MPPGCL sgtps500mw Final Tariff Petition 58 12 PDF

M.P. POWER GENERATING COMPANY LTD.
PETITION FOR APPROVAL OF FINAL GENERATION

TARIFF
(PERIOD FROM 28/08/2008 to 31/03/2012 )
OF
Sanjay Gandhi Thermal Power Station

500 MW, Extn. Unit No.5
U/s 62 and 86 (1)(a) of the Electricity Act, 2003

PETITION NO.:_________
MPPGCL, SHAKTI BHAWAN, RAMPUR, JABALPUR - 482008
Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

Jul 2012
INDEX
S.No. PARTICULARS
PAGE No.
1. AFFIDAVIT
3-4
2. AUTHORIZATION
3.
PETITION
6- 16
4.
PRAYER
17
5. INDEX OF CHAPTERS
18
6. CHAPTER 1 to 17
19-57
7. INDEX OF FORMS
58
8. FORMS
59-86
9. ANNEXURES
Attached as booklet
M.P. Power Generating Co. Ltd

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BEFORE THE M.P. ELECTRICITY REGULATORY COMMISSION

BHOPAL
Filing No
Petition No.
of 2012
IN THE MATTER OF
Approval of final Generation Tariff for 500 MW,

SGTPS Ext. Unit No.5, Birsinghpur for the period
28/08/2008 to 31/03/2012 under Section 62 and 86
(1)(a) of the Electricity Act, 2003
PETITIONER
M.P. Power Generating Company Ltd, Jabalpur.
RESPONDENT
1. M.P. Power Management Company Ltd., Jabalpur

2. M.P. Poorv Kshetra Vidyut Vitaran Company
Ltd., Jabalpur
3. MP Madhya Kshetra Vidyut Vitaran Company
Ltd., Bhopal
4. MP Paschim Kshetra Vidyut Vitaran Company
Ltd., Indore
5. M.P. Power Transmission Co. Ltd. Jabalpur.
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 increasing 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.

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3.
The activities of Generation, Transmission and Distribution have been

looked after earlier in the State of M.P. by the integrated utility i.e. MPSEB
constituted under Section 5 of Electricity (Supply) Act 1948. The
Government of MP enacted M.P. Vidyut Sudhar Adhiniyam 2000 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 and they worked as agent of MPSEB from July 2002 to May 2005.
The companies started independent functioning w.e.f. 1.6.2005 under Cash
flow mechanism as per State Government order dated 31.5.2005.
5.
A sixth Company, namely MP Power Trading Company Ltd, was

incorporated as per the State Governments Notification dated 03/06/2006
specifying the functions of TRADECO for purchase of electricity in bulk
from Generating companies /Traders, from within & outside the State and to
supply electricity in bulk to the Electricity Distribution Companies in the
State of Madhya Pradesh. GoMP vide letter No. 6074/13/12/02 dated
29/03/12 has changed the name of M.P. Power Trading Co. Ltd. to M.P.
Power Management Co. Ltd. and it has been made the holding company for
all the DISCOMS of M.P. Further, GoMP, vide its Notification dated 26th
April 2012, has merged M.P. State Electricity Board with M.P. Power
Management Co. Ltd.
6.
The Petitioner is having various power stations/projects in the state of

Madhya Pradesh. Sanjay Gandhi Thermal Power Station (SGTPS) is one
such coal based power stations of the Petitioner located at Birsinghpur in
Umaria District of Madhya Pradesh. Earlier it was envisaged to install 6

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units of 210MW each at SGTPS Birsinghpur out of which 4 Units of 210

MW were commissioned. However, with the advent of technology and
availability of 500 MW Units in the country, it was decided by erstwhile
MPSEB to set up 1x500 MW capacity in lieu of 2x210 MW Units in the
Stage-III of the project, in the space available in the Birsinghpur Plant site.
7.
Administrative approval for setting up of the 500 MW Unit at Sanjay

Gandhi Thermal Power Station, Birsinghpur was accorded by Government
of Madhya Pradesh vide letter No. 10197/F-3/31/13/97 dated 24/12/1997
(Annexure-1). Techno-economic clearance to the project was granted by
CEA vide O.M. No. 2/MP/46/96-PAC/11280 302 dated 20/12/2002 at a
total estimated cost of Rs. 2093.75 Crore (Annexure-2). This estimated
approved project cost of Rs. 2093.75 Cr. has been revised to Rs. 2300 Cr and
the same has been approved by GoMP, vide letter No. 3193/13/2007 dated
04/05/2007 (Annexure-3).
8.
GoMP vide its notification dated 3rd Jun 2006 has provided that the
Petitioner will sell entire power generated by the Sanjay Gandhi Thermal
Power Station to the MP Power Trading Company Ltd., now M.P. Power
Management Company Ltd., Respondent 1, at a rate determined by Honble
MPERC. A Power Purchase Agreement to this effect signed between
MPPGCL and MP Tradeco on 29th Nov 2006 has already been submitted to
the Honble Commission on 30th Nov 2006.
9.
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 a generating company. The Honble Commission is vested with
the jurisdiction to regulate the tariff of Generating Companies owned or
controlled by a State Government and other Generating Companies as
envisaged under Section 86(1)(a) & (b) of Electricity Act, 2003.
10.
500 MW SGTPS Extn. Unit-5, Birsinghpur, was synchronized on

18/06/2007 and its COD was envisaged w.e.f. Nov, 2007. Accordingly, a
petition, No. 51/2007 dated 19/09/2007, was filed before the Honble
Commission for determination of provisional generation tariff of 500 MW
SGTPS Extn. Unit, in accordance to MPERC (Terms and Conditions for
Determination of Generation Tariff) Regulation 2005 (G-26 of 2005).
11.
However, during the hearing held in the matter at MPERC on 30/10/2007,

the Commission rejected the request of the Petitioner for approval of
provisional tariff. The Commission observed that the Unit had not started

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commercial generation and as such opined that till the Unit starts generating
electricity commercially, the Commission may consider allowing the cost of
Infirm Power injected into the grid on the basis of fuel and employee related
expenses. The Commission, therefore, directed the Petitioner to file the cost
of fuel, i.e., cost of coal and oil used exclusively for generation of electricity
from the subject Unit along with the expenditure made by the company on
the employees working in the Unit (Annexure-4). In compliance, the
Petitioner submitted before MPERC, vide letter dated 27/11/2007, the actual
fuel cost and other costs for the 500 MW Unit.
12.
The Honble Commission, vide its order dated 18/01/2008 (Annexure-5),

disapproved the Petitioners request for approval of provisional tariff stating
that the Unit has not started generating electricity commercially, however
the Commission allowed the Petitioner recovery of Infirm Power charges,
till CoD of the Unit, as per the latest Regulations/ amendments/
clarifications issued by CERC. The Honble Commission also directed the
Petitioner to file the petition for determination of provisional tariff for 1x500
MW Extn. Unit at SGTPS, Birsinghpur, as soon as COD of the Unit was
achieved.
13.
The State Load Dispatch Centre (SLDC) raised objection over the date of
effectiveness of the order passed by the Honble Commission dated
18/01/2008 under Petition No. 51/2007. The Petitioner, vide its letter dated
18/08/2008 (Annexure-6), informed the Commission regarding SLDCs
objection that since the CERC order, referred by the Honble Commission in
its order dated 18/01/2008, came into force from 07/01/2008 therefore its
retrospective effect could not be allowed from October 2007. The Petitioner
sought suitable directives of the Honble Commission for computation of
Infirm Power from October 2007.
14.
The Honble Commission, vide its order dated 20/10/2008 (Annexure-7),

upheld SLDCs interpretation, since the applicability of CERC amendment
of regulation 19 of Tariff regulations, which provides accounting of Infirm
Power as UI and its being paid for at the applicable frequency linked UI
rates, was made effective from 07/01/2008. Further, since there was no
regulation in vogue to govern the rate of Infirm Power before the
applicability of the amended regulation of CERC, the Honble Commission
decided to base the cost of Infirm Power prior to 07/01/2008 on CERCs
decision on costing of Infirm Power for Vindhyachal Thermal Power Station

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Stage-III. Accordingly, the Commission allowed the Petitioner to claim the

Infirm Power energy at the rate of 101.35 Paise per kWh, determined by the
Commission in its Order dated 20/10/2008, from the date of synchronization
up to 06/01/2008. Infirm Energy with effect from 07/01/2008 till COD was
allowed to be billed as given in the Commissions order dated 18/01/2008.
15.
COD of 500 MW SGTPS Extn. Unit-5, Birsinghpur, was achieved on

28/08/2009. The Unit supplied Infirm Power of 1573.838 MU in the Grid
during the period from 01/10/2007 to 27/08/2008 and the amount billed for
Infirm Power Generation is Rs.498.41 Crores, in accordance with MPERC
Orders dated 18/01/2008 (Annexure-5) and 20/10/2008 (Annexure-7).
16.
In Compliance to the Honble Commissions directives, given vide its Order

dated 18/01/2008, the Petitioner filed a Petition (No.12/2009) on 24/03/2009
for determination of provisional generation tariff for 500 MW SGTPS Extn.
Unit-5, Birsinghpur, from 28/08/2009, i.e., the Date of Commercial
Operation (COD) to 31/03/2009, as per MPERC (Terms And Conditions For
Determination Of Generation Tariff) Regulations, 2005 (G-26 Of 2005).
17.
A presentation on the tariff proposal of MPPGCL was made by the

Commission before the members of State Advisory Committee on
03/06/2009 and a Public Hearing in the matter was held on 15/09/2009 at
MPERC office Bhopal.
18.
Honble Commission passed an Order dated 24/11/2009 (Annexure-8) and

provisionally allowed the total cost of generation for 500 MW SGTPS Extn.
Unit-5, Birsinghpur, from 28/08/2009 to 31/03/2009, as given below:
SN
Particulars
Unit
Amount
1 Fixed Cost Calculated by MPERC for 216
Rs. Cr.
206.28
Days (28/08/2008 to 31/03/2009)
Rs. Cr.
195.96
2 Amount of Fixed Cost allowed by the
Commission for recovery at Normative
Availability (at 95% of the Fixed Cost
Calculated for 216 Days)
3 Fuel Cost at Normative % PLF
Paise/kWh
98.41
4 MPERC Fee
Rs. Lakh 14.58333
19.
Clause 3.6 of MPERC (Terms And Conditions For Determination Of

Generation Tariff) Regulations, 2005 (G-26 Of 2005) stipulates that for
generating Units/Stations commissioned after 01/04/2006, principles and
norms as prescribed by CERC vide its order dated 26/03/2004 shall be

