hon’ble Commission daily order dated 20.06.2017 in petition No.
09 of 2017, MPPGCL is pleased to file this revised petition by complying with
the directives of Hon’ble Commission. The petitioner respectfully prays that
Hon’ble Commission may be pleased to:-
(a) Approve the Final Generation tariff of 2*600 MW, Shri Singaji Thermal
Power Project (SSTPP) Stage-I, Units No. 1 & 2, from their respective
dates of Commercial Operation till 31.03.2016, as submitted in Para 35 of
this revised petition.
(b) Permit additional recovery on account of Rent, Rates and Taxes payable
to Government, MPERC Fee, Cost of Chemicals & Consumables, Water
Charges, Publication Expenses, Entry Tax, Common Expenses and
SLDC/RLDC/NLDC and Transmission Charges etc, levied by various
authorities on the Petition in accordance with law, on actual basis, over
and above the fixed and variable charges.
(c) Permit differential billing and recovery of interest on the differential
amount of Provisional & Final Tariff in accordance with proviso 15.3 &
15.4 of MPERC Regulations, 2012.
(d) Permit recovery of expenses understated/ not considered in this revised
petition at a later stage, if required.
(e) 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.
(f) Pass such orders as Hon’ble MPERC may finds appropriate in light of
the facts and circumstances of the case, to grant relief to petitioner.
Date: 20.07.2017 (Sanjay Kumar Tripathi)
Place: Jabalpur Officer-in-Charge For and on behalf of MP Power Generating Co. Ltd Jabalpur
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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1. Introduction of 2x600 MW SSTPP Stage-I, Khandwa.
1.1 Shree Singaji Thermal Power Project (SSTPP) is located at village
Purni/Dongalia in Khandwa District of Madhya Pradesh. The site is
situated at a distance of 45 Km from district Head Quarter Khandwa.
The nearest railway station is Bir at a distance of 5 Km from the project
site. Bir Railway Station is 17 Km from Talwaria junction. Railway
Station on Itarsi-Khandwa Station is connected with Talwaria Junction
Railway Station by a separate single line. In view of severe power crisis
prevailing in the State, it was initially decided by GoMP to install two
Units of 500 MW each at SSTPP (erstwhile known as Malwa TPP) site,
which were identified by Site Selection Committee, CEA for
implementation during 12th Plan period.
1.2 The project installation has been taken up with the following requisite
clearances:
Govt. of Madhya Pradesh accorded administrative approval vide
letter No. 2966/F-3/37/13/99 Dated 18.05.2001 for installation of
2x500 MW Malwa Thermal Power Project at village Dongalia/Purni
in Khandwa district. Erstwhile MPSEB accorded administrative
approval for installation of 2x500 MW Coal Fired Malwa Thermal
Power Station (Ultimate capacity -2000 MW) at village Dongalia/
Purni, Distt. Khandwa, vide resolution passed in its 27th meeting
held on 14.12.2004 at Bhopal.
Approval to Initial Project Cost Estimate of Rs. 4434.69 Crore was
accorded by the BoD MPPGCL vide Resolution passed through
circulation during 31.01.2006 to 10.02.2006.
Approval of 80:20 funding pattern through loan (80%) and equity
(20%), accorded by the GoMP vide letter No. 6421/13/2005 dated
24.09.2005.
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Govt. of MP accorded revised administrative approval for
installation of 2x(500-600) MW project in the first phase with
maximum capacity of the project at 4X(500-600) MW, vide letter No.
27/13/2007 dated 02.01.2008.
Ministry of Power, Govt. of India, granted Mega Power Project
Status to the project vide Certificate No. 6/3/2006-S.Th. dated
03.01.2007. A corrigendum to the aforesaid certificate was issued
vide Ministry of Power, Govt. of India, letter No. 6/3/2006-S.Th.
dated Dec., 2010 on the changed name of the Project as “Shri Singaji
Thermal Power Project” and installed capacity of 2X600 MW.
Administrative approval was granted by GoMP for adopting Sub-
Critical technology for the project, vide Energy Department letter
No. 3/1/13/2006 dated 05.02.2007.
Approval of updated project cost estimate of Rs. 4053 Crore,
considering the benefits available due to Mega Power Project Status
for the project, was accorded by the BoD MPPGCL vide resolution
passed in its 21st meeting held on 26.08.2006 . This project cost
estimate was approved by the GoMP vide its letter No.
3186/13/2007 dated 04.05.2007 in which the GoMP approved
availing of PFC loan of Rs. 3242.00 Crore (80% of Project Cost) and
GoMP Equity of Rs. 810.60 Crore (20% of the Project Cost) for the
subject project.
Approval of revised project cost estimate of Rs. 6750 Crore was
accorded by the BoD MPPGCL vide resolution passed in its 44th
meeting held on 26.08.2009 at Bhopal. This revised project cost
estimate of Rs. 6750.00 Crore was approved by the GoMP vide
Energy Department letter No. 8271/13/2009 dated 17.11.2009. In its
above approval dated 17.11.2009, the GoMP also approved availing
of PFC loan of Rs. 5400 Crore (80% of revised project cost of Rs.
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6750.00 Crore) and GoMP Equity of Rs. 1350 Crore (20% of revised
project cost estimate of Rs. 6750 Crore).
Approval of revised project cost estimate of Rs. 7820.00 Crore was
accorded by the BoD MPPGCL vide resolution passed in its 72nd
meeting held on 04.01.2014 at Bhopal.
PFC Loan – Initial sanction for loan amount of Rs. 2730 Crore was
granted by M/s. PFC, vide its letter No. 03:02:MPPGCL:05:01 Malwa
dated 29.05.2006 , against our request for sanction of loan of Rs.
3548.00 Crore (80% of Rs. 4434.69 Crore). Subsequent sanction of
loan amount of Rs. 3242 Crore, considering the updated project cost
to Rs. 4053 Crore, was granted vide PFC letter No.
03:02:MPPGCL:06:02:20701001 Dated 30.03.2007.
Against MPPGCL’s request for enhancing the loan amount to Rs.
5400 Crore (80% of revised project cost of Rs. 6750 Crore) M/s. PFC,
vide letter No. 03/22/MP/MPPGCL/Shree Singaji/Vol. 1/20701001
dated 19.03.2010, enhanced the loan amount from Rs. 3242 Crore to
Rs. 5160.42 Crore.
In view of the revised project cost of Rs. 7820.00 Crore, approved
vide BoD resolution dated 04.01.2014 wherein the BoD also decided
to explore the possibility of seeking funds towards “additional
equity” from GoMP and accordingly, GoMP has enhanced the
Equity sanctioned to Rs. 1521.20 Crores.
Water Allocation- Consumptive water requirement for these Units
with COC of 5 and “Zero Discharge” was estimated to 3705 Cu
M/Hr i.e. 32.5 Million Cu M per year. Allocation of 72 Million Cu M
per year water (for 4x600 MW) from WRD GoMP has been received
vide WRD, GoMP, letter No. LPCB/31/Tech/223/2010 dated
25.05.2012. NOC from CWC was already obtained in Nov 2002 for
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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use of water from Indira Sagar Reservoir on river Narmada, vide
letter dated 01.11.2002.
Environmental clearance- Environmental clearance for installation
of SSTPP Stage I, 2x600 MW, was accorded by the Ministry of
Environment and Forest, GoI, vide letter No. J-13011/50/2007-IA.II
(T) dated 01/10.2008.
Forest Clearance- Forest clearance was accorded by the Ministry of
Environment and Forest, GoI, vide their letter No. 8-78/2007-FC
dated 18.05.2012.
Approval of M.P.P.C.B.- MPPCB approval was accorded vide their
letter No. 7690/TS/MPPCB/2012 dated 19.10.2012, granting
permission to establish 2x600 MW .
Coal Linkage - Letter of Assurance for supply of 4.9939 MTPA coal
was given by SECL vide No. SECL/BSP/S&M/COMM/375/MTPP
MPGCL TPP (LOA)/714 dated 25.06.2010. Subsequently a Fuel
Supply Agreement (FSA) has been signed with M/s. SECL, Bilaspur
on 24.01.2013 for supply of 4.9939 MTPA coal to the project.
Subsequent, three addendums to the FSA, Addendum-1, Addendum-2
and Addendum-3, were signed on 01.07.2013, 31.07.2013 and
24.12.2013 respectively. A supplementary MOU has been signed
between the Petitioner (MPPGCL) and SECL for supply of additional
11 MT coal for SSTPP, Khandwa for commissioning activities
including achievement of CoD, on 24.12.2013.
