Annexure 12 : Compilation of replies to datagaps

Compilation of replies to data gapsReply To Query No 10: Regarding Justification for additional capitalisation for new Units :

MSPGCL Reply :It is the case of MSPGCL that major capitalisation claimed for Paras Units # 3,4 , Parli units # 6,7 , Khaperkheda Unit # 5 and Bhusawal units # 4,5 fall under the purview of Regulation 24.3 , wherein MSPGCL had sought Hon’ble Commission’s In-principle approval to the DPRs to undertake capitalisation schemes . In these units there are some capitalisation claims under Regulation 24.1 and 24.2also. In these units, some of the capital assets had inadvertently remained under books of accounts of respective project accounts , though the works were under original scope and were completed within cut-off date . These assets are now transferred to station books and are accordingly claimed for capitalisation.MSPGCL requests to consider the capitalization as submitted.In case of Koradi Units # 8,9,10, Chandrapur units # 8,9 and Parli unit # 8 , the capitalisation claims are towards the capital expenditure for new schemes are towards elements, which have been part of the original scope of work. MSPGCL had submitted the same as part of the MTR petition and the Hon’ble Commission had approved the same in the order in Case 196 of 2017. Detailed categorization of expenses under Regulation 24.1, 24.2 and 24.3 is provided below.

2817

Sr. No. Station

Approved in MTR Order (196 of 2017)

(Rs. Crs.) Add Cap (Rs. Crs.)

Clause under MERC MYT Regulation,

2015

Approved in MTR Order (196 of 2017)

(Rs. Crs.) DPR(Rs. Crs.)

Non-DPR(Rs.

Crs.)

Clause under MERC MYT Regulation,

2015

Total(Rs. Crs.)

FY 2017-18 1 Bhusawal 4-5   2.64 24.1 1.63 3.86 4.11 24.3 10.61 2 Khaperkheda 5   19.84 24.1 49.69 52.38 - 24.3 72.21 3 Paras 3-4   2.44 24.1 7.32 5.49 0.37 24.3 8.30 4 Parli 6-7   -   1.50 9.75 0.74 24.3 10.49 5 Chandrapur 8-9 982.59 174.80 24.1 982.59 - -   174.80 6 Koradi 8-10 1,188.70 39.38 24.1 1,188.70 -   39.38 7 Parli 8 226.62 52.22 24.1 226.62   52.22

  Total 2,397.91 91.32   2,458.04 71.46 5.23   368.01 FY 2018-19

1 Bhusawal 4-5   2.39 24.1 90.89 8.33 2.98 24.3 13.69 2 Khaperkheda 5   1.31 24.1 82.76 15.39 0.05 24.3 16.74 3 Paras 3-4   -   76.52 23.27 0.70 24.3 23.97 4 Parli 6-7   -   35.08 7.21 1.09 24.3 8.30 5 Chandrapur 8-9 449.04 16.63 24.1 449.04 - -   16.63 6 Koradi 8-10 152.79 132.40 24.1 152.79 - -   132.40 7 Parli 8 142.95 3.92 24.1 142.95 - -   3.92

  Total 744.78 156.63   1,030.04 54.18 4.82   215.64 FY 2019-20

1 Bhusawal 4-5   -   15.90 112.12 9.24 24.3 121.36 2 Khaperkheda 5   -   269.41 79.11 - 24.3 79.11 3 Paras 3-4   -   12.38 94.74 12.63 24.3 107.37 4 Parli 6-7   -   - 55.80 - 24.3 55.80 5 Chandrapur 8-9 122.30 182.00 24.1 122.30 - -   182.00 6 Koradi 8-10 200.41 411.05 24.1 200.41 - -   411.05 7 Parli 8 - 37.53 24.1 - - -   37.53

  Total 322.71 630.58   620.39 341.77 21.87   994.22 Note: Details of capitalization submitted in Form 4.3 of Formats          

2818

Reply to Query No 7 (b) regarding -Additional capitalisation due to change in classification of inventory:

MSPGCL’s Reply: The station-wise break-up of items is provided below.

Station wise Item details for Change In Inventory capitalisation claims for FY 2017-18 Amount Rs.

Amount Rs. Crs.

KPKD 210 CHP-210MWGear Box for stacker

recliamer bucket wheel

61200000.00 6.12

Bhusawal 210 MSA 210 MW   80925130.11  

  EM 210 MW   2185719.90    BM Store 210   967851.43    TM Store 210   21973490.06    CHP 210 MW   1273431.05    I&C 210 MW   2911506.28        110237128.83 11.02

Bhusawal 500 TM STORE 500   7287849.62  

  CHP MM 500   8239576.64    C&I STORE 500   8969372.65    EM STORE 500   1011246.30    MSA 500 MW   35986643.46        61494688.67 6.15

Parli 6-7IMPELLER ASSY WITH

CONICAL COVER PLATE-I&II -10501  

11200000.00 1.12

Koyna     28988000.00 2.90Total     273119817.50 27.31

Station wise Item details for Change In Inventory capitalisation claims for FY 2018-19

Amount Rs.

Amount Rs. Crs.

KPKD 210 BM-210MW   41877613.78  

  TM-210MW  38842848.

50  

  EM-210MW  14913525.

51  

  TIC-210MW  12004571.

00  

 CIVIL-

210MW  1820407.0

0  

2819

Station wise Item details for Change In Inventory capitalisation claims for FY 2018-19

Amount Rs.