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applicable. Since the SGTPS Extn. Unit-5, Birsinghpur, was MPPGCLs

first 500 MW Unit and MPPGCL did not have previous experience of
operation and maintenance of 500 MW size Units, the Petitioner in its
Petition for Provisional Tariff (No. 12/2009) had sought relaxed norms of
operation for initial six months. However, Honble Commission did not
consider the Petitioners request on the grounds that as per clause 16 of
CERC Regulations 2004 stabilization period and relaxed norms applicable
during the stabilization period ceased to apply from 01/04/2006.
20.
Therefore, in the instant Petition, for the period FY09 the Petitioner has
considered Norms of operation as prescribed in CERC Regulations 2004.
For FY10 to FY12 the Norms of operation as stipulated in MPERC (Terms
And Conditions For Determination Of Generation Tariff) Regulations, 2009
(RG-26 (I) Of 2009) have been considered.
21.
In the Petition for Provisional Tariff (No. 12/2009), the Petitioner had
submitted a revised project cost estimate of Rs. 2300.00 Crores along with
reasons for revision in the project cost estimate. The Honble Commission
vide its letter No. 1072 dated 29/05/2009 (Annexure-9) had desired some
additional information along with reference documents in respect of the
revised project cost of Rs. 2300 Crores. In compliance, the Petitioner vide
letter No. 240 dated 22/06/2009 (Annexure-10) submitted the information
desired by the Commission. GoMPs approval in respect of the revised
project cost of Rs. 2300 Crore, for 500MW SGTPS Extn. Unit No. 5
Birsinghpur, accorded vide letter No. 3193/13/2007 dated 04/05/2007, was
already submitted by the Petitioner before the Honble Commission.
22.
However, the Honble Commission, in its Order dated 24/11/2009, made an

observation that the Petitioner had not taken approval from CEA for the cost
over-run. The Commission, therefore, decided to take original project cost as
approved by CEA for determination of provisional tariff. The Commission
also directed the Petitioner, vide its aforesaid order, to take approval from
CEA for the cost over-run before filing the petition for final generation
tariff.
23.
During the Public Hearing held in MPERC in Sept 2009 in the matter of
Petition for Provisional Tariff of 500 MW SGTPS Extn. Unit-5, Birsinghpur,
the Petitioner had submitted before the Honble Commission that, after the
implementation of Electricity Act 2003, approval of project cost estimate
from CEA was not mandatory and that since the Petitioner had already

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obtained approval of the State Government for the revised project cost,
approval of CEA should not be insisted.
24.
MPPGCL had filed a petition (No. 54/2009) before the Honble Commission
on 30/09/2009 for approval of generation tariff for the new control period
from FY10 to FY12, under MYT Principles. The Commission while passing
the Order dated 03/03/2010 in the matter, observed in respect of 500MW
SGTPS Extn. Unit No. 5 that since the Petitioner had not filed the petition
for determination of final tariff in respect of the new 500MW SGTPS Extn.
Unit No. 5, the Commission had, therefore, considered capital cost and other
components for the 500MW Unit, in the MYT Order dated 03/03/2010,
same as those provisionally admitted by the Commission in the Provisional
Tariff Order dated 24/11/2009 passed by the Commission in respect of
500MW SGTPS Extn. Unit No. 5. The Commission, therefore, allowed the
petitioner to recover the fixed charges only to the extent of 95% of the fixed
charges for 500MW SGTPS Extn. Unit No. 5 determined in the MYT Order
dated 03/03/2010, on provisional basis subject to retrospective adjustment
on determination of final tariff of the Unit.
25.
In compliance to the Honble Commission directives, given in MPERC

Order dated 24/11/2009, the Petitioner approached CEA, vide letter dated
17/07/2010 (Annexure-11), seeking approval of the revised project cost of
Rs.2300.00 Crores for 500 MW SGTPS Extn. Unit-5, Birsinghpur. CEA,
vide their letter dated 08/11/2010 (Annexure-12), quoting references of
decisions of Honble High Court of Delhi and CERC in similar cases, has
informed that approval of CEA for the project cost estimate of 500 MW
SGTPS Extn. Unit-5, Birsinghpur, is not required.
26.
The Honble Commission in its Order dated 22/03/2012, in the matter of

Petition (No. 55/2011) filed by the Petitioner for True-up of Generation
Tariff for FY 2008-09, observed in respect of 500MW SGTPS Extn. Unit
No. 5 that since the project cost and funding of the new 500MW Unit shall
be finalized in its final tariff order on filing of petition by the Petitioner, any
change in cost on account of 500MW SGTPS Extn. Unit No. 5 was not
considered in the aforesaid True-up Order dated 22/03/2012 for FY 2008-09.
27.
In its petition for determination of provisional tariff (No. 12/2009), the

Petitioner had submitted month wise details of fuel cost incurred during
Infirm Power generation. Honble Commission had observed some
inconsistency in the rate of coal and oil consumed during Infirm Power

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generation as compared with the audited figures for October, November and
December 2007. The Commission, therefore, in its order dated 24/11/2009
(Annexure-8), provisionally computed the cost of fuel during Infirm Power
generation as Rs. 174.21 Crores and directed the Petitioner that the actual
quantity and rate of coal & oil shall be determined and allowed at the time of
final tariff as and when the exact and authentic figures are filed by the
Petitioner. Based on the fuel expenditure provisionally computed as
mentioned above, the Honble Commission, in its order dated 24/11/2009
for provisional tariff, had determined a figure of Rs. 324.20 Crores as the net
revenue from Infirm Power generation.
28.
In compliance to the Honble Commissions directives, audited figures for

fuel expenditure during Infirm Power generation have been filed in the
instant Petition. The amount for fuel expenditure during Infirm Power
generation, as per audited books of accounts of MPPGCL, is Rs.222.80
Crores (Annexure-13). Accordingly, the net revenue earned from Infirm
Power generation is Rs. 275.60 Crores and the same has been applied for
reduction in capital cost as per MPERC Regulations 2005.
29.
The Petitioner has filed this petition for approval of final tariff of 500 MW,
SGTPS Extension Unit-5 w.e.f. its date of commercial operation (COD), i.e.,
28/08/2008, up to 31/03/2012 based on the numbers in the audited books of
accounts of MPPGCL for FY09, FY10 and FY11. Figures for FY12
submitted in the petition are on provisional basis and true-up for the same
shall be done on completion of the balance works of the project and on
finalization of accounts for FY12.
30.
The Petition has been prepared for the period FY09 based on the terms and
conditions of tariff notified by the Honble Commission vide MPERC
(Terms And Conditions For Determination Of Generation Tariff)
Regulations, 2005, {G-26 of 2005} and for the period FY10 to FY12 based
on the terms and conditions of tariff notified by the Commission vide
MPERC (Terms And Conditions For Determination Of Generation Tariff)
Regulations, 2009, {RG-26(I) of 2009}. Necessary formats to be filed with
the petition have been filled in and enclosed with this petition. It is
submitted that the Petitioner has furnished the information/details as
required under the aforesaid formats to the extent the same is available with
the Petitioner. However, the Petitioner submits that where the
data/information has not been submitted as per the format due to its non-

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availability / non-applicability with the petition, the same has been marked
accordingly.
31.
Net revenue earned from the sale of Infirm Power, after accounting for the
fuel expenses for infirm power generation, is Rs. 275.60 Crores and the
same has been applied for reduction in capital cost as on COD. As such the
net capital expenditure towards the project as on COD, as per the audited
books of accounts, is Rs. 1994.23 Crores (Annexure-14). This has been
considered for tariff determination purpose.
32.
Additional capital expenditure after COD up to 31/03/2011, as per audited

books of accounts, is as given below:
Period
a.
b.
c.
33.
Amount
W.E.F. COD
to 31/03/2009
W.E.F. 01/04/2009 to 31/03/2010
W.E.F. 01/04/2010 to 31/03/2011
Total
:
:
:
:
Rs. 3.35 Crs.

Rs. 33.02 Crs.
Rs. 26.45 Crs.
Rs. 62.82 Crs.
As on 31/03/2011, a cumulative amount of Rs. 15.87 Crores which was

spent on capital spares has inadvertently been charged to O&M works of
500 MW SGTPS Extn. Unit No. 5, instead of having been capitalized. Such
cumulative amounts at the end of respective financial Years from COD till
31/03/2011 are as below:
a. As on 31/03/2009
b. As on 31/03/2010
c. As on 31/03/2011
:
:
:
Rs. 1.37 Crores

Rs. 7.00 Crores
Rs. 15.87 Crores
Necessary treatment for capitalizing the cumulative expenditure of Rs.15.87

Crores, as on 31/03/2011, detailed above shall be done in the books of
accounts in subsequent accounting Year.
34.
The additional capital expenditure w.e.f. 01/04/2011 to 31/03/2012,

including the capitalization of amount of Rs.15.87 Crores which was
charged to O&M, is Rs.42.00 Crores (provisional) and that from 01/04/2012
till completion of the project is Rs. 85.35 Crores (projected). Thus the total
additional capital expenditure w.e.f. COD and up to completion of
remaining works, is projected to be Rs.190.17 Crores. The completed project

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cost, including expenditure on works related to Second Phase Ash bund, is

projected to be Rs. 2184.40 Crores against the approved estimated cost of
Rs.2300.00 Crores.
35.
The additional capital expenditure till completion of the Project is within the
original scope of work of SGTPS extension Unit-5 and is in accordance with
the Regulation 19 of MPERC Tariff Regulations, 2005. It is submitted that
the provisional additional capital expenditure from 01/04/2011 to
31/03/2012 and projected additional capital expenditure from 01/04/2012 till
completion of Project, estimated by the Petitioner, may not be considered as
the ceiling expenditure and that the Petitioner may be allowed to
claim/amend the impact of additional capitalization for revision of tariff.
36.
It is further submitted that levies, taxes, duties, service tax, SLDC charges,
water charges, etc, levied by the various authorities on the Petitioner in
accordance with law shall be billed to beneficiaries additionally on actuals.
MPPGCL has not considered any tax liability for FY09, FY10 and FY11,
while for FY12 Minimum Alternate Tax (MAT), including surcharge and cess,
has been considered. In case, due to any 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.
37.
The performance parameters and cost elements have been duly elaborated in
different Chapters as enclosures to the petition. CoD of 500 MW, Sanjay
Gandhi Thermal Power Station Extn. Unit-5 is 28th Aug 2008. As such the
actual generation in FY09 was available only for 216 days.
38.
Accordingly, the Year wise cost of generation works out as given in Table
No. 1, below:-

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Generation Cost of 500 MW SGTPS,

TPS, Extn. Unit No. 5
Table No. 1.
Particulars
Normative Net Generation
Scheduled Generation
Return on Equity (Pre Tax)
Interest and Fin. Charges on Loan
Depreciation
O&M Expenses
Interest Charges on Working
Capital
Cost of Secondary Fuel Oil
Total Fixed Cost
Variable Charges
Other Charges
MPERC Fee
Cess
Water Charges
Rent rates & taxes
Entry Tax
Common expense
Total of Other Charges

Total
Indicative Average Rate
MU
MU
Cr.Rs
Cr.Rs
Cr.Rs
Cr.Rs
Cr.Rs
FY 09 FY10 FY11 FY12 *

1928
3500
3500
3509
1626
3183
3449
3506
47.87 89.55 89.55 111.95
91.38 151.95 148.41 143.39
42.51 104.91 106.28 108.45
60.25
32.40 53.50 56.80
15.36 26.30 29.28
46.45
Cr.Rs
Cr.Rs.
p/u
Cr.Rs
p/u
12.56
229.51
141.18
172.94
106.39
Cr.Rs.
Cr.Rs.
Cr.Rs.
Cr.Rs.
Cr.Rs.
Cr.Rs.
Cr.Rs
Cr.Rs
p/u
0.00
0.25
0.25
0.25
0.00
2.06
1.92
0.78
0.00
0.28
0.39
0.39
0.00
0.01
0.46
0.46
0.00
0.00
0.00
0.00
0.00
1.41
2.00
2.00
0.00
4.01
5.02
3.88
402.45 797.80 915.67 1325.58
247.57 250.68 265.49 378.14
11.23
437.44
137.45
356.35
111.97
12.20
442.51
128.30
468.14
135.73
* Charges for FY12 are provisional as the figures for FY12 are unaudited.