The GoI has recently issued directives, enabling Thermal Power
Generating Companies for swapping the coal linkage between their
thermal power stations. Accordingly, with the help of GoI, MPPGCL
has swapped coal linked to PH-4, STPS Sarni (2x250MW) from WCL to
PH-1, SSTPP, Khandwa (2x600MW) with SECL coal. The addendum to
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Coal Supply Agreement dated 08.01.2016 for above coal swapping has
been executed. This attempt will reduce the landed coal rate to certain
extent at SSTPP, Khandwa as the coal from nearby WCL mines will be
supplied.
Civil Aviation Clearance- Airports Authority of India (AAI), New
Delhi issued NOC vide letter no. AAI/20012/19/2002-ARI dated
22.02.2002 for construction of Chimney to a height of 275.00 M. The
NOC issued by the AAI was revalidated vide their letter No.
AAI/20012/19/2002-ARI(NOC) dated 17.01.2006.
1.3 Land Acquisition:-
1107.28 HA land has been acquired for construction of 2 units of SSTPP
Stage I and extension thereafter. Besides that, 168.93 HA land has been
acquired for Colony, Raw Water Intake Pipe Line, Approach Road and
Railway Corridor. Out of above indicated total 1267.35 Ha land, 88.59
Ha is Govt. Revenue land, 130.30 Ha is Govt. Forest land and 1057.32 Ha
is Private land.
1.4 Major Systems of SSTPP Stage-I, 2x600 MW Units No. 1 & 2
Brief description of some of the major systems of SSTPS Stage-I, 2x600
MW Units No.1 & 2, is given below:-
1.4.1 Steam Generator
The Steam Generator is of two pass, Single Arch Controlled
Circulation, Radiant Reheat, Dry Bottom, Balanced Draft,
Single Drum type unit designed for firing Pulverized Coal as
principal fuel. It is provided with oil support burners and
adequate number of coal mills.
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. Steam generator is
suitable for operation with HP-LP turbine by-pass system.
Air pre-heaters of Rotary Regenerative type with electric motor
as main drive and air motor as standby drive is provided for
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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each boiler at back end of the boiler which are connected with
gas duct.
The boiler is provided with a set of soot blowers for on load
cleaning of heat transfer surfaces i.e. water walls, super
heaters, re-heaters, economizers and air heaters.
1.4.2 Boiler Feed Pump
One number electric motor driven and two number Turbine
driven Boiler Feed Pumps each having 50% capacities, horizontal,
centrifugal type are provided with booster pumps mounted on the
common shaft.
1.4.3 Milling Plant
The boiler is provided with 9 Bowl Mills, type XRP 1063.
1.4.4 Electrostatic Precipitator
Each steam generating unit is provided with 2 sets of Electrostatic
Precipitators comprising of 4 independent casing. Each of the four
casing has ten working field in the direction of gas flow across the
width, i.e., a total of 20 working field per pass for collection of fly
ash. Each ESP field as connected to its own transformer rectifier.
Each ESP is having 2 number of ash hoppers per field for
collecting ash collected during operation of the Boiler.
1.4.5 Draft Equipment
Each boiler has been provided with 2 x 60% rated centrifugal
/axial type F.D. Fans, 2 x 60 % radial centrifugal type, variable
speed, variable frequency double suction ID Fans with inlet
damper control and 2 Nos. 60% capacity two stage axial reaction
centrifugal type PA Fans.
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1.4.6 Steam Turbine Generator Unit
Steam Turbine
The steam turbine is of tandem compound design with separate
HP, IP and 2 Nos. LP Cylinders. HP turbine single flow type,
while IP & LP turbine are of double flow type. The turbine is
condensing type with single reheat. All essential controls and
safety inter-locks are provided. It is having all the essential
auxiliaries.
Condensing Equipment
The Condenser is a two pass single shell surface type, box type,
designed with 3 minute hot well capacity, capable for maintaining
the required vacuum while condensing steam at the maximum
rating of the turbine, and is provided with on load tube cleaning
equipment. 3x50% capacity motor driven condensate extraction
pumps have been provided. Two number vacuum pumps with
100% capacity each are provided to maintain the vacuum in the
condenser by expelling the air and non-condensable gases from
the condenser during operation.
Deaerator and Feed Heater
The unit is provided with a variable pressure spray-cum-tray-type
deaerator. The deaerator consists of integral vent condenser,
deaerating header and feed water storage tank of adequate
capacity.
The high pressure horizontal heaters are provided with both drain
cooling and de-superheating zones in addition to the normal
condensing zone.
All the three low pressure feed water heaters are horizontal type
and are equipped with drain cooling and condensing zones except
LPH-1, which is provided only with external drain cooler.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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Generator
The generator is directly connected, horizontal shaft, cylindrical
rotor, commensurately rated for the turbine outputs. The
generator is provided with brushless excitation system. It is
capable of operating in isolation or in parallel and with the power
grid, with voltage variations of (+/-) 5% and frequency variations
between 47.5 Hz to 51.5 Hz.
The Excitation System is capable of supplying excitation current
of the generator under all conditions of operation of load, voltage
and power factor.
1.4.7 Coal Handling System
The unloading conveyor system through wagon tippler (2 Nos.)
and Track Hopper (1 No.) has been provided with Primary
Crusher House (PCH) having 4 Nos. Rotary Breaker Type
Crushers, from where it shall be taken to Secondary Crusher
House having 4 Nos. Ring Granulator Type Crushers. The
crushed coal is either taken to fill Boiler bunkers or is stacked in
crushed coal stock piles by using conveyors for feeding boiler
bunkers or Stacker Reclaimer for stacking in stock yard.
1.4.8 Ash Handling System
Bottom Ash (BA) will be collected in water impounded BA hopper
located beneath the boiler. Bottom ash from water impounded BA
hopper will be removed and sent to ash slurry pump house using
jet pumps. The bottom ash so collected in the slurry sump shall be
pumped in slurry form to ash pond.
Fly ash, collected in various ducts and ESP hoppers, shall be
extracted and conveyed to buffer hopper automatically and
sequentially by means of vacuum generated by mechanical
exhausters and transported to 3 nos. (one standby) fly ash silos by
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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means of pressure conveying system. Each fly ash silo has been
provided with five outlets, two for unloading fly ash in to open
trucks through ash conditioner, two for unloading ash in to closed
trucks through telescopic chute, one for future use.
1.4.9 Fuel Oil (FO) System
HFO/LDO system is envisaged for boiler start-up and flame
stabilization. A separate Fuel Oil Handling system consisting of
facility of unloading of HFO/LDO from railway wagons, their
storage, heating & transfer to pressurizing pump house, has been
provided.
1.4.10 Plant Water System
Water will be drawn from existing Indira Sagar Reservoir. Three
dedicated Raw Water Intake system shall meet requirements of
make up for Circulating water/CT make up for Condenser and
other Auxiliaries, Ash handling & disposal, Boiler Make-up, Plant
Services, Fire fighting, water for bearing cooling and other
auxiliary systems etc. The Circulating water system is of closed
circuit cooling system and having 2 Nos. Natural Draft Cooling
Towers, one for each of the unit.
1.4.11 Electrical System
The Power will be generated at 21 KV and stepped up to 400 KV
for evacuation. Evacuation of power from the units would be
through four nos. 400 KV transmission lines to Pithampura 1 & 2,
Julwania & Chhegaon and through 2 Nos. 220 KV lines to
Chhegaon.
1.4.12 Instrumentation and Controls
The control & monitoring System for steam Turbine, Steam
Generator (Boiler) and other Balance of Plant station auxiliaries is
built around maxDNA, a microprocessor based Distributed
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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control system, specifically designed and developed to suit Power
plant environment. The control system is configured in a
functionally distributed architecture to enable plant operation
from a centralized control room.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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2. Project Cost Estimates & Capital Expenditure
2.1 Initially the Project Cost for was tentatively estimated at Rs.4434.69
Crores based on prevailing orders awarded on M/s. BHEL (Aug.2005)
for Bhoopalpalli/Vijaywada TPS Stage-IV (1x500MW), Kahalgaon Stage-
II (2x500 MW) (Year 2004) and on the DPR of Bhoopalpalli (Year 2005).
This tentative estimate of Rs. 4434.69 Crores was approved by the BoD
MPPGCL vide resolution passed by circulation during 31.01.2006 to
10.02.2006.
2.2 The above mentioned initial tentative project cost estimate of Rs. 4434.69
Crore was subsequently updated considering the benefits of exemption
of Custom Duty and Excise Duty available due to Mega Power project
Status for the project. The updated estimated project cost was worked
out as Rs. 4053 Crores. This tentative project cost estimate of Rs. 4053
Crores was approved by the BoD MPPGCL vide resolution passed in its
21st meeting held on 26.08.2006. This project cost estimate was approved
by the GoMP vide its letter No. 3186/13/2007 dated 04.05.2007, in which
the GoMP approved for availing PFC loan of Rs. 3242.00 Crores (80% of
Project Cost) and GoMP Equity of Rs. 810.60 Crores (20% of the Project
Cost). The updated cost estimate of Rs. 4053 Crores was, however,
subject to further revision after placement of orders for civil work of
Main Power Block, Balance of Plant (BoP) and Non EPC works.