Amount Rs. Crs.

     10945896

5.79 10.95         

KPKD 500 BM-500MW  19414852.

39    EM-500MW   799128.17    I&C-500MW  

56327785.77  

  TEST-500MW  

2434558.26  

  TM-500MW  22278349.

03       

101254673.62 10.13

Total    21071363

9.41 21.07

Reply to Query No 18 regarding the break-up of impact of pay revision for FY 2017-18

Existing burden Rs CroreBasic 314DA 445HRA 6.89PF/ Gratuity 153Allowances 45Leave Encashment 100.11Sub Total 1064Rise in old basic 32%Rise in Allowances 100%

However, the impact of pay revision is payable in 2019-20. Accordingly, in 2019-20, the amount for 2018-19 is escalated at 4.27% and allocated to the stations. For stations under RSD, the impact is shown in their employee expenses (~Rs 2 crore). The overall working is shown in the table below:

ParameterRs

CrorePay revision impact for 2018-19 239.52Pay revision impact for 2019-20 (239.52 escalated at 249.75

2820

Impact of pay-revision Rs. Crs.Allowances rise 100% 45Basic + DA burden 106.15HRA burden 61.81PF/ Gratuity @ 25% 26.54Total estimated burden 239.52

4.27%) Total 489.27Less Allocation of RSD 2.11Net Impact 487.16

Reply to Query Nos. 39 & 57 regarding Contingent Liabilities & Commitments for FY 2017-18 and FY 2018-19

Reply: MSPGCL submits that the claims are currently contingent and not actually realised. The said amount will be deducted from the fuel cost as and when such claims are actually realised by MSPGCL. Details of year wise claims are provided in tables below:

Amount in Rs Crore

FY 2017-18

Stone claims

SRN Claims

Interest claims

Grade slippages claim

Moisture claim

Short delivery claims

before 2009 23.29 57.53       0.002009-10

2.66 43.28

      14.992010-11       0.002011-12       191.682012-13       132.282013-14       268.292014-15 24.51     246.732015-16 0.00  

495.24  181.70

2016-17 0.05 0.00     167.482017-18 1.09 0.00 7.59 27.47  TOTAL 27.09 100.81 32.10 495.24 27.47 1203.15

Amount in Crores

FY 2018-19

Stone claims

SRN Claims

Interest

claims

Grade slippag

es claim

Moisture claim

Short deliver

y claims

Total

before 2009 23.29         0.00 23.29

2009-10

2.66 43.28

      14.99 60.932010-11       0.00 02011-12       191.68 191.682012-13       132.28 132.282013-14       268.29 268.292014-15 24.51     246.73 271.24

2821

2015-16         181.70 181.72016-17 0.05         167.48 167.532017-18 1.09   7.59 284.73 27.47 912.23 1233.112018-19 0.92   452.25 1902.89 6.71   2362.77

Total 28.01 43.28 484.352187.6

2 34.182115.3

8 4892.82

Reconciliation of GFA addition and deduction for FY 2017-18 and FY 2018-19

Stationwise addition claimed:

Station FY 2017-18 Rs. Crs.

FY 2018-19Rs. Crs.

Bhusawal Unit 3 11.77 2.67Chandrapur Unit 3 - 7 52.37 78.03Khaperkheda Unit 1-4 47.98 18.40Koradi Unit 6-7 5.19 456.43Nashik Unit 3-5 42.90 15.91Parli Unit 4-5 0.00 0.00Uran 0.30 3.24Paras Units 3 & 4 8.30 23.97Parli Units 6 & 7 11.61 8.30Khaperkheda Unit 5 72.21 26.87Bhusawal Units 4 & 5 16.76 13.69Koradi Units 8, 9 & 10 39.38 132.40Chandrapur Units 8 & 9 174.80 16.63Parli Unit 8 52.22 3.92Pune & Nasik SHP 3.97 6.71Bhira 0.00 0.11Koyna 8.75 6.80Tillari 6.30 1.60Total Addition Claim FY 17-18 554.82 815.67

Reconcilliation with books of accountsFY 2017-18 FY 2018-

2822

Rs. Crs. 19Rs. Crs.

Addition to tangible Assets 528.89 909.71Addition to intangible Assets 2.51 5.02Addition as per Books 531.4 914.73less    Pertaining to Solar Business & project -6.63 113.93 Total 538.03 800.80add    Pertaining to Project/civil offices Total considered in petition 0.80 0.09add 538.83 800.88 IDC of Bhandewadi claimed in Petition as capital cost 15.99 14.77Total Addition Claim FY 17-18 554.82 815.66

Details of Assets pertaining to Solar Business and Project offices

FY 2017-18Rs.

Crs. FY 2018-19 Rs. Crs.Solar Business & SE coal & HO   Sakri Solar Power Station 0.03Sakri Solar Power Station 0.00 Shirsuphal Baramati Solar P.S. 0.00Chandrapur Solar 0.54 Chandrapur Solar P.S. 0.39Nagpur Regional CE Office 0.11 Nagpur Regional CE Office 0.00HO Mumbai -8.43 Nashik Regional CE Office 0.02HO Solar Land Development 0.04 Dhule Civil Circle (Solar park Land

addition) 3.52S.E.(Coal) Nagpur 0.81 HO Mumbai 73.06Koradi Gen.Construction 0.29 HO Solar Project & Civil 28.51Chandrapur Civil Cirlce (own addition in their book)

0.05 HO Solar Land Development -0.04

Parli-Vaijnath Civil Circle (Land compensation refund in Civil book)

-0.03 S.E.(Coal) Nagpur 0.10

Total Pertaining to Solar Business & project

-6.63 Bhusawal Project 0.03

Chandrapur Project (Own addition) 0.01Koradi Gen.Construction 0.06Chandrapur Civil Cirlce (Own addition) 6.98Bhusawal Civil Circle (Own addition) 1.28Total Pertaining to Solar 113.93

2823

FY 2017-18Rs.