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16.07
486.56
138.80
835.14
238.23

Jul 2012
PRAYER
In light of the above submissions, the Petitioner respectfully prays that
Honble Commission may be pleased to:a. Approve the final tariff of 500 MW, Sanjay Gandhi Thermal Power
Station Extension Unit- 5, as given in Para 38, for the period 28/08/2008 to
31/03/2011 on actual basis and for FY12 on provisional basis which shall
be trued up separately after finalization of audited accounts of FY12.
b. Allow the Petitioner to raise Arrear Bills for the recovery on account of
approved final tariff in accordance with applicable Tariff Regulations.
c. Permit additional recovery on account of Water Charges, Cess, Rent Rates
and Taxes, Duties and Levies, Filing Fee, as and when paid to the Honble
Commission, Common expenses, publication expenses, Entry Tax on
R&M, admissible Income tax as per applicable Tariff Regulations, fringe
benefit tax and any other tax, if payable, etc., on actual basis, over and
above the fixed and variable charges.
d. Permit recovery of expenses understated / not considered in this 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 Honble MPERC finds appropriate in light of the facts
and circumstances of the case, to grant relief to Petitioner.
Date : 25/07/2012
Place: Jabalpur
(S.K. Khiani)
Addl. C.E. (Corporate Services)
For & on behalf of
M. P. Power Generating Co. Ltd.

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INDEX OF CHAPTERS
S. No.
Chapter
Page
Introduction of 500 MW SGTPS Extn. Unit No.5.
19-26
Project Cost Estimates & Actual Capital Expenditure
27-33
Funding of the Project
34-36
Norms of Operation
37
Components of Tariff
38
Return on Equity
39-40
Interest & Finance charges
41
Depreciation
42-45
O&M Expenses
46-47
10
Interest on Working Capital
48-49
11
Cost of Secondary Fuel Oil Consumption
50
12
Energy Charges (Variable Charges)
51-52
13
53
14
Prior Period Expenses and Expenditure on Terminal Benefits

including Pension
Other Expenses
15
Actual Generation
55
16
Cost of Generation and Billing
56
17
Tariff Formats
57

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1. Introduction of 500MW
500MW SGTPS
SGTPS Extn.Unit
Extn.Unit #5
1.1
Sanjay Gandhi Thermal Power Station (SGTPS) is located in Umaria, District

of Madhya Pradesh. Initially it was envisaged to install 6 coal based units of
210MW each at SGTPS Birsighpur, in stages. However, with the advent of
technology and availability of 500 MW size Units in the country, it was
decided by erstwhile MPSEB to set up one 500 MW Unit in lieu of 2*210
MW, fifth and sixth Units, in the space available at SGTPS Birsinghpur.
Accordingly the project was taken up after obtaining requisite following
clearances:
Administrative approval of State Govt. vide letter No. 10197/F-3/31/13/97
dated 24/12/97 for setting up of 1 x 500 MW additional unit at Sanjay

Gandhi Thermal Power Station, Birsinghpur.(Annexure-1)
Approval for supply of Water by Deptt. Of Water Resources vide No.
29/12/96/M/31/399 dated 26/4/2002 from River Johilla.(Annexure-15)

Approval of M.P.P.C.B. No. 1558/TS/MPPCB/2002 dated 13/9/2002
granting permission to establish the Unit. (Annexure-16)

Environmental clearances from Ministry of Environmental and Forest,
vide their letter dated 19/07/2002.(Annexure-17 )

Approval of S.L.C. for grant of linkage of coal from Korba Coalfields,
vide O.M. dated 16/01/2001. (Annexure-18)

Techno-economic clearance of the project granted by CEA vide O.M. No.
2/MP/46/96-PAC/11280302 dated 20/12/2002. (Annexure-2)

Civil Aviation Clearance from Airport Authority of India for a Chimney
with height of 275 M vide letter No. AAI/NAD/ 20012/35/9-ARI dated

26.11.97 and subsequent extension. (Annexure-19)
1.2
Since, 500 MW Unit was to be located within the existing plant boundary of
SGTPS, as an extension to the existing power station, major land which was
already acquired earlier in Phase-I has been used for installation of main plant
and equipment. However, due to change in the scheme of Coal Handling Plant
and for laying of ash pipe line, forest land to the tune of 4.7 Ha was additionally
required. The same was granted by MoEF, Regional office, Bhopal in May 2004.

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Jul 2012
Against our requirement of 292 Ha of forest land for ash disposal, Department of
Agriculture & Co-operation, Ministry of Agriculture, had allowed 100 Ha of
land in PhaseI of SGTPS, and also agreed to consider balance 192 Ha of land in
further two phases, so as to avoid large number of trees from being clear felled at
one time and also to avoid excessive soil erosion. The Forest Department
awarded another 100 Ha of Forest land in Nov.2006, for the 2nd phase of Ash
Bund.
1.3
With the addition of 500 MW capacity at SGTPS, Birsinghpur, the total

capacity of the station became 1340MW and it thus became the largest
Thermal Power Station of MPPGCL.
1.4
Major Systems of SGTPS 500 MW Extn, Unit No.5

Brief description of some of the major systems of SGTPS 500 MW Extn. Unit
No. 5 is given below:1.4.1
Steam Generator
The steam generator is outdoor, two pass, tap supported, reheat,
controlled circulation, single drum, balanced draft, dry bottom type
designed for burning pulverized coal as principle 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 bypass system. Four regenerative air pre-heaters with electric motor
main drive and air motor as standby drive are provided at back end,
which are connected with gas duct bifurcated to two air heaters.
The boiler is provided with a set of soot blowers for on load
cleaning of heat transfer surfaces i.e. water walls, super heaters, reheaters, economizers and air heaters.
1.4.2
Boiler Feed Pump

Three number of Boiler Feed Pumps each having 50 % capacities,
horizontal, multistage, barrel casing, centrifugal type are provided. Out

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Jul 2012
of three pumps two are steam driven and one is electrically driven.
Each pump is supported by a single stage booster pump.
1.4.3
Milling Plant
The boiler is provided with 10 (8+2) Bowl Mills type XRP 1003, with 5 on
either side. Three Nos. primary fans of axial reaction single suction type,
driven by direct coupled motors are also provided.
1.4.4
Electrostatic Precipitator
The steam generating unit is provided with one set of Electrostatic
Precipitator having four passes. Each pass comprises of nine fields in
series for collection of fly ash, of which, eight fields would be in
service and the other one would remain as standby. The ESP is having
adequate number of ash hoppers for storing ash collected in operation
of the Boiler. The ESP is equipped with automatic voltage control to
minimize power consumption.
1.4.5
Draft Equipment
Two number radial, plate bladed, backward curved, double suction

(NDZV), pin type flexible coupling F.D Fans and three number radial,
plate bladed, backward curved, double suction (NDZV), hydraulic
coupling with inlet damper controlled ID Fans are provided.
1.4.6
Steam Turbine Generator Unit

Steam Turbine
The steam turbine is a 500 MW MCR, three cylinder (one
single flow HP, one dual flow IP and one dual flow LP), 3000
RPM, multistage, tandem compound, condensing, and reaction
turbine type. All essential controls and safety inter-locks are
provided. It is having all the essential auxiliaries.
Condensing Equipment
Two pass, rectangular, box type, surface condenser, with 5
minute hot well capacity, capable for maintaining the required
vacuum while condensing steam at the maximum rating of the
turbine, is provided with on load tube cleaning equipment and
an arrangement of On-load maintenance of one half of the
condenser at a time. One set of on-load debris filters are also
provided in CW supply pipe line. Three vertical centrifugal,

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Jul 2012
multistage condensate pumps, each of 50% capacity, are

provided to pump condensate from condenser hot well to the
Deaerator. Two number vacuum pumps with 100% capacity
each are provided to maintain the vacuum in the condenser by
expelling the non-condensable gases.
Deaerator and Feed Heater

The unit is provided with a variable pressure spray type/ spraycum-tray-cum-re-boiling type deaerating heater with a feed
water tank.
The high pressure closed heaters are horizontal type and
provided with both drain cooling and de-superheating zones in
addition to the normal condensing zone.
The low pressure feed water heaters are also horizontal/vertical
type and are equipped with only drain cooling and condensing
zones.
Generator
The generator is directly connected, horizontal shaft,
cylindrical rotor, commensurately rated for the turbine outputs.
The generator is provided with brushless excitation with PMG.
It is capable of operating in isolation or in parallel and with the
power grid, with voltage variations of ( + ) 10% and frequency
variations between 47.5 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 Track hopper has been
provided with Primary Crusher House (PCH), from where the coal is
taken to Secondary Crusher House # 2. The crushed coal is either
taken to fill Boiler bunkers or stacked in crushed coal stock piles by
using conveyor for feeding boiler bunkers or Stacker for stacking in
stock yard.

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Jul 2012
1.4.8
Ash Handling System

Bottom Ash (BA) is collected in water impounded BA hopper located
beneath the boiler. Bottom ash from water impounded BA hopper is
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 Economizer /APH /ESP hoppers, is extracted and
pneumatically conveyed dry, to the transfer tanks through vacuum,
created by Vacuum Pumps.
Dry fly ash from transfer tanks is conveyed to RCC silos through
Pressure Conveying System and unloaded into trucks for disposal to
cement industry/ brick making plants & balance Ash may be disposed
off in wet form to Ash Dyke Area.
Ash handling system has also been provided with Ash Water Recovery
System to meet out the requirement of Environmental norms in this
regards. This system comprises of barge mounted recovery water
pumps to recycle the excess water from Ash Pond through recovery
water pipes leading to clarifier in PH premise for subsequent treatment
and utilization.
1.4.9
Fuel Oil (FO) System

HFO / LDO system is envisaged for boiler start-up and flame
stabilization and has been taken from existing oil unloading station for
4x210 MW units. However for 500 MW unit, one no. additional
storage tanks each for HFO and LDO are provided with separate Fuel
Oil Pump House to meet out the requirement.
1.4.10 Plant Water System
Water drawn from Johila Reservoir meets the requirements of CW for

Condenser and other Auxiliaries, Ash water make up, Fire water make
up, Coal handling plant dust suppression, Service water system (Plant /
colony washing & gardening, Air washer and AC system make up, seal
water for Ash handling plant, ESP/APH washing), Water treatment
system (DM Water, DMCW system make up and potable water).
A channel tapped off from the existing intake canal, draws water to
meet complete water requirements of 1x500 MW Unit, through the

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Jul 2012
water screens. A common pump house is located downstream of Water