2.3 Subsequently, during finalization of BOP contract in July-Aug 2009, need
was felt to revise the project cost estimate due to receipt of high prices of
BOP with respect to the first revised estimated cost. The project cost
estimate was, therefore, again revised to Rs. 6750.00 Crores, increase in
estimated cost was mainly on account of following reasons:-
(a) Earlier approved project cost of Rs. 4053 Crs. was for 2x500 MW
capacities. Since the order for Main Power Block was placed
through ICB for 2x600 MW capacities, in compliance to
guidelines of Ministry of Power, the project cost need to take
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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into account the actual capacity of the project as 2x600 MW.
The project cost was earlier estimated based on order value of
Bhoopalpalli / Vijaywada (1x500 MW) & Kahalgaon (2x500
MW) projects placed during Year 2005 & 2004 for E&M works
and cost for Civil work was considered from DPR prepared in
2001.
(b) IDC calculation was done considering interest rate as 10.5%,
whereas the interest rate on PFC loan was 11.5% at the time of
first revision of estimate. As such, the estimate for IDC amount
increased from Rs. 612.44 Crores to Rs. 880.34 Crores due to
phasing of expenditure as per actual L-1 Schedule and change
in interest rate.
(c) In the earlier project cost estimate of Rs. 4053 Crores, the value
of Civil & E&M works including Erection, Testing &
Commissioning, freight, insurance, taxes & duties (excl. PV of
Rs. 132.32 Crores) was estimated as 3072.05 Crores. Whereas, in
the second revised estimate the value of Civil & E&M works
including Erection, Testing & Commissioning, freight &
insurance was estimated to be Rs. 5306.4 Crores including the
cost of Main Power Block on the basis of actual order value and
the cost of Balance of Plant & Construction Power based on
prices quoted by the lowest bidders.
(d) A new provision of Rs. 26.4 Crores was required to be made in
the revised project cost estimate towards payment of Entry Tax.
(e) In the earlier approved project cost estimate, a provision of Rs.
16 Crores was made against the head “Cost of Land”.
However, in the revised project cost estimate, a provision of Rs.
65.00 Crores was made on the basis of actual expenditure
incurred in land acquisition activities till that time.
(f) Cost of civil works, which includes GCW-1 (based on actual
order value), GCW-II (other civil works), GCW-III (colony
package) and Rail Transport System is estimated on the basis of
latest estimated cost of these works.
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(g) A provision of Rs. 247.50 Crores has been made towards Price
Variation in the revised project cost estimate, as against the
provision of Rs. 132.32 Crores made in the earlier approved
project cost estimate on this account.
(h) Cost estimate towards Consultancy Services was enhanced
from Rs. 8 Crore to Rs. 15 Crores due to inclusion of Third Party
Inspection, Project Monitoring works etc.
2.4 This revised project cost estimate of Rs. 6750 Crores was approved by the
BoD MPPGCL vide resolution passed in its 44th meeting held on
26.08.2009 at Bhopal and by GoMP vide Energy Department letter No.
8271/13/2009 dated 17.11.2009. In its approval dated 17.11.2009, the
GoMP also approved availing of loan of Rs. 5400 Crores (80% of revised
project cost of Rs. 6750.00 Crores) from M/s. PFC and GoMP Equity of
Rs. 1350 Crores (20% of revised project cost estimate of Rs. 6750 Crores).
2.5 The project Cost estimate has further revised to Rs. 7820.00 Crores. This
revision in project cost was necessitated due to increase in expenditures
on account of Land, Civil Works, Railway Transportation System, Spares,
etc., increase in IDC due to delay in commissioning of Units and change
in interest rates on loan. This revised project cost estimate of Rs. 7820.00
Crores has been approved by the BoD MPPGCL in its 72nd meeting dated
04.01.2014 held at Bhopal. Revision in the cost estimate to Rs. 7820.00
Crores was mainly on account of the following reasons:-
A. Civil Works- (General Civil Works):-
I. GCW-II got increased due to addition of (a) new requirement
of two outside roads with electrification & (b) award of left
over works. As such, cost of GCW-II increased to Rs. 112.00
Cr. from Rs. 50.50 Cr.
II. After backing out of contractor, GCW-III (colony) works was
re-ordered, at higher cost. Cost for construction of furnished
pre-fabricated accommodation near power house has also been
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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added up in this head. As such, cost of GCW-III increased to
Rs. 177.42 Cr. from Rs. 110.00 Cr.
B. Private Railway Siding –
As per original scheme rail route for coal / oil transportation upto
power house from main line (Itarsi – Surgaon – Banjari – Talwadia –
Khandwa – Bhusawal) was through Bir Via Talwadia. To avoid
engine reversal and surface crossing in handling of coal rakes on
regular basis at Talwadia station on existing busy rail traffic from
Itarsi to Khandwa, Railway insisted to lay a new line from Surgaon-
Banjari to Bir (12.5 Kms.)
Further, additional payment involved in this head include O&M
charges for Bir Station for Ten years amounting to Rs. 30.00 Cr.,
Departmental charges (incl. supervision) and Director & General
charges leviable on Civil, OHE and S&T works at certain rates. D&G
charges are not applicable on the works carried out by railways /
railway approved contractor / client. Thus, cost has increased to Rs.
288.33 Cr. from Rs. 111.00 Cr.
C. Land-
Due to actual cost of land and due to additional land acquired
subsequently, for rail line in between Surgaon-Banjari to Bir and a
portion of approach road parallel to rail line near power house, and
the expenditure required to be incurred as per revised R&R policy,
cost estimate on this account has increased to Rs. 117.50 Cr. from Rs.
65.00 Crores.
D. Additional Spares-
Provision has been made for additional spares of Rs. 60.31 Cr. based
on the project cost, subject to ceiling norms as per Regulation.
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E. Contingency-
Based on the sanctioned & expected work estimates, there is
reduction in Contingency provision from earlier estimated figure of
Rs. 82.72 Crores to Rs. 40.00 Crores.
F. Establishment –
The earlier approved amount of Rs. 132.54 Crores was for
Establishment expenses. In the revised estimate of Rs. 7820.00 Crores,
a provision of Rs. 60.00 Cr. only has been kept for Establishment
expenses, based on the actual figures till Jun 2013.
G. Start up fuel - Construction & Pre-Commissioning Expenses : -
The earlier provision of Rs. 10.00 Crores. was on account of Startup
fuel. A provision of Rs. 190.78 Crore has been kept against this head,
based on estimated fuel expenditure and revenue earned during
Infirm Power Generation from the two Units, till respective CODs.
This also includes expenditure on account of commissioning power
during trial runs of the Units.
H. Water Charges-
A provision of Rs. 2.50 Cr. towards water charges has been made in
the revised project cost estimate, which was not included in earlier
approved estimate.
I. Increase in IDC –
The IDC amount has increased to Rs. 1473.05 Crores form the earlier
estimated value of Rs. 880.34 Crores. This is mainly due to (a)
additional amount of loan required for funding of increased project
cost, (b) delay in commissioning of Units and (c) change of interest
rates during the currency of loan from 11.5% to 12.75%.