Crs. FY 2018-19 Rs. Crs.Business & project

Pertaining to Project/Civil offices Total considered in petition

FY 2017-18Rs.

Crs. FY 2018-19 Rs. Crs.

Parli-Vaijnath Project (Vehicle transferred to Parali TPS) 0.09 Khaperkheda Project 0.01Khaperkheda Project (Transferred to KPKD TPS & considered as addition)

0.48Chandrapur Project (Partial Transferred to TPS to Chandrapur TPS) 0.08

Chandrapur Project 0.07Total Pertaining to Project/civil offices Total considered in petition

0.09

Chandrapur Civil Cirlce 0.10Bhusawal Civil Circle 0.01Paras Civil Circle 0.05Total Pertaining to Project/civil offices Total considered in petition

0.80

Details for other asset additions claimed

FY 2017-18 Rs. Crs. FY 2018-19 Rs. Crs. IDC of Bhandewadi claimed in Petition as capital cost 15.99 LD recovered at

Paras 9.53LD Recovered at Parali 5.24Total 14.77

Retirement of Asset FY 2017-18 and FY 2018-19

Statement for Reconciliation of asset reduction for FY 2017-18 (Amounts in Rs. Crs.)

TPSRetireme

nt Original Assets

Retirment of FRP Assets + *FRP assets transferred classified as asset held for sale

+ Original assets classified as asset

held for sale

Total as per books

of accounts

Petition submissi

onRemark

2824

Bhusawal 0.01 53.79 53.80 0.01  

Chandrapur 0.39

194.85 195.24 0.39

In case no 196/2017 MSPGCL

deducted Asset block of Rs

107.21 and Rs 290.07 Crs for U-

1 and U-2 of chandrapur

Koradi 199.97

-101.05 98.92 0.00

1. Retirement shown here

pertains to Unit 1-4. MSPGCL

already deducted Unit

No. 1 to 4 assets from block of

assets, when it was taken out

for tariff purpose in earlier

petitions. hence not considered in

this petition.Nashik 0.22 12.42 12.64 0.22  Parli 3.17 2.64 5.81 3.17  Khaperkheda 0.00 2.95 2.95 0.00  Small Hydro Power stations 0.04

0.00 0.04 0.04  

Uran 0.34 0.34 0.67 0.34  

HO 0.03

0.00 0.03 0.00

MSPGCL had been claimimg

only depreciation of HO assets in

petition as a part of ARR. Assets

addition was not claimed for HO and Coal office

Nagpur.Total 204.17 165.94 370.10 4.16  

*FRP- Final restructring plan

MSPGCL came into existence as a part of restructuring of erstwhile MSEB vide notification dated 05-06-2005. As a part of this scheme, the assets and liabilities of MSEB got vested with

2825

the Government of Maharashtra and revested to newly created companies including MSPGCL. The said transfer scheme was provisional in nature. Subsequently, vide GR dated 31-03-2016, Government of Maharashtra issued Amendement in Transfer Scheme with revised values of fixed assets on one hand and consequent increase in equity share capital on another hand. As per Clause 3 of the GR,“Maharashtra Electricity Reforms Transfer Scheme, 2005” is amended and clause 10A is inserted in respect of Asset Valuation. As per this clause, “The transfer of the Fixed Assets hitherto held by the Maharashtra State Electricity Board and taken over by the Government of Maharashtra in terms of the Government notification shall be considered to have been transferred to the respective transferees at the market value prevailing on 05-06-2005”.

As per this scheme the net fixed assets value of the Companyas on 05-06-2005 has been increased from Rs. 3566 Crores to 18677 Crores resulting into increase in the value of Net fixed assets by Rs. 15111 Crores and allotment of equity share capital of the equivalent amount to MSEB Holding Company Limited.

Accordingly, the Gross value of individual assets have been increased by Rs. 15611 Crores in the proportion of respective gross value as on 05-06-2005.

2826

Statement for Reconciliation of asset reduction for FY 2018-19 (Amounts in Rs. Crs.)

TPSRetirem

ent Original Assets

Retirement of FRP Assets + FRP assets transferred classified as

asset held for sale (ANIU) +

Original assets classified as

asset held for sale (ANIU)

Total as per books of accounts

Petition submissio

nRemark

Bhusawal 1.33 104.88 106.22 1.33

As per case 196 of 2017, MSPGCL has

deducted asset block of Rs. 101.38

Crs. Which is appearing as

dedcution during FY 2018-19 in the books of accounts.

Chandrapur 25.52 0.08 25.60 25.52

Koradi - 190.89 190.89 109.23

Rs. 190.89 Crs. Is comprised of

Original asset block of Rs. 109.23 Crs. &

Ravalued asset block in pursuant to FRP scheme of Rs. 81.66 Crs. In the current petition

case 296 of 2019, MSPGCL has

deducted original asset block of U#6

(R&M) of Rs. 109.23 Crs.