Screens from where the cleaned water flows to the once through
CW/ACW system and to other needs of the plant after proper treatment
as required for the relevant services.
CW system is once through system employing a siphon head recovery
arrangement across the condenser for cooling water flow. The CW
system delivers cooling water to the condenser for its cooling. The hot
return water from Condenser and ACW system leads to seal pit for
further discharge to raw water reservoir through discharge channel.
The CW system comprises of 4x33.33% vertical wet pit type CW
pumps. Whereas raw water system comprises of 3x100% vertical wet
pit type Raw Water Pumps. Raw water is supplied to Traveling Water
Screen spray system, CW chlorination system, Ash handling plant, Fire
water tank and to Pre-treatment plant and then to Clarified Water tank
for further services. Water from Clarified tank is also drawn for
meeting out the requirement of DM plant.
1.4.11 Electrical System
The power evacuation facilities available at Sanjay Gandhi Thermal

Power Station for 4x210 MW and 1*500MW are give below:
220 KV DCDS linking between SGTPS & Amarkantak
220 KV SCSS between SGTPS & Amarkantak
220 KV 4 Nos. I/C between SGTPS & 220 KV S/S of
MPPTCL, Birsinghpur
220 KV SCSS line between SGTPS & 220 KV S/S of PGCIL at
Sukha (Jbp)
220 KV SGTPS Satna
400 KV 3 Nos between SGTPS & Damosh S/S of MPPTCL.
400KV 2 Nos. between SGTPS & Damoh S/S (PGCIL).
400KV 1 No. between SGTPS & Katni S/S of MPPTCL.
400 KV Birsinghpur-Balco
400 KV Birsinghpur-Korba (NTPC)

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Jul 2012
A total of eleven bays have been provided for the 400KV Switchyard,
with two main and transfer bus. Existing 220KV Switchyard has been
extended by including two more bays complete with all equipment
including metering protection and control panel and bus bar protection
system.
Three single phase, 200 MVA, 21/420 KV, oil-immersed, outdoor,
Generator Transformers are being used for feeding power to 400KV
grid.
The inter-connecting transformer comprise three single phase auto
transformers rated 166.7 MVA, 400/220/33KV, oil-immersed, outdoor
type, with graded, star-connected primary & secondary windings and
open delta-connected, uniformly insulated, tertiary windings. 2 Nos. 63
MVA station transformers (one connected to 220KV and the other to
400KV) are used to derive auxiliary power for unit start up/emergency
and for station auxiliaries by stepping down from 220KV system
and/or from 400KV system. Each station transformer have two
secondary transformer one for 11KV and the other for 6.6 KV. 415 V
supply is obtained from 11KV/ 6.9 KV bus through step down
distribution transformers of 2 MVA/1.6 MVA ratings.
1.4.12 Instrumentation and Controls
A Distributed Digital Control and Management Information System

(DDCMIS) with CRT / Keyboard operation for SG and TG controls
and hard-wired back-up controls with monitoring and controlling
devices needed for operation is provided.
For systematic and sequential start-up shutdown and safe operation of
Boiler, Burner Management System (BMS), with fail-safe cards, is a
part of DDCMIS.
1.5
Present status of the project

Sanjay Gandhi Thermal Power Station Unit-5 (500 MW), Birsinghpur, started
trial stage generation w.e.f. 01st of Oct 2007. The Unit was declared on
commercial operation w.e.f. 28th Aug, 2008. EPC portion awarded to M/s
BHEL has been completed in Sep 2011, except for the supply of two number
lab items and few issues requiring commercial settlement. As regards the non
EPC Portion of works which were ordered directly by MPPGCL on other

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Jul 2012
agencies, most of such works have already been executed. However, certain
non EPC works such as construction of Weather Monitoring Station,
procurement of electrical lab equipments, Canteen equipments, etc., are at
different stages of execution or procurement. The construction of second
Phase Ash Dyke has been taken-up and for which civil works are reaching
completion whereas for E&M works, tender has been published in April 2012.
Proposal for construction of Administrative Building is under approval for
placement of order whereas the proposal for construction of new quarters is
yet to be taken up. Around 8 to 10% balance supplies of the capital spares,
ordered separately on BHEL and their Sub-vendors are still going on. Details
of balance works as on April 2012 are given in Annexure-20.

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Jul 2012
2.
Project Cost Estimates & Actual Capital Expenditure
2.1
CEA Approved Initial Project Cost Estimate:

Initially, an estimate of the total cost of the Project was prepared on the basis of
prices appearing in BHELs Commercial offer No. MS-1-01-E-0021, dated
10/04/2002 & 11/04/2002. For the works not covered in BHELs scope (Non
EPC items), prices had been estimated separately. Cost towards overheads had
been worked out on the basis of scope settled with M/s BHEL and taking into
account the requirement of Project. Techno-economic clearance of the project
was granted by CEA vide O.M. No. 2/MP/46/96-PAC/11280 302 dated 20th
Dec. 2002 (Annexure-2) at a total estimated cost of Rs. 2093.75 Crore, as per
following breakup:
CEA Approved Initial Project Cost Estimate

Table No. 2.1.1
2.1.1
S
N
1
2
3
4
5
6
2.2
Particulars
Cr.Rs.
As per TEC by CEA
20/12/2002
Turnkey EPC cost

Non EPC cost
Land & RR
Overheads
IDC + Fin. Cost
Total
1629.93
69.84
06.50
82.43
305.05
2093.75
The above project cost estimate has been revised to Rs.2300 Crores, for reasons
elaborated in subsequent Para. Revised estimated project cost has been approved
by GoMP, vide letter No. 3193/13/2007 dated 04/05/2007, (Annexure-3)
Revised Approved Estimate VisVis-a-vis the Initial Estimate

Estimate
Table No. 2.
2.2.1
SN
Particulars
1
2
3
4
5
6
Turnkey EPC cost

Non EPC cost
Land & RR
Overheads
IDC + Fin. Cost
Total
Cr.Rs.
TEC by CEA
22/12/2002
1629.93
69.84
6.50
82.43
305.05
2093.75
GoMP Approved
04/05/2007
1861.12
99.44
13.70
56.40
269.00
2300.00

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Jul 2012
2.3
Reasons for revision in Project Cost Estimate to Rs.2300 Crores

2.3.1 Land and RR Cost
This cost was revised due to change in scope and rise in prices.
2.3.2 EPC Cost
The base EPC cost has remained constant. However estimated provision
for price variation was increased so as to take care of inflation in the price
indices of material and labor components as per terms of EPC contract
placed in BHEL. Amount towards works contract tax on civil works has
been revised downwards due to exercising of option for composition mode
as per provisions of Commercial Tax Act 1994. Amount estimated towards
taxes & duties on materials purchased was increased due to change in
Price Variation amount and imposition of education Cess. Additional
provision was required to be made due to imposition of service tax on civil
works and erection contracts.
2.3.3 Non-EPC Cost
Under this cost the major head covered are spares and railway siding. It
was increased due to increase in price inflation for spares and change in
scope and design of railway-siding during approval by railways.
2.3.4 IDC & FC
This cost was estimated to be less as compared to original provision due to
change in rate of interest by M/s PFC from time to time. The rate was
originally stated to be 11% and had changed from time to time. The
revised estimate of IDC was made assuming completion of trial operations
by Feb/Mar 2007, as per the commitment given by BHEL in April 2006,
and the rate of interest as 10% per annum. Thus, the IDC was estimated to
be Rs.269 Crores as against Rs. 305.05 Crores envisaged originally.
2.4
Actual Project Cost till COD as per Audited Books of Accounts:

2.4.1 Accounts of MPPGCL for FY09, FY10 and FY11 have been finalized and
duly audited by the Statutory Auditors and CAG Auditors. Based on the
audited books of accounts for FY09, FY10 and FY11, the Project
cost/expenditure break up as on COD and subsequent to COD till
31/03/2011, is annexed (Annexure-16). As indicated in the project
cost/expenditure break up statement, against the approved estimate of
Rs.2300.00 Crores the actual expenditure till COD as per the audited books

Page 28

Jul 2012
of accounts including IDC and after deducting the net revenue earned from
Infirm Power generated by the Unit is Rs. 1994.23 Crores. The IDC amount
capitalized as per the audited books of accounts is Rs. 407.74 Crores. The net
revenue from Infirm Power generated by the Unit which has been considered
for reduction in the capital cost as per clause 37 of MPERC (Terms &
Conditions of determination of Generation Tariff) Regulation 2005 and in
accordance with clause 19 of CERC Tariff Regulations 2004, is Rs.275.60
Crores. Account Head wise details of the capital expenditure till COD, as per
audited books of accounts, are furnished in Form TPS-5B.
2.4.2 Details of amount recovered through infirm power charges are as given
below:-
Amount Recovered Through Infirm Power Charges

Table 2.
2.4.2.1.
2.1.
SN
Month
1
2
3
4
5
6
7
8
9
10
11
12
Oct 2007 (01/10/2007 to 31/10/2007)

Nov-07
Dec-07
Jan 2008 (01/01/2008 to 06/01/2008)
Jan 2008 (07/01/2008 to 31/01/2008)
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug 2008 (01/08/2008 to 27/08/2008)
Total
Power
Injected
(MUs)
38.97
60.13
162.14
40.65
143.11
186.12
51.23
120.92
222.21
237.10
197.45
113.83
1573.84
Billing
Amount
(Cr. Rs.)
3.95
6.09
16.43
4.12
56.66
75.00
20.85
46.39
71.65
80.79
77.54
38.92
498.41
Infirm Power billing has been done for the period 01/10/2007 till
27/08/2008, as per MPERC orders dated 18/01/2008 (Annexure-5) and
dated 20/10/2008 (Annexure-7). Month wise energy account details of
Infirm Energy from 500MW SGTPS Extn. Unt No. 5, provided by SLDC,
are enclosed as Annexure-21 to Annexure-31.
2.4.3 Expenditure incurred on fuel during Infirm Power generation was
Rs.222.80 Cr. (Annexure-13). Therefore, the net revenue from Infirm
Power generated from the Unit was Rs.275.60 Crores.

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Jul 2012
2.4.4 The table below elaborates the Project Cost as on COD:
Net Project
Project Cost as on COD
Table 2.4
2.4.4.1.
Amount in Cr. Rs.
SN
2.5
Particulars
Unit
Amount
1
2
3
4
5
6
Capital expenditure up to CoD excluding IDC

IDC amount capitalized as per audited books of A/c
Capital expenditure up to CoD including IDC (1+2)
Amount billed for sale of Infirm Power
Expenditure on fuel for generation of Infirm Power
Net revenue earned on A/c of sale of Infirm Power
Rs. Cr.
Rs. Cr.
Rs. Cr.
Rs. Cr.
Rs. Cr.
Rs. Cr.
1862.09
407.74
2269.83
498.41
222.80
275.60
Net Capital cost as on CoD after duly accounting for

the revenue earned from sale of Infirm Power (3-6)
Rs. Cr.
1994.23
Additional Capital Expenditure

The Year wise additional capital expenditure subsequent to COD and the
cumulative project costs at the end of respective financial years, as per audited
books of accounts of FY09, FY10 and FY11, are given in the Table below.
Additional Capital Expenditure After COD till 31/03/2011

Table 2.5.1
(in Cr. Rs.)
As per Audited Books of Accounts

As on
COD
1994.23
COD to Total as 01/04/2009 Total as on 01/04/2010 Total as on

to
to
31/03/2009
on
31/03/2010
31/03/2011
31/03/2011
31/03/2009 31/03/2010
3.35
1997.58
33.02
2030.6
26.45
2057.05
Provisional capital expenditure during FY12 and that projected for the period
from 01/04/2012 till completion of balance works including second phase of
Ash Bund is given in Table below.