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2.6 A comparative of the revised project cost estimate is tabulated
hereunder:-
Table 2.6.1
GoMP Project Cost Approval (Letter No. & Date)
Amount in Rs. Crores
1 3186/13/2007 dated 04-05-2007 4053
2 8271/13/2009 dated 17-11-2009 6750
3 F-5-15/2012/13 dated 23-01-2015 7820
2.7 Capital Expenditure till COD of Unit No.1, as on Station CoD and as
on 31.03.2016:-
The Unit wise & component wise details of approved & actual Capital
Expenditure at SSTPP PH-1 Khandwa are elaborated in form TPS-5B. A
summary of same is tabulated hereunder:-
Table 2.7.1 Rs. Crores
SSTPP PH-1
FY 2013-14 FY 2014-15 FY 2015-16
Cap. Expenditure
As on Unit-1 CoD
Addition CoD to 31-03-2014
As on 31-03-2014
Addition As on Unit-2 CoD
Addition from
CoD to 31-3-2015
As on 31-03-2015
Addition FY 16
As on 31-03-2016
Unit-1 3530.08 37.52 3567.61 60.94 3628.55 27.06 3655.61 47.29 3703.76
Unit-2 3215.50 128.12 3343.62 454.00 3797.62 29.23 3826.85 50.11 3877.09
Total 6745.59 165.64 6911.23 514.94 7426.17 56.30 7482.47 97.40 7580.85
Further the detailed bifurcation of Capital Cost as on CoD of Unit-1 & 2
are detailed hereunder:-
Table 2.7.2 Rs. Crores
Particulars Unit-1 Unit-2
Capital Cost (Excluding IDC & Overheads & Infirm power)
2729.14 2726.18
Add. Interest during construction 659.19 933.91
Add. Overheads 44.67 53.68
Add. Cost of generation of Infirm Power 104.97 87.85
less: Revenue from sale of infirm Power -7.89 -4.00
Total Capital Cost as on CoD 3530.08 3797.62
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2.8 Capital expenditure capitalized in Audited Books of Accounts:-
In the instant revised petition, MPPGCL has considered the capital
Expenditure as capitalized in the Audited Books of Accounts of the
respective years. This is in accordance with the methodology adopted by
Hon’ble Commission in the earlier Final Tariff orders issued by Hon’ble
Commission for STPS PH-4 Sarni, SGTPS PH-3 Birsinghpur & ATPS PH-
3 Chachai.
The Unit wise & year wise breakup of Capital Cost as capitalized in the
Audited Books of Accounts for FY 2013-14, FY 2014-15 & FY 2015-16 is
elaborated in the table below:-
Gross Block Details
Table No.2.8.1 Rs. Crores
SSTPP PH-1
FY 2013-14 FY 2014-15 FY 2015-16
Gross Block As on Unit-1 CoD
Addition CoD to 31-03-2014
As on 31-3-2014
Deduction
Addition As on Unit-2 CoD
Addition from CoD
to 31-3-2015
As on 31-03-2015
Adjustment
Addition As on 31-03-2016
Unit-1 3152.10 296.41 3448.51 -16.31 89.56 3521.76 21.96 3543.72 24.12 107.28 3675.11
Unit-2 362.55 14.91 377.46 -0.17 3244.19 3621.49 41.51 3662.99 34.99 120.57 3818.55
Total 3514.66 311.31 3825.97 -16.48 3333.75 7143.24 63.47 7206.71 59.11 227.85 7493.66
Further the detailed bifurcation of Gross Block as on CoD of Unit-1 & 2
are detailed hereunder:-
Table No. 2.8.2. Rs. Crores
Particulars Unit-1 Unit-2
Hard Cost Capitalized 2428.58 2614.08
Soft Cost
Add: Interest During Construction Capitalized
583.99 872.37
Add: Overheads capitalized 42.45 51.17
Add. Cost of generation of Infirm Power 104.97 87.85
less: Revenue from sale of infirm Power -7.89 -4.00
Total Amount Capitalized 3152.10 3621.49
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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2.9 Liquidated Damages for delay in completion of facilities
As per the contract, COD of Unit No.1 & 2 were to be achieved within 42
months and 46 months respectively form the effective date of contract
(12.12.2008). The scheduled CoD dated for Unit No.1&2 were 11.06.2012
& 11.10.2012. However, the commissioning targets have slipped for both
the Units.
To avoid contractual problems, which may further affect the
commissioning of these Units, time extension has been granted to M/s.
BHEL, without prejudice to the recovery of LD as per Contract upto
11.11.2013 for Unit #1 & 11.03.2014 for Unit #2 respectively as approved
by BoD MGGCL in 87th BoD meeting. Similarly, time extension has been
granted to M/s. L&T, without prejudice to the recovery of LD as per
Contract upto 31.01.2014 for Unit #1 & 31.07.2014 for Unit #2
respectively as approved by BoD MGGCL in 87th BoD meeting LD shall
be applicable beyond these dates for both Firms.
The recovery on account of LD due to delay in commissioning after the
extension period is under process The actual position in respect of the
LD amount deducted from contractors’ bills shall be submitted before
Hon’ble Commission, after its finalization in due course of time.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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3. Funding of the Project
3.1 Funding of the project is done through PFC Loan 20701001and GoMP
Equity in 80:20 ratio, as approved by GoMP, vide Energy Department
letter No. 6421/13/2005 dated 24.09.2005.
3.2 PFC had initially sanctioned a loan (No. 20701001) amounting to Rs.
2730.00 Crores, vide sanction letter dated 29.05.2006, for setting up of the
instant project against the Project Cost Estimate of Rs. 4434.69 Crores.
The loan amount sanctioned by M/s. PFC was only 61.56% of the project
cost estimate of Rs. 4434.69 Crores. Subsequently, on MPPGCL’s request,
M/s. PFC vide its sanction letter dated 30.03.2007 enhanced the loan
amount against Loan No. 20701001 to Rs. 3242.00 Crores, being 80% of
the revised project cost estimate of Rs. 4053.00 Crores.
3.3 The aforesaid loan has been further enhanced by PFC to Rs. 5160.42
Crores, against the revised project Cost Estimate of Rs. 6750.00 Crores,
vide PFC sanction letter dated 19.03.2010.
3.4 The Project Cost estimate has further revised to Rs. 7820.00 Crores. On
MPPGCL’s request, PFC vide letter dated 07.02.2014 has enhanced the
above-mentioned loan to Rs. 6328 Crores.
3.5 Initially the tied up Equity with GoMP for SSTPP PH-1 was Rs. 1350
Crores. However, with the revision of project cost detailed above, GoMP
has infused an Equity amounting to Rs. 1521 Crores in the project till
date.
3.6 Presently, the funding pattern of the project through Loan and Equity for
the estimated completed project cost of Rs. 7820.00 Crores is as indicated
in the Table below:-
Funding Pattern through Loan & Equity Table No.3.6.1 Rs. Crores
Particulars Amount
Revised Project Cost 7820
Funding:-
Through PFC loan 6238
Through GoMP Equity 1521
Total 7759
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
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3.7 The funding difference of Rs. 61 Crores (Rs.7820 Crs-7759 Crs) are untied
up funds, for which GoMP has been requested; else wise the same shall
be met from the internal resources of MPPGCL.
3.8 The Quarter wise loan and equity drawls are submitted in Form TPS-14.
The details of funding till CoD of Unit No.1 (01.02.2014), as on the CoD
of Unit No.2 (28.12.2014) and that on 31.03.2016 are tabulated hereunder.
Table No. 3.8.1 Rs. Crores
Particulars Funding Total
Proportionate allocation
Unit-1 Unit-2
1 As on Cod of Unit-1 (01.02.2014)
PFC Loan 5070.88 2608.34 2462.54
GoMP Equity 1270.27 653.40 616.87
2 As on Cod of Unit-2 (28.02.2014)
PFC Loan 5700.66 2923.23 2777.43
GoMP Equity 1350.00 693.26 656.74
3 As on 31.03.2015 PFC Loan 5930.03 3037.91 2892.12
GoMP Equity 1350.00 693.26 656.74
4 As on 31.03.2016 PFC Loan 6053.45 3099.62 2953.83
GoMP Equity 1370.00 703.26 666.74
3.9 The Figures for total debt and total equity funding till 31.03.2016 are
actual figures based on the actual loan and equity drawls. The Unit wise
breakup of debt and equity funding is indicative only and is based on
respective Unit wise ratios in the total expenditure on corresponding
dates.
3.10 Ratio of loan and equity drawls as on the CoDs of Unit 1 and Unit 2,
respectively, are indicated in the table 3.6.1 below:
Table No.3.10.1 Rs. Crores
Particulars PFC Loan
Drawls
GoMP Equity Drawls
Debt Equity Ratio
As on CoD of Unit-1 5070.88 1270.27 80% : 20%
As on CoD of Unit-2 5700.66 1350.00 81% : 19%
As may be seen from the above table, total equity drawn for Unit No.1
till its CoD is 20% of total funding for Unit No.1 till its CoD. Similarly,
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
39
the total equity drawn for Unit No.1 and 2 as on the CoD of Unit No.2,
i.e., Station CoD, is 19% of total funding for Unit No.1 and 2 as on Station
CoD. The Petitioner has, therefore, considered the above equity amounts
as on the respective CoDs and the equity additions indicated above, for
computing the Return on Equity as per MPERC Regulations, 2012.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
40
4. Norms of Operation –
4.1 The Norms of operation for Shri Singaji Thermal Power Project (SSTPP)
Stage-I, Units No.1 & 2 (2x600 MW) for the control period FY 14 to FY16
have been considered as prescribed by the Commission in MPERC
(Terms and Conditions of Generation Tariff) (Revision-II) Regulations,
2012 {RG-26 (II) of 2012}.