Nashik 0.28 11.04 11.32 0.28Paras 0.42 0.75 1.17 0.42Parli 3.27 - 3.27 3.27Khaperkheda 0.18 16.95 17.13 0.18Tillari - 0.48 0.48Bhira 0.00 - 0.00 0.00Uran - -Civil - 0.16 0.16

2827

TPSRetirem

ent Original Assets

Retirement of FRP Assets + FRP assets transferred classified as

asset held for sale (ANIU) +

Original assets classified as

asset held for sale (ANIU)

Total as per books of accounts

Petition submissio

nRemark

Construction khaperkhedaHO - -Total

31.00

325.23

356.24

140.23  

Reply to Query No 36 & 55 regarding reconciliation of actual interest on working capital in the following format:

FY 2017-18

Financial Institute Opening

Balance of Loan

Addition of Loan

during the year

Loan Repayment during the year

Closing Balance of Loan

Interest Expenses

(Indian Bank-7 & BoM-1) w.e.f 27-9-2012 35.90 0.00 0.00 35.90 2.84 (Indian Bank-7 & BoM-1) w.e.f 29-9-2012 14.56 0.00 0.00 14.56 1.15Short Term loan 90.49 85.05 80.52 95.02 14.92 Short Term loan 0.00 579.83 335.10 244.73 52.20 Total 140.95 664.88 415.62 390.21 71.11    Canara Bank 500.00 0.00 500.00 0.00 9.51 Canara Bank 0.00 0.00 0.00 0.00 8.68 IREDA 450.00 0.00 450.00 0.00 5.78 IREDA 500.00 0.00 500.00 0.00 29.89 Indian Bank 50.00 0.00 50.00 0.00 0.21 Bank of India 1000.00 0.00 1000.00 0.00 4.66 Bank of India 371.76 0.00 371.76 0.00 2.45 Syndicate Bank 455.76 0.00 455.76 0.00 9.64

2828

Financial Institute Opening

Balance of Loan

Addition of Loan

during the year

Loan Repayment during the year

Closing Balance of Loan

Interest Expenses

Vijaya Bank 182.10 0.00 182.10 0.00 0.35 Dena Bank 0.00 150.00 150.00 0.00 0.50 Dena Bank 0.00 650.00 650.00 0.00 6.26 Dena Bank 0.00 650.00 650.00 0.00 3.71 Dena Bank 0.00 650.00 650.00 0.00 5.97 Dena Bank 0.00 650.00 650.00 0.00 5.97 South Indian Bank 0.00 100.00 100.00 0.00 1.55 Vijaya Bank 0.00 300.00 0.00 300.00 1.75 Canara Bank 0.00 700.00 700.00 0.00 4.81 Canara Bank 0.00 800.00 800.00 0.00 5.50 Canara Bank 0.00 700.00 700.00 0.00 3.38 Canara Bank 0.00 800.00 800.00 0.00 3.68 Canara Bank 0.00 1500.00 1500.00 0.00 8.80 Canara Bank 0.00 1500.00 1500.00 0.00 8.49 Canara Bank 0.00 300.00 300.00 0.00 3.55 Canara Bank 0.00 400.00 400.00 0.00 4.65 Canara Bank 0.00 500.00 500.00 0.00 6.12 Canara Bank 0.00 300.00 300.00 0.00 3.61 Canara Bank 0.00 600.00 600.00 0.00 3.82 Canara Bank 0.00 400.00 400.00 0.00 2.56 Canara Bank 0.00 200.00 200.00 0.00 1.28 Canara Bank 0.00 300.00 300.00 0.00 1.82 Canara Bank 0.00 300.00 0.00 300.00 1.58 Canara Bank 0.00 300.00 0.00 300.00 1.51 Canara Bank 0.00 300.00 0.00 300.00 1.18 Canara Bank 0.00 300.00 0.00 300.00 0.39 Canara Bank 0.00 300.00 0.00 300.00 0.07 Syndicate Bank 0.00 500.00 500.00 0.00 8.52 Syndicate Bank 0.00 500.00 500.00 0.00 6.21 Syndicate Bank 0.00 500.00 500.00 0.00 1.50 Syndicate Bank 0.00 1000.00 1000.00 0.00 6.15 Syndicate Bank 0.00 1000.00 1000.00 0.00 5.55 Syndicate Bank 0.00 409.00 409.00 0.00 2.52 Syndicate Bank 0.00 300.00 300.00 0.00 1.91 Syndicate Bank 0.00 541.00 541.00 0.00 3.45 Syndicate Bank 0.00 400.00 400.00 0.00 2.47 Syndicate Bank 0.00 241.00 241.00 0.00 1.49