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Jul 2012
Additional Capital Exp.

Exp. from 01/04/2011
01/04/2011 till completion of Balance Works
Table 2.5.2
(in Cr. Rs.)
Provisional
Projected
From
01/04/2011
to
31/03/2012
Total as on
31/03/2012
From 01/04/2012 till

Completion of balance
works including the work
of second phase Ash Bund
Total as on completion
of balance works
including the work of
second phase Ash
Bund
42.00
2099.05
85.35
2184.40
As shown in above Tables, the total project cost on completion of facilities,

including the work for second phase Ash Bund, shall be Rs.2184.40 Crores
(on projected basis), which is well within the GoMP approved project cost
estimate of Rs. 2300 Crores. Account head wise details of additional capital
expenditure, subsequent to COD and upto 31/03/2011, as per the audited
books of accounts, are given in Form TPS-9.
2.6
Interest During Construction (IDC)

Funding of the 500MW SGTPS Extn. Unit No. 5, is through PFC Loan of
Rs.1560.00 Crores and GoMP/MPSEB Equity of Rs. 625.00 Crores. As per
the PFC demand statements, the figure for IDC is Rs. 397.81 Crores. Details
of quarter wise drawls and interest and finance charges till COD is given in
Form 16. However, as per the audited Books of Accounts of MPPGCL, the
amount for Interest during Construction (IDC), included in the project cost as
on COD, is Rs. 407.74 Crores. The additional amount of Rs. 9.93 Crores
booked under IDC as per audited books of accounts is mainly for the MPSEB
period when ESAAR 1985 accounting procedure was being followed, which
eliminates identification of source to its use while capitalization of interest on
funds.
The difference of Rs. 9.93 Crores in the figures for IDC as per PFC demand
statements and as per audited books of accounts is mainly due to capitalization
of interest liability by erstwhile MPSEB to various Power Stations considering
the ratio of CWIP at various Power Stations. As the interest liability pertaining
to SGTPS 500 MW was transferred to MPPGCL through final opening
balance sheet as on 1st June, 2005, notified by GoMP vide its notification No.
No.4068-FRS-18-2002-XIII dated 12th June, 2008, same has been considered
by MPPGCL for determination of Project cost.

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Jul 2012
In view of the above submissions, MPPGCL humbly requests the Honble

Commission to allow the IDC amount of Rs. 407.74 Crores as per audited
books of accounts.
2.7
Capital expenditure for Phase-II Ash Bund and allied works:

Since the capacity of the existing ash dump area at SGTPS Birsinghpur was
assessed to be exhausted by January 2011 or earlier, which could endanger the
operation of the thermal generating Units of SGTPS Birsinghpur, development
works for the second phase of ash dump (in 100 Hectares of forest land)
needed to be taken up timely. Accordingly, necessary approvals from MoEF
(GoI) and Forest Department, GoMP, Bhopal were obtained and other
activities were initiated in this regard for design of ash bund and its cost
estimation, etc. The estimated expenditure for the second phase of Ash Bund
is Rs. 46.26 Crores and the same shall be funded through the presently tied up
funds for 500 MW SGTPS Extn. Unit No. 5.
CEA while according techno-economic clearance and approving the initial
project cost estimate of Rs. 2093.75 Crores for 500MW SGTPS Extn. Unit
No. 5, vide its letter dated 20/12/2002 (Annexure-2), had not allowed the
provision for the construction of ash dyke for new ash pond as the existing ash
pond of stage-I was considered adequate to meet the requirement of ash
disposal of existing stage-I and proposed stage-II of the project up to 2008 and
also in view of MOEFs notification of September, 1998 requiring 100%
utilization of fly ash by 2008. However, it was stated that any provision
required at a later date will be allowed as capital addition based on the
assessment of the stipulated requirements at that time by the concerned
regulatory authority.
In this regard, it may be highlighted that during the techno-economic clearance
stage of SGTPS Birsinghpur Project, the MoEF (GoI) had approved to take up
the works related to ash bund including ash disposal system in phased manner,
in three phases. Thus, the works related to the Phase-II and Phase-III ash
bunds were also a part of the original project report of Birsinghpur Complex.
However, the cost estimates for Phase-II and Phase-III ash bunds were not
made part of the project cost of 4*210 MW and 1*500 MW Units, during
installation and commissioning of these Units, as the same were not finalized
at that time.

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Jul 2012
As per MPERC (Terms And Conditions For Determination Of Generation

Tariff) Regulations, 2005 (G-26 Of 2005), additional capital expenditure
actually incurred after the date of commercial operation and duly audited may
be considered by the Commission, subject to prudence check. As per clause
19(f) of MPERC Regulations 2005, any additional works/ services, which
have become necessary for efficient and successful operation of a generating
station but not included in the original capital cost is considered as additional
capital expenditure. Accordingly, the Petitioner requested the Honble
Commission, vide letter dated 20/02/2009, Annexure-32, to accord Inprinciple approval for additional capital expenditure for development of
Phase-II of Ash disposal and allied works and financing from the project cost
of 1*500 MW Unit.
The Honble Commission vide letter dated 27/04/2009, Annexure-33,
informed that the Commission shall consider the additional capital expenditure
incurred or projected to be incurred within the original scope of work after the
date of commercial operation in accordance with the Regulation 20 of the
terms and conditions of generation tariff for the next control period
commencing 2009.
2.8
There was a clause in the contract agreement for deduction of Liquidated

Damages from BHELs invoices on account of delays in the project
attributable to BHEL. An amount of Rs.93.04 Crores has been deducted
towards LD from BHELs dues which will be settled in due course of time. A
brief write-up on reasons for project delays is given in Annexure-34. Besides
LD, a cumulative amount of Rs. 18.89 Crores as on 31/03/2011 had been
retained as ERV/CDV. Year wise cumulative amounts retained as ERV/CDV
as on COD, end of FY09, end of FY10 and at end of FY11 are Rs.3.70 Crores,
Rs.5.77 Crores, Rs.17.54 Crores and Rs. 18.89 Crores, respectively. The
cumulative retention amount towards ERV/CDV as on 31/03/2011 should
actually have been limited to Rs.18.5 Crores only. Excess retained amount of
Rs.0.39 Crores has, therefore, been adjusted in May 2012. As such the net
amount retained as ERV/CDV is Rs.18.50 Crores. The amounts of LD and
ERV/CDV shall be finalized after reconciliation of accounts with BHEL prior
to closure of contract(s). These amounts are appearing as liability in the books
of accounts. Final decision in the matter of treatment of LD and ERV/CDV
deducted/retained from BHELs invoices shall be taken at the time of project
closure.

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Jul 2012
3. Funding of the Project

3.1
The approved funding pattern for the project cost of Rs. 2300.00 Crores is as
below:
Approved Project Funding

Table 3.1.1.
Particulars
Amount (Rs. Cr.)
%
Loan
Loan I (From PFC- Loan No. 20101011)
1560.00
Loan II / Additional Loan
115.00
1675.00 72.83
Total Loan
Equity
Foreign
0
Domestic (GOMP + MPSEB)
625.00
625.00 27.17
Total Equity
Total Finance (Loan + Equity)
2300.00 100.00
3.2
The project funding till COD and subsequently in FY10, FY11 and FY12 is
given below. Figures for FY12 are on provisional basis:-
Details of Project Funding

Table 3.2.1.
SN Particulars
1
2
3
4
5
6
8
9
10
Up to March 2004
During FY05
During FY06
During FY07
During FY08
During FY09 (Till COD)
Sub Total (Till COD)
During FY09, from COD to 31/03/2009
During FY10
During FY11
11
During FY12*
Sub Total (After COD till 31/03/2012)
Grand Total (Till 31/03/2012)
Amount in Cr. Rs.

Equity
10.77
43.31
280.15
270.00
20.77
0.00
625.00
0.00
0.00
0.00
PFC
Loan
242.76
300.02
459.12
163.02
101.16
34.72
1300.79
17.82
82.54
71.87
0.00
51.81
0.00
625.00
224.05
1524.83
* Provisional

Page 34
Total
253.53
343.33
739.27
433.02
121.93
34.72
1925.79
17.82
82.54
71.87
51.81
224.05
2149.83

Jul 2012
Cumulative Project Funding

Table 3.2.2
Amount in Cr. Rs.
Source
of fund
Till
COD
Equity
625.00
In FY-09
From
COD to
31/03/20
09
0.00
625.00
In FY10
01/04/20
09 to
31/03/20
10
0.00
Loan
1300.79
17.82
1318.61
82.54
Total
1925.79
17.82
1943.61
82.54
Source of fund
Equity
Loan
Total
3.3
Cumulativ
e Funding
till
31/03/2009
in FY12
01/04/2011 to
31/03/2012
0.00
51.81
51.81
Cumulative
Funding till
31/03/2012
Cumulativ
e Funding
till
31/03/2010
in FY11
01/04/2010
to
31/03/2011
Cumulativ
e Funding
till
31/03/2011
625.00
0.00
625.00
1401.15
71.87
1473.02
2026.15
71.87
2098.02
From 01/04/2012
to completion of
works (Projected)
Cumulative
Funding till
completion of
works
(Projected)
0.00
34.57
34.57
625.00
1524.83
2149.83
625.00
1559.40
2184.40
Out of the total equity of Rs. 625.00 Crores, an amount of Rs. 14.08 Crores
has been funded by MPSEB through its internal resources while Rs. 610.92
Crores has been funded as GoMP equity released as detailed in Table 3.3.1
below. Copies of release letters are attached as Annexure-35 to Annexure-45
Details of GoMP Equity Released

Table 3.3.1
Approval Letter
SN
Dated
1
2
3
4
6334 & 6335/13/2004

1702/13/2005
7056/13/2005
494/13/2006
30/10/2004
01/03/2005
29/10/2005
30/01/2006
5
6
7
8
9
10
11
1726/13/2006
1991/13/2006
3639/F-5-3/13/2006
5119/F-5-3/13/2006
6467/F-5-3/13/2006
MPPGCL/917
F-5-3/13/2006
Total
16/03/2006
25/03/2006
14/06/2006
05/08/2006
10/10/2006
04/04/2007
16/01/2008
Amount
(Rs. Cr.)
27.00
13.00
60.00
50.00
70.15
100.00
56.00
34.00
75.00
105.00
20.77
610.92
Received Date
Nov 2004
Mar 2005
Nov 2005
Jan 2006
Mar 2006
Mar 2006
Jun 2006
Aug 2006
Oct 2006
Mar 2007
Jan 2008

Page 35

Jul 2012
3.4
PFC has sanctioned a loan amounting to Rs.1560.00 Cr. (No. 20101011) for
setting up of 500MW SGTPS Extn. Unit No. 5, Birsinghpur. Details of this
loan have been provided in Form TPS-7 in this petition and copy of PFC
sanction letter dated 02/05/2003 is attached as Annexure-46. Table no. 3.2.1
above elaborates the loan amounts drawn for the project, starting from FY04
till COD and subsequently for the additional capital expenditure till FY12.
Total loan drawal till CoD amounts to Rs.1300.79 Crores. Subsequent loan
drawals in FY09 (from COD to 31/03/2009), FY10, FY11 and FY12 are Rs.
17.82 Crs, Rs.82.54 Crores, 71.87 Crores and Rs. 51.81 Crores respectively.
Quarter wise loan drawals are elaborated in Form -16. As a part of the total
loan funding of Rs. 1675.00 Crores in the approved total estimated cost of Rs.
2300.00 Crores, an additional loan of Rs. 115.00 Crores was also applied for
from PFC, in Oct 2006. However, subsequently, due to expected delay in the
project execution MPPGCL had decided to levy LD on M/s BHEL resulting
into reduction in fund requirements. Therefore, PFC was requested to defer the
processing of MPPGCLs proposal for sanctioning additional loan of Rs. 115
Crores, in Feb 2007.
3.5
Ratio of loan and equity drawls as on COD is given in table below:
Approved Funding Pattern and Actual Funding as on COD