4.2 Accordingly, following norms are applicable for 2x600 MW, SSTPP
Stage-I, Unit No.1 & 2, for the period from FY 14 to FY 16:
Table 4.2.1
Year PAF Auxiliary Sp Oil Con Heat Rate
% % ml/KWH k Cal/KWH
FY 14 85.00% 6.00% 1.00 2384.25
FY 15 85.00% 6.00% 1.00 2384.25
FY 16 85.00% 6.00% 1.00 2384.25
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
41
5. Components of Tariff:-
5.1 As per MPERC (Terms and Conditions for Determination of Generation
Tariff) (Revision-II) Regulations, 2012 {RG-26 (II) OF 2012 }, tariff for sale
of electricity from a thermal power generating station shall comprise of
two parts, namely the recovery of Annual Capacity (Fixed) Charges and
Energy (Variable) Charges, to be worked out in the manner provided in
these Regulations.
5.2 The annual Capacity (Fixed Charges) shall consist of :-
Return on Equity
Interest and Financing Charges on Loan Capital
Depreciation
Lease/Hire Purchase Charges
Operation and Maintenance Expenses
Interest Charges on Working Capital
Cost of Secondary Fuel Oil
Special allowance in lieu of R&M or separate compensation
allowance, wherever applicable:
Provided that in case of coal based thermal generating stations,
expenses on normative secondary fuel oil consumption during the
Year shall be included in the Fixed Charge.
5.3 The Energy (Variable) Charges shall cover main fuel cost.
5.4 Energy charges of a generating station consists of Landed Fuel Cost of
primary fuel i.e. Coal as per MPERC Regulations 2012.
5.5 Accordingly, calculation of these charges as per the applicable MPERC
Regulations has been detailed in forthcoming chapters.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
42
6. Return on Equity
6.1 Return on Equity for the period FY14 to FY16 has been computed on the
paid up equity capital determined in accordance with Proviso 22 of
MPERC Regulations, 2012 {RG-26 (II) of 2012} and has been computed on
pre-tax basis at the base rate of 15.5%.
6.2 The Year wise & unit wise PFC loan No.20701002 drawls are tabulated
hereunder:-
Table 6.2.1 Rs. Crores
Financial Year Equity Drawn
Proportionate unit wise
Unit-1 Unit-2
2006-07 40.00
2007-08 95.19
2008-09 64.61
2009-10 56.00
2010-11 249.04
2011-12 242.43
2012-13 363.00
FY 2013-14 (upto CoD of Unit1) 160.00
Subtotal ( As on Cod of Unit-1) 1270.27 653.40 616.87
FY 2013-14 (from CoD of Unit1 to 31-03-2014)
79.73 39.87 39.87
FY 2014-15(upto CoD of Unit 2) 0.00 0.00 0.00
Subtotal ( As on Cod of Unit-2) 1350.00 693.26 656.74
FY 2014-15 (from CoD of Unit2 to 31-03-2015)
0.00 0.00 0.00
Subtotal( As on 31.03.2015) 1350.00 693.26 656.74
2015-16 20.00 10.00 10.00
Total 1370.00 703.26 666.74
6.3 MPERC regulation provides that where equity actually employed is in
excess of 30%, the amount of equity for the purpose of Tariff has been
limited to 30% and the balance amount has been considered as loan. The
interest rate applicable on the equity in excess of 30%, treated as loan, has
been taken as specified in the applicable Regulation. Where actual
equity employed is less than or equal to 30%, the actual equity deployed
has been considered.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
43
Accordingly, the Normative Equity for the purpose of working out
Return on Equity has determined as under:-
Table 6.2.1 Rs. Crores
Particulars Gross Block
30% of Gross Block
Actual Equity Drawl
Normative Equity for RoE
As on CoD of Unit-1 3152.10 945.63 653.40 653.40
As on CoD of Unit-2 7143.24 2142.97 1350.00 1350.00
6.4 The CoD of Unit No.1 was 01/02/2014 and that of Unit No.2 was
28.12.2014. As such, during FY14, only Unit No. 1 was under commercial
operation for a period of 59 days. During FY 15, Unit No.1 and Unit
No.2 were under operation for 365 days & 94 days, respectively.
Accordingly, the amount of Return of Equity for Unit No.1 and 2 for the
period FY14 and FY15 have been calculated on pro-rata basis for
respective days of operation only.
6.5 The Return on Equity for FY 2013-14 to FY 2015-16 works out as under:-
Return on Equity for the Period FY 2013-14 to FY 2015-16
Table 6.5.1 Rs. Crores
Particulars
FY14 FY 15 FY 16
W.E.F. CoD of Unit # 1 (01.02.2014
to 31.03.2014)
Unit # 1 Unit # 2
Total
(Unit # 1 & 2)
W.E.F. 01.04.2014 to
31.03.2015
W.E.F. CoD of Unit # 2
28.12.2014 to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 Normative Equity - Opening 653.40 693.26 656.74 1350.00 1350.00
2 Add: Drawls during the Year 39.87 0.00 0.00 0.00 20.00
3 Normative Equity – Closing 693.26 693.26 656.74 1350.00 1370.00
4 Average Normative Equity 673.33 693.26 656.74 1350.00 1360.00
5 Rate of RoE 15.50% 15.50% 15.50%
6 Return on Equity for the year
104.37 107.46 101.79 209.25 210.80
7 Days in operation 59 365 94 366
8 Return on Equity for the period of operation during the Year
16.87 107.46 26.22 133.67 210.80
6.6 It is humbly requested before the Hon’ble Commission to kindly permit
the same.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
44
7. Interest & Finance Charges
7.1 Considering the terms of the PFC loan No. 20701001 sanctioned by PFC,
as detailed in Chapter No.3, Interest and Finance charges on loan capital
have been worked out for the period FY14 to FY16, in accordance with
the proviso 23 of MPERC Regulations, 2012 {RG-26 (II) of 2012}.
7.2 Repayment for the respective year has been considered equal to the
depreciation allowed for that Year, in accordance with MPERC
Regulations 2012.
7.3 The Year wise & unit wise drawls of loan (PFC loan No.20701002) are
tabulated hereunder:-
Table 7.3.1 Rs. Crores
Financial Year Total
Drawls
Proportionate unit wise
Unit-1 Unit-2
FY 2008-09 103.00
FY 2009-10 364.39
FY 2010-11 877.92
FY 2011-12 1533.43
FY 2012-13 1147.62
FY 2013-14(upto CoD of Unit1) 1044.51
Subtotal ( As on Cod of Unit-1) 5070.88 2608.337 2462.541
FY 2013-14 (from CoD of Unit1 to 31-03-2014)
133.57 66.79 66.79
FY 2014-15(upto CoD of Unit 2) 496.21 248.10 248.10
Subtotal ( As on Cod of Unit-2) 5700.66 2923.23 2777.43
FY 2014-15 (from CoD of Unit2 to 31-03-2015)
229.37 114.69 114.69
Subtotal( As on 31.03.2015) 5930.03 3037.91 2892.12
FY 2015-16 123.42 61.71 61.71
Total 6053.44 3099.62 2953.83
7.4 The PFC has been requested for extension of moratorium period of PFC
loan No.20701001 upto July 2018. The weighted Average Rate of Interest
has been worked out based on actual loan portfolio as detailed in Form
TPS-13. The same is tabulated hereunder:-
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
45
Table 7.4.1
Financial Year Weighted
Avg. Rate of Interest
1 FY 2013-14 12.96%
2 FY 2014-15 12.97%
3 FY 2015- 16 12.75%
7.5 The CoD of Unit No. 1 was 01.02.2014 and that of Unit No.2 was
28.12.2014. As such, during FY14, only Unit No. 1 was under commercial
operation for a period of 59 days. During FY 15, Unit No.1 and Unit
No.2 were under operation for 365 days & 94 days, respectively.
Accordingly the amount of Interest on Loan for Unit No.1 and 2 for the
period FY14 and FY15 have been calculated on pro-rata basis for
respective days of operation only.