2829

Financial Institute Opening

Balance of Loan

Addition of Loan

during the year

Loan Repayment during the year

Closing Balance of Loan

Interest Expenses

Syndicate Bank 0.00 609.00 609.00 0.00 4.13 Syndicate Bank 0.00 441.00 441.00 0.00 2.90 Syndicate Bank 0.00 200.00 200.00 0.00 1.27 Syndicate Bank 0.00 600.00 600.00 0.00 3.82 Syndicate Bank 0.00 650.00 650.00 0.00 4.01 Syndicate Bank 0.00 595.00 595.00 0.00 3.79 Syndicate Bank 0.00 300.00 300.00 0.00 0.53 Syndicate Bank 0.00 355.00 355.00 0.00 0.47 Syndicate Bank 0.00 295.00 0.00 295.00 1.67 Syndicate Bank 0.00 300.00 0.00 300.00 1.70 Syndicate Bank 0.00 300.00 0.00 300.00 1.50 Syndicate Bank 0.00 200.00 0.00 200.00 1.00 Syndicate Bank 0.00 155.00 0.00 155.00 0.78 IREDA 0.00 200.00 200.00 0.00 11.73 IREDA 0.00 450.00 450.00 0.00 15.10 Indian Bank 0.00 500.00 500.00 0.00 9.30 Indian Bank 0.00 230.00 230.00 0.00 0.68 Indian Bank 0.00 500.00 500.00 0.00 6.39 Indian Bank 0.00 500.00 0.00 500.00 3.76 Bank of India 0.00 700.00 700.00 0.00 5.78 Bank of India 0.00 170.00 170.00 0.00 1.44 Bank of India 0.00 130.00 130.00 0.00 0.90 Gadchiroli DCC Bank 0.00 100.00 100.00 0.00 2.22 HDFC Bank 0.00 25.00 25.00 0.00 0.16 Bank of India 0.00 250.00 250.00 0.00 1.95 Bank of India 0.00 250.00 250.00 0.00 1.95 Less Intt Capitalised 0.00 0.00 0.00 0.00 -80.59

Total 3509.6228046.

00 28005.62 3550.00 211.79 Intt on CC/OD (WC)         315.75 Total Working Capital         598.65

FY 2018-19

2830

Financial Institute

Opening

Balance of Loan

Addition of Loan

during the year

Loan Repaym

ent during

the year

Closing Balanc

e of Loan

Interest Expenses

Indian Bank-7 & BoM-1) w.e.f 27-9-2012 35.90 - - 35.90 2.98 Indian Bank-7 & BoM-1) w.e.f 29-9-2012 14.56 14.56 1.21 Short Term Loan 95.02 206.84 194.63 107.23 7.58 Short Term Loan 236.90 214.89 43.84 407.95 28.74 Total 382.38 421.72 238.47 565.63 40.51 Vijaya Bank 300 0 300 0 0.2597Canara Bank 300 0 300 0 0.3945Canara Bank 300 0 300 0 0.526Canara Bank 300 0 300 0 0.7891Canara Bank 300 0 300 0 1.6438Canara Bank 300 0 300 0 1.7096Syndicate Bank 295 0 295 0 3.2769Syndicate Bank 300 0 300 0 3.4632Syndicate Bank 300 0 300 0 3.2671Syndicate Bank 200 0 200 0 2.2652Syndicate Bank 155 0 155 0 1.8231Indian Bank 500 0 500 0 2.9034Bank of India 0 500 500 0 10.6493Bank of India 0 80 80 0 1.6854Bank of India 0 250 250 0 5.3877Bank of India 0 150 150 0 3.1975Bank of India 0 220 220 0 4.535Bank of India 0 400 400 0 7.223Bank of India 0 150 150 0 2.1525Bank of India 0 120 120 0 1.2224Bank of India 0 300 300 0 1.1946Bank of India 0 300 300 0 1.1946Bank of India 0 60 60 0 1.2797Bank of India 0 98 98 0 2.0902Bank of India 0 200 200 0 0.7151Bank of India 0 250 0 250 4.267Vijaya Bank 0 500 500 0 10.048Vijaya Bank 0 200 200 0 4.0233Vijaya Bank 0 200 200 0 4.0022Vijaya Bank 0 100 100 0 2.0238Vijaya Bank 0 200 200 0 4.0504

2831

Financial Institute

Opening

Balance of Loan

Addition of Loan

during the year

Loan Repaym

ent during

the year

Closing Balanc

e of Loan

Interest Expenses

Vijaya Bank 0 200 200 0 4.1208Vijaya Bank 0 100 100 0 2.0373Vijaya Bank 0 200 0 200 2.6082Vijaya Bank 0 200 0 200 2.2356Vijaya Bank 0 100 0 100 0.8151Canara Bank 0 300 300 0 1.9726Canara Bank 0 300 300 0 1.8411Canara Bank 0 300 300 0 1.9726Canara Bank 0 300 300 0 1.841Canara Bank 0 300 300 0 2.0384Canara Bank 0 300 300 0 2.0511Canara Bank 0 300 300 0 1.9849Canara Bank 0 300 300 0 2.0511Canara Bank 0 300 300 0 2.0511Canara Bank 0 300 300 0 2.0096Canara Bank 0 300 300 0 1.9426Canara Bank 0 300 300 0 2.0096Canara Bank 0 300 300 0 1.9426Canara Bank 0 1.2 1.2 0 0.8038Canara Bank 0 300 300 0 2.0638Canara Bank 0 300 300 0 1.9307Canara Bank 0 300 300 0 1.9973Canara Bank 0 80 80 0 0.5504Canara Bank 0 100 100 0 0.6879Canara Bank 0 120 120 0 0.8255Canara Bank 0 300 300 0 2.0893Canara Bank 0 300 300 0 2.0219Canara Bank 0 300 300 0 2.0219Canara Bank 0 150 150 0 1.0447Canara Bank 0 110 110 0 0.7167Canara Bank 0 300 300 0 1.8197Canara Bank 0 300 300 0 2.0219Canara Bank 0 300 300 0 1.9545Canara Bank 0 200 200 0 1.303Canara Bank 0 300 300 0 1.8872Canara Bank 0 250 250 0 1.7411Canara Bank 0 129 129 0 0.8984