S
N
1
3
4
Item
Loan
PFC Loan-I (20101011)
Additional PFC Loan
Total Loan
Equity
GoMP
MPSEB
Total Equity
Total Funding
As per Approved
Estimate
Cr. Rs.
%
Funding As on
COD
Cr. Rs.
%
1560.00
115.00
1675.00
67.83%
5.00%
72.83%
1300.79
0.00
1300.79
67.55%
0.00%
67.55%
610.92
14.08
625.00
2300.00
26.56%
0.61%
27.17%
100.00%
610.92
14.08
625.00
1925.79
31.72%
0.73%
32.45%
100.00%
As seen from the above table, total equity drawn till COD is 32.45%. The
Petitioner has, therefore, considered admissible equity amount of Rs. 577.74
Crores only, 30% of total funding as on COD, for computing the return on
equity as per MPERC (Terms and Conditions for Determination of Generation
Tariff) Regulations, 2005 {G-26 of 2005}. The balance equity amount of
Rs.47.26 Crores has been treated as Normative Loan and interest has been
claimed at weighted average rate of interest for the Year.

Page 36

Jul 2012
4. Norms of Operation
4.1
As per Clause 1.5 of "MPERC (Terms and Conditions of Generation Tariff)

Regulations, 2005 {G-26 OF 2005}", applicable norms for SGTPS 500 MW
Unit No. 5 for the period FY09 are those as prescribed by CERC vide its order
dated 26/03/2004. For the Control Period FY10 to FY12, the Norms
prescribed by the Honble Commission, in "MPERC (Terms and Conditions of
Generation Tariff) Regulations, 2009 {RG-26 (I) OF 2009}" are applicable.
4.2
Accordingly, following norms are applicable for 500 MW SGTPS Unit No. 5,
Birsinghpur, for the period FY09 to FY12:
Norms of Operation
Table No. 4.2.1.
Particulars
Unit
For FY09
Target Availability for Recovery of

Full Capacity (Fixed Charges)
80
For FY10
to FY12
-
Normative Plant Availability Factor

Target PLF for Incentive
Gross Station Heat Rate
Specific Secondary Fuel Oil
Consumption
Auxiliary Energy consumption
%
%
kCal/kWh
ml/kWh
80
2450
2
85
2425
1

Page 37

Jul 2012
5.
5.1
Components of Tariff
In accordance with "MPERC (Terms and Conditions of Generation Tariff)

Regulations, 2005 {G-26 OF 2005}" and "MPERC (Terms and Conditions of
Generation Tariff) Regulations, 2009 {RG-26 (I) OF 2009}", the 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.
5.2
As per "MPERC (Terms and Conditions of Generation Tariff) Regulations, 2005

{G-26 OF 2005}":5.2.1 The annual capacity (fixed) charges consist of :5.2.1.1
5.2.1.2
5.2.1.3
5.2.1.4
5.2.1.5
5.2.1.6
5.2.1.7
Interest on Loan Capital,

Depreciation, including advance against depreciation,
Return on Equity,
Operation & Maintenance Expenses,
Interest on Working Capital,
Actual Expenditure incurred on terminal benefits including
pension,
Prior Period Expenditure.
5.2.2 The Energy (Variable) Charges shall cover fuel cost.

5.3
As per "MPERC (Terms and Conditions of Generation Tariff) Regulations, 2009

{RG-26 (I) OF 2009}":5.3.1 The annual capacity (fixed) charges consist of :5.3.1.1
5.3.1.2
5.3.1.3
5.3.1.4
5.3.1.5
5.3.1.6
5.3.1.7
5.3.1.8
Return on Equity
Interest and Financing Charges on Loan Capital
Depreciation
Lease/Hire Purchase Charges
Operation and Maintenance Expenses
Interest Charges on Working Capital
Special allowance in lieu of R&M or separate compensation
allowance, wherever applicable
5.3.2 The Energy (variable) Charges shall cover main fuel cost.
5.4
Calculation of these charges, as per the aforesaid Regulations, has been detailed in
the forthcoming chapters.

Page 38

Jul 2012
6.
Return on Equity
6.1
Return on Equity for the period FY09 has been computed on the paid up
equity capital determined in accordance with regulation 20 of "MPERC
Regulations, 2005 {G-26 OF 2005}" and has been computed at 14% (post tax)
per annum. Where equity 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 regulation 22 of "MPERC
Regulations, 2005 {G-26 OF 2005}". Where actual equity employed is less
than or equal to 30%, the actual equity has been considered.
6.2
Return on Equity for the period FY10 to FY12 has been computed on the paid
up equity capital determined in accordance with regulation 21 of "MPERC
Regulations, 2009 {RG-26 (I) OF 2009}" and has been computed on pre-tax
basis at the base rate of 15.5% to be grossed up as per regulation 22.3 of
"MPERC Regulations, 2009 {RG-26 (I) OF 2009}". 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 Regulation 23 of "MPERC Regulations, 2009 {RG26 (I) OF 2009}". Where actual equity employed is less than or equal to 30%,
the actual equity has been considered.
6.3
Since no tax has been paid by MPPGCL in FY10 and FY11, the return on
equity has been computed on the base rate of 15.5 % for FY10 and FY11. For
FY12, the rate of return on equity has been computed by grossing up the base
rate with the Minimum Alternate Tax (MAT) rates applicable. In case,
MPPGCL becomes liable to pay any other type of tax /surcharge on RoE, the
same shall be chargeable separately.
6.4
Accordingly, Return on Equity for the respective Years works out as under :-

Page 39

Jul 2012
Return on Equity
Table No. 6.4.1
S.No.
1
2
3
4
5
6
7
8
10
11
12
Amount in Cr. Rs.
Particulars
Opening Equity
Addition in Equity
Closing Equity
Average Equity
Base Rate of Return on
Equity
Tax Rate Considered
(MAT including
surcharge and Cess &
SHEC for FY12)
ROE Rate (Pre Tax)
Pre Tax ROE Amount
on Yearly Basis, Cr.
Rs.
Period of operation
during the Year (in
days)
ROE for the actual
period of operation,
Cr. Rs.
Amount of MAT, Cr.
Rs.
Post Tax ROE , Cr. Rs.
FY09
(COD to
31/03/2009)
FY10
FY11
Cr.Rs.
Cr.Rs.
Cr.Rs.
Cr.Rs.
%
577.74
0.00
577.74
577.74
14.00%
577.74
0.00
577.74
577.74
15.50%
577.74
0.00
577.74
577.74
15.50%
577.74
0.00
577.74
577.74
15.50%
0.000%
0.000%
0.000%
20.008%
%
Cr.Rs.
14.000%
80.88
15.500%
89.55
15.500%
89.55
19.377%
111.95
Days
216
365
365
366
Cr.Rs.
47.87
89.55
89.55
111.95
Cr.Rs.
0.00
0.00
0.00
22.40
Cr.Rs.
47.87
89.55
89.55
89.55
* ROE figures for FY12 are provisional.
6.5
FY12 *
It is humbly requested before Honble Commission to kindly permit the same.

Page 40

Jul 2012
7. Interest & Finance Charges

Charges
7.1
Considering the terms of the loan sanctioned by PFC, as detailed in Chapter

No. 3, interest and finance charges on loan capital have been worked out in
accordance with regulation 22 of "MPERC Regulations, 2005 {G-26 OF
2005}" for the period FY09 and in accordance with regulation 23 of "MPERC
Regulations, 2009 {RG-26 (I) OF 2009}" for the period FY10 to FY12.
7.2
For FY09, as per clause 2.17 of regulation 22 of "MPERC Regulations, 2005

{G-26 OF 2005}", depreciation provided for in the tariff during the years of
moratorium has been treated as repayment during the respective year and
interest on loan capital has been calculated accordingly. For FY10 to FY12, as
per clause 23.4 of regulation 23 of "MPERC Regulations, 2009 {RG-26 (I)
OF 2009}", the repayment of loan has been considered equal to the annual
depreciation allowed.
7.3
Accordingly, the interest and finance charges worked out are given in Table
7.3.1.
Interest & Finance Charges

Table No. 7.3.1
Particulars
FY09
Gross Normative loan 1348.05
Opening
Cumulative repayments of
0.00
Normative Loans upto previous
year
Net Normative loan - Opening
1348.05
Add: Drawal(s) during the Year
17.82
Less: Repayment (s) of
42.51
Normative Loans during the
year
Net Normative loan - Closing
1323.37
Avg. Normative Loan
1335.71
Weighted Avg. Rate of Interest
11.56
on Actual Loans
Rs. In Cr
FY10
1323.37
FY11
1434.06
FY12 *
1543.36
0.00
133.07
276.77
1323.37
82.54
104.91
1301.00
71.87
106.28
1266.59
51.81
108.45
1301.00
1312.18
11.58
1266.59
1283.79
11.56
1209.95
1238.27
11.58
Interest on Normative Loan **

91.38
151.95
148.41
143.39
* Interest on Normative Loan for FY12 is provisional as the figures for
FY12 are unaudited.
** Interest on Normative Loan for FY09 is for 216 days.
7.4

Page 41

Jul 2012
8.
8.1
Depreciation
Honble Commission in its regulation "MPERC (Terms and Conditions of

Generation Tariff) Regulations, 2005 {G-26 OF 2005}" has specified the
principles of charging depreciation. MPPGCL has determined the weighted
average rate of depreciation for FY09 as per the Regulations, 2005, at rates
specified in Appendix I of the Regulation. Further the Honble Commission,
in its Regulations 2005, clause 2.20, permits Advance against Depreciation
(AAD) for new projects in addition to allowable depreciation, provided if the
cumulative repayment up to a particular year exceeds the cumulative
depreciation up to that year. Since the cumulative repayment up to FY09 is nil,
MPPGCL has not claimed any AAD, as per Regulations 2005.
8.2
Honble Commission in its Regulation "MPERC (Terms and Conditions of

Generation Tariff) Regulations, 2009 {RG-26 (I) OF 2009} has specified the
principles of charging depreciation for the control period FY10 to FY12.
Accordingly, MPPGCL has determined the weighted average rate of
depreciation for FY10 to FY12 as per the Regulations, 2009 and at rates
specified in Appendix II of the Regulations, based on Gross Block as on
01/04/2009.
8.3
Thus the effective rate of depreciation on annual basis works out to 3.60% for
FY09 and 5.16% for FY10 to FY12, as indicated in tables below:

Page 42

Jul 2012
Calculation of Depreciation Rate for FY09

Table 8.3.1.
(Amount in Cr. Rs.)
SN
Name of the Assets
1
2
Land owned under full title