7.6 The Unit wise & year wise Interest on loan for the period FY 2013-14 to
FY 2015-16 has been worked out and tabulated hereunder:-
Normative Interest On Loan for the Period FY 2013-14 to FY 2015-16
Table No.7.6.1 Rs. Crores
Particulars
FY14 FY 15 FY 16
W.E.F. CoD of Unit # 1
(01.02.2014 to 31.03.2014)
Unit # 1 Unit # 2
Total
(Unit # 1 & 2)
W.E.F. 01.04.2014 to
31.03.2015
W.E.F. CoD of Unit # 2
28.12.2014 to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 Normative loan - Opening 2608.34 2647.89 2777.43 5425.32 5682.99
2 Add: Drawls during the Year 66.79 362.79 114.69 477.47 123.42
3 Less: Repayment (s) of Normative Loans during the year(depreciation)
27.23 173.31 46.50 219.81 372.88
4 Net Normative loan –Closing 2647.89 2837.37 2845.62 5682.99 5433.52
5 Average Normative Loan 2628.11 2742.63 2811.52 5554.15 5558.26
6 Weighted Avg. Rate of Interest on Actual Loans
12.96% 12.97% 12.75%
7 Interest on Normative Loan for the year
340.60 355.72 364.65 720.37 708.68
8 Days in operation 59 365 94 366
9 Interest on Normative Loan for days in operation
55.06 355.72 93.91 449.63 710.68
7.7 It is humbly requested before Hon’ble Commission to kindly permit the
same.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
46
8. Depreciation
8.1 The Hon’ble Commission in its Regulation MPERC (Terms and
Conditions for determination of Generation Tariff) Regulations, 2012
{RG-26 (II) of 2012} has specified the principles of charging depreciation
for the control period FY14 to FY16. Accordingly, MPPGCL has
determined the weighted average rate of depreciation applicable for the
Years FY 14 to FY16 as per MPERC Regulations, 2012, at the rates
specified in Appendix-II of these Regulations.
8.2 The effective rate of depreciation on annual basis for FY 14 to FY 16 is
tabulated as under:-
Table No.8.2.1
Financial Year Weighted Avg. Rate of
Depreciation (%)
1 FY 2013-14 5.10%
2 FY 2014-15 4.96%
3 FY 2015-16 5.07%
8.3 The Unit wise & year wise details of Capital Cost as capitalized in the
Audited Books of Accounts for FY 2013-14, FY 2014-15 & FY 2015-16 is
elaborated in the table below:-
Gross Block Details Table No.8.3.1 Rs. Crores
SSTPP PH-1
FY 2013-14 FY 2014-15 FY 2015-16
Gross Block As on Unit-1 CoD
Addition CoD to 31-03-2014
As on 31-3-2014
Deduction
Addition As on Unit-2 CoD
Addition from CoD
to 31-3-2015
As on 31-03-2015
Adjustment
Addition As on 31-03-2016
Unit-1 3152.10 296.41 3448.51 -16.31 89.56 3521.76 21.96 3543.72 24.12 107.28 3675.11
Unit-2 362.55 14.91 377.46 -0.17 3244.19 3621.49 41.51 3662.99 34.99 120.57 3818.55
Total 3514.66 311.31 3825.97 -16.48 3333.75 7143.24 63.47 7206.71 59.11 227.85 7493.66
8.4 In reference table above, it is to mention that the deduction of Rs.-16.48
Crores made in FY 2014-15 was on account of Advance Entry Tax paid
during FY 2013-14 & capitalized in said year. The same is reconciled
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
47
during FY 2014-15 & the reversal of Capitalization amounting to Rs. -
16.48 Crores was made in the Books of Accounts of FY 2014-15.
Further, the Adjustment of Rs.59.11 Cores made in FY 2015-16 was
towards the capital works which were completed during FY 2013-14 &
FY 2014-15. However, the same were capitalized in the Audited Books of
Accounts for FY 2015-16.
8.5 The CoD of Unit No.1 was 01.02.2014 and that of Unit No.2 was
28.12.2014. As such, during FY14, only Unit No. 1 was under commercial
operation for a period of 59 days. During FY 15, Unit No.1 and Unit
No.2 were under operation for 365 days & 94 days, respectively.
Accordingly the amounts of depreciation for Unit No.1 and 2 for the
period FY14 and FY15 have been calculated on pro-rata basis for
respective days of operation only.
8.6 Accordingly, the unit wise & year wise depreciation for the period FY
2013-14 to FY 2015-16 has been worked out and tabulated hereunder:-
Deprecation for the Period FY 2013-14 to FY 2015-16
Table No.8.6.1 Rs. Crores
Particulars
FY14 FY 15 FY 16
W.E.F. CoD of Unit # 1 (01.02.2014
to 31.03.2014)
Unit # 1 Unit # 2
Total
(Unit # 1 & 2)
W.E.F. 01.04.2014 to
31.03.2015
W.E.F. CoD of Unit # 2
28.12.2014 to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 Opening Gross Block 3152.10 3448.51 3621.49 7069.99 7206.71
2 Asset Additions 296.41 111.52 41.51 153.03 227.85
3 Deletions/Adjustment 0.00 -16.31 0.00 -16.31 59.11
4 Closing Gross Block 3448.51 3543.72 3662.99 7206.71 7493.66
5 Average Gross Block 3300.31 3496.11 3642.24 7138.35 7350.19
6 Weighted. Avg. Rate of Dep. 5.10% 4.96% 5.07%
7 Amount of Depreciation for the year
168.48 173.31 180.55 353.86 372.88
8 Days in operation 59 365 94 366
9 Dep. for days in operation 27.23 173.31 46.50 219.81 372.88
W.E.F= with effect from
8.7 It is humbly requested before Hon’ble Commission to kindly permit the same.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
48
9. O&M Expenses
9.1 The MPERC (Terms and Conditions for determination of Generation
Tariff) Regulations, 2012 {RG-26 (II) of 2012 }, clause No. 36.1, provides
as under:
The Operation and Maintenance expenses admissible to existing
thermal power stations comprise of employee cost, Repair &
Maintenance (R&M) cost and Administrative and General (A&G)
cost. These norms exclude Pension, Terminal Benefits and
Incentive, arrears to be paid to employees, taxes payable to the
Government and fees payable to MPERC. The Generating
Company shall claim the rent, rate & taxes payable to the
Government, cost of chemicals and consumables, fees to be paid to
MPERC and any arrears paid to employees separately as actual.
The claim of pension and Terminal Benefits shall be dealt as per
Regulation 26.5.
9.2 Further, the Regulations 2012 has also specified the rates for normative
O&M expenses applicable for new Thermal Generating Units
commissioned on or after 01.04.2012 for the period FY14 to FY16. These
rates are as tabulated hereunder:
Table No.9.2.1
O&M Norms for 600MW Unit
Rs. Lakhs/MW
FY 2013-14 12.95
FY 2014-15 13.98
FY 2015-16 15.09
9.3 The above mentioned norms have been considered while determining
the O&M expenses for Shri Singaji Thermal Power Project (SSTPP) Stage-
I, Units No.1 & 2 (2x600 MW) for the control period FY 2013-14 to FY
2015-16.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
49
9.4 The CoD of Unit No.1 was 01.02.2014 and that of Unit No. 2 was
28.12.2014. As such, during FY14, only Unit No. 1 was under commercial
operation for a period of 59 days. During FY 15, Unit No.1 and Unit
No.2 were under operation for 365 days & 94 days, respectively.
Accordingly the amounts of O&M Expenses for Unit No.1 and Unit No.2
for the period FY14 and FY15 have been calculated on pro-rata basis for
respective days of operation only.
9.5 The Year wise O&M expenses being claimed by MPPGCL as per norms
are detailed in table below:
Table No.9.5.1
Particulars
FY14 FY 15 FY 16
W.E.F. CoD of Unit # 1 (01.02.2014
to 31.03.2014)
Unit # 1 Unit # 2
Total
(Unit # 1 & 2)
W.E.F. 01.04.2014
to 31.03.2015
W.E.F. CoD of Unit # 2 28.12.2014
to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 O&M Norms (Rs. Lakhs/MW) 12.95 13.98 13.98 13.98 15.09
2 Installed Capacity (MW) 600 600 600 1200 1200
3 O&M Charges (Rs. Crores) 77.70 83.88 83.88 167.76 181.08
4 Days in operation 59 365 94 366
5 O&M Charges for the period of operation during
the Year (Rs. Crores) 12.56 83.88 21.60 105.48 181.08
9.6 It is humbly requested before Hon’ble Commission to kindly permit the
same.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
50
10. Interest on Working Capital
10.1 Interest on working capital for FY14 to FY16 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 for
determination of Generation Tariff) Regulations, 2012 {RG-26 (II) of 2012},
as elaborated below:-
Cost of coal for two months corresponding to the normative availability;
Cost of secondary fuel oil for two months corresponding to the normative availability.
Maintenance spares @20% of the normative O&M expenses;
Receivables equivalent to two months of capacity charges and energy charges for sale of electricity calculated on the Normative Annual Plant Availability Factor.
Operation and Maintenance expenses for one month.
10.2 As specified in proviso 27.1 of MPERC (Terms and Conditions for
determination of Generation Tariff) Regulations, 2012 {RG-26 (II) of
2012}, rate of interest on working capital for the years FY14 to FY16 has
been taken equal to Base Rate declared by State Bank of India Base Rate
as on 1st of April of that financial Year plus 3.5%.