2832

Financial Institute

Opening

Balance of Loan

Addition of Loan

during the year

Loan Repaym

ent during

the year

Closing Balanc

e of Loan

Interest Expenses

Canara Bank 0 80 80 0 0.5606Canara Bank 0 120 120 0 0.8408Canara Bank 0 300 300 0 2.1021Canara Bank 0 750 750 0 0.5255Canara Bank 0 200 200 0 1.4014Canara Bank 0 186 186 0 1.2612Canara Bank 0 160 160 0 1.0488Canara Bank 0 50 50 0 0.3165Canara Bank 0 200 200 0 1.3562Canara Bank 0 75 75 0 0.4747Canara Bank 0 54 54 0 0.3662Canara Bank 0 200 200 0 0.6674Canara Bank 0 200 200 0 0.4767Canara Bank 0 200 200 0 1.2658Canara Bank 0 150 150 0 0.9493Canara Bank 0 221 221 0 1.3987Canara Bank 0 75 75 0 0.5255Canara Bank 0 125 125 0 0.8759Canara Bank 0 200 200 0 1.3562Canara Bank 0 200 200 0 1.3562Canara Bank 0 50 50 0 0.3278Canara Bank 0 79 79 0 0.5536Canara Bank 0 200 200 0 1.311Canara Bank 0 150 150 0 1.051Canara Bank 0 200 200 0 1.4013Canara Bank 0 200 200 0 1.4013Canara Bank 0 21 21 0 0.1424Canara Bank 0 200 200 0 1.4013Canara Bank 0 200 200 0 1.4013Canara Bank 0 79 79 0 0.5421Canara Bank 0 200 200 0 1.4184Canara Bank 0 50 50 0 0.3317Canara Bank 0 200 200 0 1.2811Canara Bank 0 150 150 0 0.9608Canara Bank 0 200 200 0 1.2811Canara Bank 0 200 200 0 1.2811Canara Bank 0 21 21 0 0.1345

2833

Financial Institute

Opening

Balance of Loan

Addition of Loan

during the year

Loan Repaym

ent during

the year

Closing Balanc

e of Loan

Interest Expenses

Canara Bank 0 200 200 0 1.2811Canara Bank 0 200 200 0 1.2811Canara Bank 0 79 79 0 0.506Canara Bank 0 150 150 0 0.9608Canara Bank 0 100 100 0 0.6405Canara Bank 0 150 150 0 0.9608Canara Bank 0 200 200 0 1.2811Canara Bank 0 200 200 0 1.1896Canara Bank 0 200 0 200 1.2353Canara Bank 0 121 0 121 0.7197Canara Bank 0 100 0 100 0.5948Canara Bank 0 79 0 79 0.253Canara Bank 0 36.53 0 36.53 0.1003Canara Bank 0 113.47 0 113.47 0.2596Canara Bank 0 100 0 100 0.1601Canara Bank 0 100 0 100 0.1601Canara Bank 0 50 0 50 0.0686Canara Bank 0 200 0 200 0.2288Canara Bank 0 200 0 200 0.183Canara Bank 0 200 0 200 0.0915Syndicate Bank 0 295 295 0 1.4964Syndicate Bank 0 200 200 0 1.2351Syndicate Bank 0 300 300 0 1.6541Syndicate Bank 0 300 300 0 1.6541Syndicate Bank 0 155 155 0 1.0255Syndicate Bank 0 295 295 0 1.8217Syndicate Bank 0 300 300 0 1.9849Syndicate Bank 0 300 300 0 1.9849Syndicate Bank 0 200 200 0 1.3233Syndicate Bank 0 250 250 0 1.6188Syndicate Bank 0 200 200 0 1.3397Syndicate Bank 0 300 300 0 1.7416Syndicate Bank 0 250 250 0 1.6747Syndicate Bank 0 200 200 0 1.2504Syndicate Bank 0 300 300 0 1.9426Syndicate Bank 0 200 200 0 1.3726Syndicate Bank 0 250 250 0 1.6586

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Financial Institute

Opening

Balance of Loan

Addition of Loan

during the year

Loan Repaym

ent during

the year

Closing Balanc

e of Loan

Interest Expenses

Syndicate Bank 0 150 150 0 1.0295Syndicate Bank 0 150 150 0 1.0295Syndicate Bank 0 200 0 200 2.8611Syndicate Bank 0 200 0 200 2.6671Syndicate Bank 0 250 0 250 3.2127Syndicate Bank 0 50 0 50 0.5941Syndicate Bank 0 50 0 50 0.5671Indian Bank 0 500 500 0 2.3589Gadchiroli DCC Bank 0 100 0 100 1.1967Less- Capitalization         -56.66

Total 355027988.