Land held under lease (Cost of Land
development on lease hold land, cost of land
development not of enduring nature, cost of
land resettlement, cost of tree plant. For tree
cut down, etc. )
Assets (Purchased New)
Plant and machinery in genrating stations
including plant foundations
Cooling towers and circulating water sys.
3
a
Gross
Block as
on COD
Depreciation
Rate (%) as
per MPERC
Schedule,
(2005)
0.0000
0.00
0.00
4.8519
Depreciat
ion
Amount
for FY09
0.0000
0.0000
1623.8056
3.60
58.4570
31.9807
3.60
1.1513
i Containing thermo- electric generating plant
117.3538
3.60
4.2247
ii Roads other than kutcha roads

iii Others (Kuchha Roads, Residential Colony
for Staff, Other buildings, etc.)
d
Transformers, transformer (Kiosk) substation equipment & other fixed apparatus
(including plant foundations) having a rating
of 100 kilo volt amperes and over
e
Switchgear including cable connections
i Underground Cable including joint boxes
and disconnected boxes
ii Cable duct system
f
Meters
g
Office furniture and fittings, Office
equipment, Internal Wiring including fittings
and apparatus, Street Light Fittings, etc,
3.7561
0.7359
1.80
1.80
0.0676
0.0132
166.8904
3.60
6.0081
27.1967
0.0002
3.60
2.57
0.9791
0.0000
5.9149
0.0844
11.6558
1.80
6.00
6.00
0.1065
0.0051
0.6994
b
c
Building & civil engineering works of a

Permanent character,
Total
Wtd. Avg Depreciation Rate (%)
Yearly Depreciation Amount (For FY09,
the figure is pro-rata for 216 days)
1994.2264
71.71
3.60
42.44

Page 43

Jul 2012
Calculation of Depreciation Rate for FY10 to FY12

Table 8.3.2.
SN
1
2
3
a
(Amount in Cr. Rs.)
Name of the Assets
Land owned under full title

Land held under lease (Cost of
Land development on lease hold
land, etc. )
Assets (Purchased New)
Plant and machinery in
generating.
Cooling towers and CW Sys.
Building & civil engineering

works of a Permanent character,
i Containing thermo- electric
generating plant
ii Roads other than kutcha roads

iii Others (Kuchha Roads,
Residential Colony for Staff,etc.)
d
Transformers, transformer
(Kiosk) sub-station equipment &
other fixed apparatus
e Switchgear including cable
connections
i Underground Cable including
joint boxes.
ii Cable duct system
f Meters
g Office furniture and fittings,
Office equipment, etc,
Total
Wtd. Avg Depreciation Rate
(%)
Gross
Dep.
Block as Rate
on
(%)
01/04/09 (2009)
Depreciation Amount
0.00
4.85
0.00
3.34
FY10
0.00
0.16
FY11
0.00
0.16
FY12
0.00
0.16
1627.16
5.28
0.00
85.91
0.00
85.91
0.00
85.91
31.98
5.28
1.69
1.69
1.69
0.00
0.00
0.00
117.35
3.34
3.92
3.92
3.92
3.76
0.74
3.34
3.34
0.13
0.02
0.13
0.02
0.13
0.02
166.89
5.28
8.81
8.81
8.81
27.20
5.28
1.44
1.44
1.44
0.00
5.28
0.00
0.00
0.00
5.91
0.08
11.66
5.28
5.28
6.33
0.31
0.00
0.74
0.31
0.00
0.74
0.31
0.00
0.74
1997.58
103.14 103.14 103.14

5.16

Page 44

Jul 2012
8.4
During FY09, the Unit was under commercial operation for 216 days only.
Accordingly the amount of depreciation for FY09 has been calculated on prorata basis for 216 days. Details of depreciation amounts being claimed for the
respective Years are given in table below and also in Form TPS-12:
Calculation of Depreciation Amount

Table No. 8.4.1.
(Amount in Cr. Rs.)
Financial Year
Depreciation on Capital Cost
Wtd. Avg. rate of Depreciation
Depreciation on Additional Capitalization
Amount of Additional Capitalization
Depreciation Amount for current year
Depreciation Amount for Previous years
additional capitalization
Sub Total of Depreciation amount on
additional capitalization
FY09
42.44
3.60
FY10
103.14
5.16
FY11
103.14
5.16
FY12*
103.14
5.16
3.35
0.07
0
33.02
1.70
0.07
26.45
1.37
1.78
42.00
2.17
3.14
0.07
1.78
3.14
5.31
Total Depreciation amount for the Year

Adv. against depreciation during the Year
42.51
0.00
104.91
0.00
106.28
0.00
108.45
0.00
Depreciation & advance against

depreciation during the Year
42.51
104.91
106.28
108.45
Cumulative Depreciation & Advance against

Depreciation up to the Year
42.51
147.42
253.70
362.15
* Dep. Amounts for FY12 are provisional.
8.5
It is therefore, humbly requested to kindly permit depreciation as detailed in

the table above.

Page 45

Jul 2012
9. O&M Expenses
Expenses
9.1
Honble Commission, in "MPERC (Terms and Conditions of Generation

Tariff) Regulations, 2005 {G-26 OF 2005}" clause no. 38, has approved the
rate for O&M expenses for thermal stations for the control period up to FY09.
For the generating units/stations commissioned after 01/04/2006, principles
and norms for O&M as prescribed by CERC vide its order dated 26/03/2004
are applicable. Accordingly, the norms of O&M charges applicable for SGTPS
500 MW Unit for the period FY09 are given in the table below. Similarly, the
Honble Commission, in "MPERC (Terms and Conditions of Generation
Tariff) Regulations, 2009 {RG-26 (I) OF 2009}" clause no. 34.1, has approved
the rates for O&M expenses for thermal stations for FY 10 to FY 12. These
rates are also given in the table below.
Applicable O&M Expenses Norms for Thermal Generating Units

Table 9.1.1.
Rs. In Lakh/MW
Units Size (MW)
FY 08-09
FY 09-10
Regulations 2005
500 MW & above
10.95
FY 10-11
FY 11-12
Regulations 2009
10.7
11.36
12.05
9.2
In FY09 the plant was under commercial operation for 216 days. Accordingly
the O&M expenses being claimed for FY09 are for 216 days only.
9.3
Operation and Maintenance expenses admissible to 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 to be paid to employees, taxes payable to the
Government, MPSEB expenses, fees payable to MPERC and other expenses
which are claimed separately as per actual.

Page 46

Jul 2012
9.4
Year wise O&M expenses being claimed by MPPGCL, as per norms, are
given in the table below :
Year wise O&M Expenses Claimed

Table 9.4.1.
(Amount in Cr. Rs.)
Particulars
Capacity of Plant
Rate of O&M Expenses
Period of Operation (in days)
O&M Expenses claimed
9.5
FY09
FY 10
FY11
FY12
MW
500
500
500
500
L Rs/MW
10.95
10.7
11.36
12.05
No
216
365
365
366
Cr.Rs
32.40
53.50
56.80
60.25

Page 47

Jul 2012
10. Interest on Working Capital

10.1
Interest on working capital for FY09 has been determined on the Working
capital elements determined in pursuance with the norms as approved by
Hon'ble Commission in "MPERC (Terms and Conditions of Generation
Tariff) Regulations, 2005 {G-26 OF 2005}" and its amendment (AG-26 (i) of
2006). Accordingly, the working capital for FY09 shall cover:
10.1.1 Cost of coal for two month, corresponding to the target availability;
10.1.2 Cost of secondary fuel oil for two months corresponding to the target
availability;
10.1.3 Operation and Maintenance expenses for one month;
10.1.4 Maintenance spares @ 1% of the historical cost escalated @ 4% per
annum from the date of commercial operation; and
10.1.5 Receivables equivalent to two months of fixed and variable charges for
sale of electricity calculated on the target availability
10.2
For FY09, as per clause 2.30 of "MPERC (Terms and Conditions of

Generation Tariff) Regulations, 2005 {G-26 OF 2005}", the rate of interest on
working capital has been taken on normative basis, equal to the short-term
Prime Landing Rate (PLR) of State Bank of India as on 1st April of the
relevant year (2008) plus 1%. The interest rate has accordingly been
considered as 13.25% (12.25+1) based on the PLR actually prevailing on 1st
April 2008.
10.3
Interest on working capital for FY10 to FY12 has been determined on the
Working capital elements determined in pursuance with the norms as
approved by Hon'ble Commission in "MPERC (Terms and Conditions of
Generation Tariff) Regulations, 2009 {RG-26 (I) OF 2009}", as elaborated
below:
10.3.1 Cost of coal for two months corresponding to the normative
availability;
10.3.2 Cost of secondary fuel oil for two months corresponding to the
normative availability. Since SGTPS uses more than one secondary

Page 48

Jul 2012
fuel oil, cost of fuel oil stock has been determined for the main
secondary fuel oil.
10.3.3 Maintenance spares @ 20% of the normative O&M expenses;
10.3.4 Receivables equivalent to two months of capacity charges and energy
charges for sale of electricity calculated on the Normative Annual
Plant Availability Factor
10.3.5 Operation and Maintenance expenses for one month.
10.4
For FY10 to FY12, rate of interest on working capital has been taken equal to
12.25% for FY10, the Short-term Prime Lending Rate of State Bank of India
as on April 1 of 2009, 11.75% for FY11 and 12.25% for FY12, equal to the
State Bank of India Base Rate as on 1st of April of that financial year plus 4%.
10.5
Based on above norms, Year wise working capital and interest on working
capital works out as under:
Working Capital Requirement and Interest Thereon

Table No. 10.5.1
(Amount in Cr. Rs.)
Sl.No.
Particulars
FY09
FY10
FY11
FY12 *
1
2
3
4
5
6
7
8
9
10
Fuel Stock for two months

Oil Stock for two months
O & M Expenses for 1 month
Maint. Spares
Receivables for 2 Months
Total Working Capital
Rate of interest
Interest on Working Capital
Period of Operation (in days)
Interest on Work. Capital For
period of Operation in
respective Year
53.73
4.21
4.65
19.94
113.34
195.88
13.25%
25.95
216
15.36
65.49
1.66
4.54
10.70
132.30
214.69
12.25%
26.30
365
26.30
79.38 139.34
1.81
2.45
4.82
5.10
11.36
12.05
151.77 220.28
249.15 379.22
11.75% 12.25%
29.28
46.45
365
366
29.28
46.45
* Interest of Working Capital for FY12 is provisional.

10.6

Page 49

Jul 2012
11. Cost of Secondary Fuel Oil Consumption

11.1
As per "MPERC (Terms and Conditions of Generation Tariff) Regulations,

2005 {G-26 OF 2005}", cost of secondary oil forms a part of energy charges.
As per "MPERC (Terms and Conditions of Generation Tariff) Regulations,
2009 {RG-26 (I) OF 2009}" the cost of Secondary Fuel Oil forms a part of the
Annual Capacity (Fixed) Charges. Regulations 2009 is effective for the period
FY10 to FY12.
11.2
Accordingly, the expenses on Secondary Fuel Oil consumption during FY10

to FY12 have been computed corresponding to normative Specific Fuel Oil
Consumption (SFC) and Normative Annual Plant Availability Factor, as per
clause 36 of the MPERC Regulations 2009. Cost incurred on secondary fuel
oil during FY10 and FY11 is based on the Weighted Average Landed Price of
Secondary Fuel Oil as per the audited books of accounts for the respective
Year. For FY12, the weighted average price of Secondary Fuel Oil has been
taken based on the monthly values available in the accounting unit at SGTPS,
Birsinghpur (Form-18 and Annexure-47). The Year wise cost of secondary
fuel oil is shown in the table below. Cost of secondary fuel oil for FY09 is
indicated in the table for academic purpose only and is calculated based on the
Weighted Average Landed Price of Secondary Fuel Oil as per the audited
books of accounts for FY09 (Form-18 and Annexure-47) and in accordance
with Regulations 2005.
Cost of Secondary Fuel Oil Consumption

Table 11.2.1
SN
Particulars
1 Capacity
11.2
Amount in Cr. Rs.