10.3 The Base Rate of SBI effective from 07.11.2013 was 10.00%. The same has
been considered to remain effective as on CoD of Unit No.1.
Accordingly, the interest rate for FY 14 & FY 15 has been considered as
13.50% (10.00 + 03.50), similarly for FY-16, it was 13.35%.
10.4 Based on above norms, actual fuel cost {Coal & Oil (F.O.)} and the rate of
interest considered, Year wise working capital and interest on working
capital works out as under:
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
51
Table No.10.4.1 in Rs. Crores
Name of Power House
Coal Cost
2 Months
Oil Cost 2
months
Maint. Spare 20% of O&M
expenses
Recv. 2
months
O&M expense 1 month
Total Working Capital
Rate of Interest
%
Interest on WC
SSTPP Unit #1 FY-14 142.26 3.89 15.54 271.23 6.48 439.40 13.50% 59.32
SSTPP Unit #1 FY-15 190.11 3.23 16.78 325.61 6.99 542.71 13.50% 73.27
SSTPP Unit #2 FY-15 270.44 3.23 16.78 411.43 6.99 708.85 13.50% 95.70
SSTPP Unit #1&2 FY-16 401.70 3.81 36.22 676.30 15.09 1133.11 13.35% 151.27
10.5 The CoD of Unit No.1 was 01.02.2014 and that of Unit No.2 was
28.12.2014. As such, during FY14, only Unit No. 1 was under commercial
operation for a period of 59 days. During FY 15, Unit No.1 and Unit
No.2 were under operation for 365 days & 94 days respectively.
Accordingly the amount of Interest on Working capital (IoWC) for Unit
No.1 and Unit No.2 for the period FY14 and FY15 have been calculated
on pro-rata basis for respective days of operation only works as detailed
hereunder:-
Table No.10.5.1 Rs. Crores
Particulars
FY14 FY 15 FY 16
W.E.F. CoD of Unit # 1
(01.02.2014 to
31.03.2014)
Unit # 1 Unit # 2
Total
(Unit # 1 & 2)
W.E.F. 01.04.2014
to 31.03.2015
W.E.F. CoD of Unit # 2
28.12.2014 to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 Intt. on Working Capital 59.32 73.27 95.70 168.96 151.27
2 Days in operation 59 365 94 366
3 IoWC for the period of operation during the Year
9.59 73.27 24.64 97.91 151.27
10.6 It is humbly requested before Hon’ble Commission to kindly permit the
same.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
52
11. Cost of Secondary Fuel Oil
11.1 As per MPERC (Terms and Conditions for determination of Generation
Tariff) Regulations, 2012 {RG-26 (II) of 2012}, the cost of Secondary Fuel
Oil forms a part of the Annual Capacity (Fixed) Charges.
11.2 Accordingly, the expenses on Secondary Fuel Oil consumption during
FY14 to FY16 have been computed for the respective years,
corresponding to the normative Specific Fuel Oil Consumption (SFC) and
Normative Annual Plant Availability Factor, as per proviso 38 of MPERC
Regulations 2012.
11.3 The details of Secondary Fuel Oil ( Furnace Oil (FO) + Light Diesel Oil
(LDO)) as purchased in FY 2013-14 are elaborated in tables below:-
Table No.11.3.1
SSTPP Khandwa (FY 2013-14)
MONTH
FURNACE OIL L.D.O SECONDARY OIL
Quantity (KL)
RATE Rs./KL
Amount in
Rs. Lakhs
Quantity (KL)
RATE Rs./KL
Amount in
Rs. Lakhs
Quantity (KL)
RATE Rs./KL
Amount in
Rs. Lakhs
Apr-13 - - - - - - - - -
May-13 - - - 190.00 65229 123.94 190.00 65229 123.94
Jun-13 - - - 398.335 57746 230.02 398.34 57746 230.02
Jul-13 - - - 200.00 66826 133.65 200.00 66826 133.65
Aug-13 - - - 1459.66 63098 921.02 1459.66 63098 921.02
Sep-13 - - - 964.77 65483 631.76 965 65483 631.76
Oct-13 3794.01 53610 2033.98 1678.57 70947 1190.89 5472.58 58928 3224.87
Nov-13 1213.00 57979 703.29 792.00 75407 597.22 2005.00 64863 1300.51
Dec-13 154.50 56722 87.64 392.00 78492 307.69 546.50 72337 395.32
Jan-14 48.36 59410 28.73 414.00 76909 318.40 462.36 75078 347.13
Feb-14 3070.15 49982 1534.53 705.00 76385 538.51 3775.15 54913 2073.04
Mar-14 2170.50 49599 1076.55 1429.21 71305 1019.11 3599.71 58217 2095.66
Entry Tax
Incl.
Incl.
Incl.
TOTAL 10450.52 52291 5464.72 8623.55 69719 6012.22 19074.07 60170 11476.93
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
53
11.4 The details of Secondary Fuel Oil ( Furnace Oil (FO) + Light Diesel Oil
(LDO)) as purchased in FY 2014-15 are elaborated in table below:-
Table No.11.4.1
SSTPP Khandwa (FY 2014-15)
MONTH
FURNACE OIL L.D.O SECONDARY OIL
Quantity (KL)
RATE Rs./KL
Amount in
Rs. Lakhs
Quantity (KL)
RATE Rs./KL
Amount in
Rs. Lakhs
Quantity (KL)
RATE Rs./KL
Amount in
Rs. Lakhs
Apr-14 - - - 301.46 69705 210.13 301.46 69705 210.13
May-14 2470.36 51904 1282.22 883.08 68753 607.14 3353.44 56341 1889.37
Jun-14 - - - 203.50 65709 133.72 203.50 65709 133.72
Jul-14 - - - 378.00 73042 276.10 378.00 73042 276.10
Aug-14 - - - - - - - - -
Sep-14 - - - 700.00 67413 471.893 700.00 67413 471.89
Oct-14 2115.10 50488 1067.87 904.91 66266 599.64 3020.01 55215 1667.51
Nov-14 - - - - - - - - -
Dec-14 2826.30 40634 1148.44 505.01 57258 289.16 3331.31 43154 1437.60
Jan-15 - - - 576.00 50141 288.81 576.00 50141 288.81
Feb-15 - - - 350.00 43772 153.20 350.00 43772 153.20
Mar-15 2938.41 33571 986.45 294.00 46206 135.85 3232.41 34720 1122.30
Entry Tax
Incl.
Incl.
Incl.
TOTAL 10350.17 43332 4484.98 5095.97 62121 3165.66 15446.14 49531 7650.63
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
54
11.5 The details of Secondary Fuel Oil ( Furnace Oil (FO) + Light Diesel Oil
(LDO)) as purchased in FY 2015-16 are elaborated in tables below:-
Table No.11.5.1
SSTPP Khandwa (FY 2015-16)
FURNACE OIL L.D.O SECONDARY OIL
MONTH Quantity
(KL) RATE Rs./KL
Amount in
Rs. Lakhs
Quantity (KL)
RATE Rs./KL
Amount in
Rs. Lakhs
Quantity (KL)
RATE Rs./KL
Amount in
Rs. Lakhs
Apr-15 256.00 31319 80.18 98.00 44243 43.36 354.00 34897 123.53
May-15 - - - 284.00 46368 131.68 284.00 46368 131.68
Jun-15 - - - 288.987 49432 142.85 288.99 49432 142.85
Jul-15 - - - 214.00 47976 102.67 214.00 47976 102.67
Aug-15 - - - 164.00 48851 80.12 164.00 48851 80.12
Sep-15 2291.65 24885 570.28 1002.11 40275 403.60 3294 29567 973.88
Oct-15 - - - - - - - - - Nov-15 - - - - - - - - - Dec-15 - - - 605.50 38175 231.15 605.50 38175 231.15
Jan-16 - - - 229.00 34494 78.99 229.00 34494 78.99
Feb-16 - - - 293.50 31182 91.52 293.50 31182 91.52
Mar-16 - - - - - - - - - Entry Tax
Incl.
Incl.
Incl.
TOTAL 2547.65 25531 650.45 3179.10 41079 1305.94 5726.75 34162 1956.40
11.6 The CoD of Unit No.1 was 01.02.2014 and that of Unit No.2 was
28.12.2014. As such, during FY14, only Unit No. 1 was under commercial
operation for a period of 59 days. During FY 15, Unit No.1 and Unit
No.2 were under operation for 365 days & 94 days respectively.
Accordingly, the amount of Secondary Fuel Oil on Norms for Unit No.1
and Unit No.2 for the period FY14 and FY15 have been calculated on
pro-rata basis for respective days of operation only.