2 28438.2 3100 192.30Interest on WCDL/CC         404.58MTL from REC for Working Capital       0.42 Total         637.81

Reply to Query No. 15 regarding the reconciliation of lease rent claimed and actual lease rent as per the audited accounts. submitted vide letter dated 2 December, 2019

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Station-wise Lease rent accounted for in the books of accounts

Amount as per MERC

order

Less: Straight-

lining impact

Amount as per books

Amount as per MERC

order

Less: Straight-

lining impact

Total after straight-lining

GST @18% for FY 2018-19 on amount as per

MERC

GST @ 18% for one quarter of FY 17-18 on

amount as per MERC order

Grand Total including GST (Amount after

straight lining + GST) as per

books

Amount as per MERC

order

Less: Straight-lining impact

Total after straight-lining

GST @18% on amount as per MERC

Grand Total including GST (Amount after

straight lining + GST) as per

books

1 2 3 4 = 2 - 3 5 6 7 = 5 - 6 8 =18% @ 5 9 = 18% @ 2 for one quarter 10 = 7 + 8 + 9 11 12 13 = 11 - 12 14 = 18% @

11 15 = 13 + 14

1 Koyna Stage I& II

10.6 -0.2 10.8 10.5 -0.3 10.8 1.9 0.5 13.2 10.4 -0.4 10.8 1.9 12.7

2 Koyna StageIII

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

3 Koyna StageIV

276.9 20.5 256.4 271.6 15.3 256.4 48.9 12.5 317.7 266.4 10.0 256.4 48.0 304.3

4 Koyna DamFoot P.H.

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

5 Vaitarna 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.06 Radhanagri 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.07 Yeldari 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.08 Veer 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.09 Bhat ghar 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

10 Paithan -0.4 0.4 -0.8 -0.3 0.5 -0.8 -0.1 0.0 -0.8 0.0 0.0 0.0 0.0 0.011 Tillari -1.1 1.1 -2.1 -0.6 1.5 -2.1 -0.1 0.0 -2.3 -0.1 2.0 -2.1 0.0 -2.212 Bhira T.R 2.6 0.4 2.3 2.8 0.6 2.3 0.5 0.1 2.9 3.0 0.8 2.3 0.5 2.813 Ujjani 12.3 0.3 12.0 12.0 0.0 12.0 2.2 0.6 14.7 11.8 -0.3 12.0 2.1 14.114 Vaitarna D.T. 0.1 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.115 Bhatsa -7.1 0.0 -7.1 -6.7 0.3 -7.1 -1.2 -0.3 -8.6 -6.4 0.7 -7.1 -1.2 -8.216 Panshet&

Varasgaon-3.7 0.0 -3.7 -3.5 0.2 -3.7 -0.6 -0.2 -4.5 -3.2 0.5 -3.7 -0.6 -4.3

17 Pawana 0.9 0.0 0.9 1.0 0.0 0.9 0.2 0.0 1.1 1.0 0.1 0.9 0.2 1.118 Kanher -10.4 0.0 -10.3 -9.9 0.4 -10.3 -1.8 -0.5 -12.6 -9.5 0.9 -10.3 -1.7 -12.019 Dhom -11.5 -0.2 -11.3 -11.0 0.3 -11.3 -2.0 -0.5 -13.8 -10.6 0.7 -11.3 -1.9 -13.220 Manikdoh 4.9 0.3 4.6 4.8 0.2 4.6 0.9 0.2 5.7 4.7 0.1 4.6 0.8 5.421 Dimbhe 3.9 0.3 3.6 3.8 0.2 3.6 0.7 0.2 4.5 3.7 0.1 3.6 0.7 4.322 Warna 9.0 0.6 8.4 8.8 0.4 8.4 1.6 0.4 10.4 8.6 0.3 8.4 1.6 9.923 Surya 6.6 0.6 6.0 6.5 0.5 6.0 1.2 0.3 7.4 6.3 0.3 6.0 1.1 7.124 Surya RB 2.0 0.1 1.8 1.9 0.1 1.8 0.3 0.1 2.2 1.9 0.1 1.8 0.3 2.225 Terwanmedhe 0.6 0.0 0.5 0.5 0.0 0.5 0.1 0.0 0.6 0.5 0.0 0.5 0.1 0.626 Dudhganga 13.3 1.0 12.3 13.0 0.8 12.3 2.3 0.6 15.2 12.8 0.5 12.3 2.3 14.627 Ghatghar 205.1 37.2 167.9 197.9 30.0 167.9 35.6 9.2 212.7 190.7 22.8 167.9 34.3 202.2

Total 514.5 62.4 452.08 503.2 51.1 452.1 90.6 23.2 565.8 492.1 39.3 452.8 88.6 541.4

Power StationSr. No.

FY 2017-18 FY 2018-19 FY 2019-20

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Reply to Query No 62 regarding justification for the claimed additional capitalisation in accordance with the provisions of the MERC Tariff Regulations, 2015.Reply: Reply:: As per submission in Table 57, the overall capitalisation (DPR schemes + non-DPR schemes + additional capitalisation for new units viz. Koradi Units 8, 9 & 10, Chandrapur Units 8 & 9 and Parli Unit 8) approved by the Hon’ble Commission is Rs 1387.71 crore. The additional capitalisation is towards the balance capital works in these new stations. As against the approved expenditure, the overall proposed capitalisation is Rs 1666.40 crore. MSPGCL requests the Hon’ble Commission to kindly consider the submissions and allow the proposed capitalisation submitted in the petition.

Reply to Query no 63 Regarding (Query No 17 Replied on 2.12.2019) Justification for the variation in claimed O&M expenses vis-à-vis the approved O&M expenses for each station. Reply : MSPGCL submits that the Tariff Regulations allows the O & M expenses under two mechanisms. For the existing stations, the historical cost (normative) is considered and then escalated based on movement in CPI: WPI indices during the relevant period. For the new stations, the expenses are allowed as Rs Lakhs/MW and the expenses are explicitly provided in the Regulations.