11.7 The Cost incurred on secondary fuel oil for the period FY14 to FY 16 has
been determined based on the weighted average Price of Secondary Fuel
Oil purchased during respective years.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
55
11.8 The year wise cost of secondary fuel oil being claimed is shown in the
table below:-
Table No.11.8.1
SSTPP Unit #1, Khandwa FY 2013-14
Particulars Unit
MPPGCL
as per
Norms
Installed Capacity MW 600
NAPAF- Normative % 85.00%
Gross Gen. - Normative (Annual) MU 4467.60
Sp. Oil Consumption - Normative ml/KWh 1.00
Quantity of Oil required (Annual) KL 4468
Wt. Avg. Price of Sec. fuel Rs. 60170.3
Cost of Secondary Fuel Oil (Annual) Rs. Crores 26.88
Cost of Secondary Fuel Oil (59 Days) Rs. Crores 4.35
Table No.11.8.2
SSTPP Unit #1, Khandwa FY 2014-15
Particulars Unit
MPPGCL
as per Norms
Installed Capacity MW 600
NAPAF- Normative % 85.00%
Gross Gen. - Normative (Annual) MU 4467.60
Sp. Oil Consumption - Normative ml/KWh 1.00
Quantity of Oil required (Annual) KL 4468
Wt. Avg. Price of Sec. fuel Rs. 49531.1
Cost of Secondary Fuel Oil (Annual) Rs. Crores 22.13
Table No.11.8.3
SSTPP Unit #2, Khandwa FY 2014-15
Particulars Unit
MPPGCL
as per
Norms
Installed Capacity MW 600
NAPAF- Normative % 85.00%
Gross Gen. - Normative (Annual) MU 4467.60
Sp. Oil Consumption - Normative ml/KWh 1.00
Quantity of Oil required (Annual) KL 4468
Wt. Avg. Price of Sec. fuel Rs. 49531.1
Cost of Secondary Fuel Oil (Annual) Rs. Crores 22.13
Cost of Secondary Fuel Oil (94 Days) Rs. Crores 5.70
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
56
Table No.11.8.4
SSTPP Unit #1&2, Khandwa FY 2015-16
Particulars Unit
MPPGCL
as per
Norms
Installed Capacity MW 1200
NAPAF- Normative % 85.00%
Gross Gen. - Normative (Annual) MU 8959.68
Sp. Oil Consumption - Normative ml/KWh 1.00
Quantity of Oil required (Annual) KL 8960
Wt. Avg. Price of Sec. fuel Rs. 34162.4
Cost of Secondary Fuel Oil (Annual) Rs. Crores 30.61
11.9 It is humbly requested before Hon’ble Commission to kindly permit the
expenses towards Secondary Fuel Oil.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
57
12. Energy (Variable) Charges
12.1 The Energy Charges (Variable Charges) for the control period FY 2013-
14 to FY 2015-16 has already been billed in accordance to proviso 41 of
MPERC (Terms & Condition for determination of Generation Tariff)
(Revision-II) Regulation, 2012. Therefore, no truing up of Energy Charges
has been considered in this revised petition.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
58
13. Other Charges
13.1 Other Charges comprises of Rent, Rates & Taxes, MPERC Fees, Entry Tax
on R&M, Water Charges, Cost of Chemical, Cost of Consumable,
Publication Charges & SLDC charges. Water Charges, which are payable
to Government, have been paid based on rates specified by GoMP. Rent,
Rates and Taxes for power stations & Common expenses has been taken
on actuals. SLDC charges have claimed in accordance with Regulation
39, allocated to Thermal Power Stations on MW capacity basis.
13.2 As per the proviso 26.5 of MPERC Regulations 2012, the expenditure
towards actual Pension & Terminal benefits shall be claimed by
Transmission Licensee. Accordingly, MPPGCL had not claimed these
expenses in this revised petition.
13.3 The other expenses in respect of Shri Singaji Thermal Power Project
(SSTPP) Stage-I, Units No. 1 & 2, for the period FY 14 to FY 16 have been
claimed in this revised petition as per Audited Books of Accounts for FY
2015-16.
Table No. 13.3.1. in Rs. Crores
Particulars
FY14 FY 15 FY 16
W.E.F. CoD of Unit # 1
(01.02.2014 to
31.03.2014)
Unit # 1 Unit # 2
Total
(Unit # 1 & 2)
W.E.F. 01.04.2014
to 31.03.2015
W.E.F. CoD of Unit # 2
28.12.2014 to
31.03.2015
W.E.F. 01.04.2015
to 31.03.2016
1 MPERC Fees 0.01 0.18 0.00 0.18 0.36
2 Water Charges 1.49 4.83 1.24 6.07 29.12
3 Cost of Chemical & Lub. 0.34 1.13 0.29 1.42 3.67
4 SLDC Charges 0.02 0.12 0.03 0.15 0.12
5 Rent, Rate & Taxes 0.05 0.12 0.03 0.15 0.13
6 Entry Tax 0.00 0.00 0.00 0.00 0.13
7 Common Exp. 0.00 1.03 0.27 1.30 0.00
8 Total 1.91 7.41 1.86 9.27 33.53
13.4 It is humbly requested before Hon’ble Commission to kindly permit the
same.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
59
14. Non-Tariff Income
14.1 The Hon’ble Commission in (Terms and conditions for determination of
Generation Tariff) (Revision-II) Regulations, 2012 has prescribed for Non-
Tariff Income, as any income being incidental to the business of the
Generating Company derived from sources other than income from sale
of energy shall constitute the Non Tariff Income.
14.2 The Non Tariff Income of SSTPP PH-1 Khandwa as captured in the
Audited books of Accounts for FY 2013-14, FY 2014-15, & FY 2015-16 are
detailed in the table below:-
Table 14.2.1 Rs. Crores
Financial year Amount
FY 2013-14 17.33
FY 2014-15 11.32
FY 2015-16 26.39
14.3 The same may kindly be considered by Hon’ble Commission.
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
60
15. Fixed Charges and Other Charges.
15.1 The cost elements computed for the period FY14 to FY16, in pursuance
with MPERC Regulations-2012, as detailed in foregoing chapters, are
tabulated below:-
FY 2013-14 to FY 2015-16
Table 15.1.1 Rs. Crores
Particulars
FY14 FY 15 FY 16
W.E.F. COD of Unit # 1
(01.02.2014 to 31.03.2014)
Unit # 1 Unit # 2 Total (Unit # 1 & 2)
W.E.F. 01.04.2014
to 31.03.2015
W.E.F. COD of Unit # 2 28.12.2014
to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 Return on Equity 104.37 107.46 101.79 209.25 210.80
2 Depreciation 168.48 173.31 180.55 353.86 372.88
3 Interest & Finance Charges 340.60 355.72 364.65 720.37 708.68
4 O&M Expenses 77.70 83.88 83.88 167.76 181.08
5 Intt. On Working Capital 59.32 73.27 95.70 168.96 151.27
6 Secondary Oil Expenses 23.36 19.36 19.36 38.72 22.88
7 Annual Fixed Charges 773.83 812.99 845.94 1658.93 1647.58
8 No. of days in operation 59 365 94 366
9 Proportionate Fixed Charges. 125.08 812.99 217.86 1030.85 1647.58
10 Non Tariff Income -17.33 -9.00 -2.32 -11.32 -26.39
11 Net Fixed Charges 107.75 803.99 215.54 1019.53 1621.19
15.2 Apart from above, other charges are claimed on actual basis for FY 14 to
FY 16 as per Audited Books of Accounts for respective years as tabulated
hereunder:-
Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)
61
FY 2013-14 to FY 2015-16
Table 15.2.1 Rs. Crores
Particulars
FY14 FY 15 FY 16
W.E.F. CoD of Unit # 1 (01.02.2014
to 31.03.2014)
Unit # 1 Unit # 2
Total
(Unit # 1 & 2)
W.E.F. 01.04.2014
to 31.03.2015
W.E.F. CoD of Unit # 2 28.12.2014
to 31.03.2015
W.E.F. 01.04.2015 to
31.03.2016
1 MPERC Fees 0.01 0.18 0.00 0.18 0.36
2 Water Charges 1.49 4.83 1.24 6.07 29.12
3 Cost of Chemical & Lub. 0.34 1.13 0.29 1.42 3.67
4 SLDC Charges 0.02 0.12 0.03 0.15 0.12
5 Rent, Rate & Taxes 0.05 0.12 0.03 0.15 0.13
6 Entry Tax 0.00 0.00 0.00 0.00 0.13
7 Common Exp. 0.00 1.03 0.27 1.30 0.00
Total 1.91 7.41 1.86 9.27 33.53
15.3 It is humbly requested before the Hon’ble Commission to kindly permit
the same.