The comparison of actual vis-à-vis the normative expenses for 2016-17 is provided in the table below:

Station/UnitApproved on

true-upActual O&M expenses

Deviation

Bhusawal 136.04 104.73 31.31Chandrapur 459.97 565.56 -105.60Khaperkheda 225.01 273.87 -48.87Koradi 236.37 194.73 41.64Nashik 243.68 264.79 -21.12Uran 69.62 90.37 -20.75Hydro 159.55 235.21 -75.66Sub-total 1530.24 1729.28 -199.03Paras Units 3 & 4 119.00 169.51 -50.51Parli Units 6 & 7 119.00 156.64 -37.64Khaperkheda Unit 5 77.95 99.17 -21.22

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Bhusawal Units 4 & 5 155.90 254.22 -98.32Koradi Units 8, 9 & 10 142.48 206.65 -64.17Chandrapur Units 8 & 9 91.62 118.24 -26.62Parli Unit 8 21.68 17.44 4.24Sub-total 727.63 1021.85 -294.23Total 2257.87 2751.13 -493.26

For approval of O & M expenses for 2017-18 and 2018-19 for old stations, the Hon’ble Commission has considered the approved O & M expenses for 2016-17 which were lower than the actual expenses in 2016-17 by ~Rs 200 crore. Accordingly, in the future years i.e. 2017-18, 2018-19 and 2019-20, the approved expenses are likely to be lower than actuals. A comparison of O & M expenses of the old stations vis-à-vis the normative expenses (in Rs Crore) for 2018-19 is provided below for reference:

Station/UnitApproved

Actual Gap Normative O&M expensesBhusawal 79.39 87.99 -8.60Chandrapur 500.09 519.30 -19.20Khaperkheda 244.63 225.97 18.67Koradi 174.25 165.41 8.84Nashik 264.94 236.15 28.79Uran 75.69 73.39 2.31Hydro 173.47 195.21 -21.74Sub-total 1512.47 1503.41 9.06

As may be observed, the variation between normative and actual expenses for the old stations is a bare Rs 9 crore.For the new stations, it is submitted that the norms approved by the Hon’ble Commission are far lower than the normative O & M expenses approved by the Hon’ble CERC. A comparison of the norms is provided below for reference:

Capacity CERC MERC

FY 18 FY 19 FY 18 FY 19250 MW 30.51 32.96 26.24 27.55500 MW 20.43 22.51 17.19 18.05660 MW and above 18.38 20.26 15.47 16.24

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MSPGCL submits that man-power requirements in the some of the new units is getting fulfilled in the ensuing years. Therefore, man-power from some of the old retiring units is being shifted to new power stations. Accordingly, the gap between actual and normative O & M expenses in the new stations has increased on an overall basis. However, in case CERC approved norms would have been considered, the deviation between actual expenses and normative expenses would have been significantly lower as shown in the table below:

Stations Capacity FY 18-19CERC NORMS MERC NORMS ACTUAL

Paras Units 3 & 4 2*250 152.55 131.2 164.89Parli Units 6 & 7 2*250 152.55 131.2 154.88Khaperkheda Unit 5 500 102.15 85.95 115.25Bhusawal units 4 & 5 2*500 204.3 171.9 243.26Koradi Units 8, 9 & 10 3*660 351.79 296.1 333.54Chandrapur Units 8 & 9 2*500 204.3 171.9 215.93Parli Unit 8 250 76.275 65.6 62.92Grand Total   1243.92 1053.85 1290.67

As may be observed, the difference between normative O & M expenses between CERC an MERC regulations is ~Rs 190 crore whereas the difference between CERC norms and actual is barely Rs 47 crore. MSPGCL therefore requests the Hon’ble Commission to kindly consider the norms approved by the Central Commission and relax the normative O & M expenses for such new stations. Reply to Query No 88 regarding detailed justification for the proposed capitalisation for each year of the Control Period for each station separately in accordance with the provisions of the MERC MYT Regulations, 2019. Reply: MSPGCL submits that Tariff Regulations 2015 provided as follows:

“24.3.The capital expenditure, in respect of existing generating Station or the transmission system including communication system, incurred or projected to be incurred on the following counts after the cut-off date, may be admitted by the Commission, subject to prudence check:

2839

vii) Any additional capital expenditure which has become necessary for efficient operation:”

It is submitted that such provisions enabled MSPGCL to implement schemes which are essential for upkeep and sustaining the efficiency level of the generating stations. It is on account of such measures that no degradation in performance parameters is envisaged over the life of the assets. However, in the Tariff Regulations 2019, 25.2(v) provides as follows: “25.2 The capital expenditure incurred or projected to be incurred in respect of a new Project on the following counts within the original scope of work after the cut-off date may be admitted by the Commission, subject to prudence check:

v) Any additional capital expenditure which has become necessary for efficient operation:”

It may be observed that the provision although is similar to that provided in the Tariff Regulations 2015, however, it specifically mentions such expenditure for new units. MSPGCL submits that relatively new units may not require such expenditure and it is more relevant for the old units who may require more expenditure for sustaining the operational efficiency.

MSPGCL has been submitting the DPRs for various schemes and the Hon’ble Commission has accorded approval to such proposed expenses in the past. For the proposed expenditure, MSPGCL shall be submitting the DPRs in due course of time. It is also submitted that the proposed capital expenditure is inclusive of FGD system.

2840