Unit
MW
FY09
500
FY10
500
FY11
500
FY12
500
For Effective Days
No.
216
365
365
366
3
4
Target Avail./ NAPAF

Gross Norm. Gen.
%
MU
80%
2074
85%
3723
85%
3723
85%
3733
Norm. Aux Cons.
7%
6%
6%
6%
Norm. Net Gen
MU
1928
3500
3500
3509
7
8
Norm. Sp Oil Cons.
MU
ml/kWHr
1626
2
3183
1
3449
1
3506
1
9
10
Qty. of Sec. Oil Rqrd.

Rate of Sec. Oil
kL
Rs/kL
11
Cost of Sec. Oil
Cr. Rs
3496
3723
3723
3733
35925.85 30153.10 32773.44 43056.39
12.56
11.23
12.20
16.07

Page 50

Jul 2012
12. Energy (Variable) Charges

12.1
For FY09, the Energy (Variable) Charges, which cover fuel cost (main fuel and
secondary fuel), have been calculated as per clause 3.13 under regulation 42 of
"MPERC (Terms and Conditions of Generation Tariff) Regulations, 2005 {G-26
OF 2005}". It has been worked out on the basis of ex-bus energy scheduled to be
sent out from the generating station as per the formula given in Regulations 2005.
12.2
The Energy (Variable) Charges for FY09 have been computed on the basis of
Normative Gross Station Heat Rate (less heat contributed by secondary fuel oil),
Gross Calorific value of coal as fired, Normative Quantity of Secondary fuel oil in
ml/kWh, Normative Auxiliary Energy Consumption as % of gross generation and
weighted average landed cost of fuel (Form-17 and Annexure-48).
12.3
For the period FY10 to FY12, the Energy (Variable) Charges, which cover main
fuel costs, have been worked out as per clause 39.2 of "MPERC (Terms and
Conditions of Generation Tariff) Regulations, 2009 {RG-26 (I) OF 2009}". The
energy charges shall be payable for the total energy scheduled to be supplied to
the beneficiary on ex-power plant basis, at the specified variable charge rates
(with fuel price adjustment).
12.4
The Energy Charges, for FY10 to FY12 have been determined based on weighted
average landed price of coal (Form-17 and Annexure-48), Normative Gross
Station Heat Rate, Normative Auxiliary Consumption, Normative Specific Fuel
Oil Consumption and Gross Calorific Value of Coal as fired.
12.5
Accordingly, Energy Charges (Variable charges) have been computed and

tabulated below, for the Year FY09, FY10, FY11 and FY12.

Page 51

Jul 2012
Energy (Variable) Charges

Table No. 12.5.1.
SN
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Particulars
Capacity
Effective Days of
operation
Target Availability/
NAPAF
Norm. Gross Gen.
Norm. Aux. Cons.
Normative Net Gen.
Scheduled Gen.
GCV of Coal
Gross Stn. Heat Rate
Sp Oil Consumption
Specific Coal Cons.
Qty. of Coal Required
Trans. & Hand. Loss
Qty. of Coal to be
purchased
Rate of Coal
Cost of Coal
Qty. of Sec. Oil Reqrd.
Rate of Sec. Oil
Cost of Sec. Oil
Cost of Coal & Sec.
Oil
Unit
MW
No.
%
MU
%
MU
MU
K Cal/kg
K Cal/kWHr
ml/kWHr
kg/kWHr
LMT
%
LMT
Rs/MT
Lakh Rs
p/u
kL
Rs/kL
L Rs
p/u
L Rs
p/u
FY09
500
216
FY10
500
365
FY11
500
365
FY12
500
366
80%
85%
85%
85%
2074
7%
1928
1626
3959
2450
2.00
0.61
10.73
0.80%
10.73
3723
6%
3500
3183
3867
2425
1.00
0.62
21.14
0.80%
21.14
3723
6%
3500
3449
3823
2425
1.00
0.63
23.18
0.80%
23.18
3733
6%
3509
3506
3881
2425
1.00
0.62
23.21
0.80%
23.39
1494.87
16038
98.66
3496
35925.85
1256
7.73
17294
106.39
1685.40
35635
111.97
2019.86
46814
135.73
3570.16
83514
238.23
12.6
Impact of Transit & Handling losses has not been taken while working out
quantity of coal to be purchased during FY09 to FY11 for the reason that the
same has been considered while working out coal prices in the audited
accounts. This avoids duplicacy of claim in respect of Transit & Handling
losses.
12.7
It is humbly requested before Honble Commission to kindly permit the

energy charges as above.

Page 52

Jul 2012
13. Prior Period Expenditure and Expenditure on

Terminal Benefits including Pension
13.1
No Prior period expenses are there and therefore no such expenses are being
claimed in the instant petition.
13.2
As per MPERC Regulations, expenses towards pension and other terminal

benefits in respect of all personnel of MPSEB/MPEB and its all successor
entities who are entitled as per their service conditions for pension and other
terminal benefits are being allowed by the Commission in the ARR of
MPPTCL for the respective Tariff Year. As such, no claim is being lodged by
MPPGCL in the instant petition on account of terminal benefits and pension
for the period FY09 to FY12.

Page 53

Jul 2012
14. Other Expenses

14.1
The other expenses comprise of Common Expenses, Cess on Auxiliary

Consumption, Rent Rates and Taxes, MPERC Fee, Entry Tax on R&M and
Water Charges.
14.2
Other expenses in respect of SGTPS 500 MW Extn. Unit No. 5 for the period
FY09 have already been allowed in the true up Order for FY09 (included in
other expenses for SGTPS Complex). Other expenses for FY10 and FY11
have been claimed in this petition as per the actual figures in the audited books
of accounts of MPPGCL. For FY12 the other expenses are being claimed on
provisional basis which shall be trued up subsequently.
14.3
Water charges and cess which are payable to government have been paid
based on rates specified by GoMP. Common expenses are expenditure
incurred in management of cash flow, etc., and have been paid to MPSEB in
accordance to GoMP notification dated 03/06/2006. Rent, Rates and Taxes for
SGTPS 500 MW Ext. Unit No. 5 has been taken on actual basis. MPERC fee
claimed is that submitted to the Commission as per the rates specified by the
Honble Commission.
14.4
Rent Rates and Taxes, Entry Tax on R&M and Common Expenses indicated
in the books of accounts of MPPGCL for SGTPS, Birsinghpur, are
consolidated expenditure figures for the complete station, (SGTPS - 4*210
MW + 1*500 MW). Expenses being claimed for SGTPS 500 MW Extn. Unit
No.5 have been worked out on pro-rata capacity basis and for the duration
available for operation in the respective Year. The table below elaborates the
other expenses being claimed for the control period FY09 to FY12.
Other Expenses
Table 14.4.1
Particulars
MPERC FEE
Cess on Aux. Consumption
Water Charges
Rent Rates & taxes
Entry Tax on R&M
Common Expenses
Total
Amount in Cr. Rs.

FY 09
0.00
0.00
0.00
0.00
0.00
0.00
0.00
FY 10
0.25
2.06
0.28
0.01
0.00
1.41
4.01
FY 11
FY12*
0.25
1.92
0.39
0.46
0.00
2.00
5.02
0.25
0.78
0.39
0.46
0.00
2.00
3.88
* Other expenses for FY12 are provisional, as the are unaudited.
14.5

Page 54

Jul 2012
15. Actual Generation

15.1
Installed capacity of the subject Unit at Sanjay Gandhi Thermal Power Station
is 500 MW. The targeted availability / NAPAF and Auxiliary Consumption
have been considered as per "MPERC (Terms and Conditions of Generation
Tariff) Regulations, 2005 {G-26 of 2005}" and "MPERC (Terms and
Conditions of Generation Tariff) Regulations, 2009 {RG-26 (I) of 2009}".
During first year of commercial operation of the Unit, i.e., FY09, the actual
period available for generation, w.e.f. COD (28/08/2009), was for 216 days
only. The table below elaborates generation from the Unit as per norms:-
Generation As Per Norms

Table No. 15.1.1
Particulars
Days available for Unit operation in the
Year.
Installed Capacity in MW
Target Availability/NAPAF
Gross Generation (MU)
Aux Consumption (%)
Aux Consumption (MU)
Net Generation MU
15.2
FY09 FY10 FY11 FY12

216
365
365
366
500
80%
2074
7%
145
1928
500
85%
3723
6%
223
3500
500
85%
3723
6%
223
3500
500
85%
3733
6%
224
3509
Against the aforesaid figures for normative generation, actual generation from
the Unit for FY09, FY10, FY11 and for FY12 is given in the Table below.
Actual Generation For Fy09

Fy09 - FY12
Table No. 15.2.1
Particulars
Gross Gen. ( in MU)
PLF
( in % )
Aux. Cons. ( in MU)
Aux. Cons. ( in % )
Net Gen. ( in MU)
FY09
FY10
FY11
FY12
1723.9
66.5%
112.30
6.51%
1611.58
3379.5
77.2%
205.87
6.09%
3173.67
3665.9
83.7%
191.99
5.24%
3473.86
3726.5
84.8%
196.35
5.27%
3530.12

Page 55

Jul 2012
16. Cost of Generation & Billing

16.1
The cost elements computed in pursuance with MPERC (Terms and

Conditions of Generation Tariff) Regulations, 2005 {G-26 of 2005} for the
period FY09 and in pursuance with MPERC (Terms and Conditions of
Generation Tariff) Regulations, 2009 {RG-26 (I) of 2009} for the period FY10
to FY12, detailed in foregoing chapters, are tabulated as below:-
Generation Cost
Table No 16.1.1.
Particulars
Normative Net Generation
Return on Equity (Pre Tax)
Intt. & Fin. Charges on Loan
Depreciation
O&M Expenses
Intt. Charges on Working Capital
Total Fixed Cost
Variable Charges
MU
MU
Cr.Rs
Cr.Rs
Cr.Rs
Cr.Rs
Cr.Rs
Cr.Rs
Cr.Rs.
p/u
Cr.Rs
p/u
FY 09
1928
1626
47.87
91.38
42.51
32.40
15.36
12.56
229.51
141.18
172.94
106.39
FY10
3500
3183
89.55
151.95
104.91
53.50
26.30
11.23
437.44
137.45
356.35
111.97
FY11
3500
3449
89.55
148.41
106.28
56.80
29.28
12.20
442.51
128.30
468.14
135.73
FY12 *
3509
3506
111.95
143.39
108.45
60.25
46.45
16.07
486.56
138.80
835.14
238.23
Other Charges
MPERC Fee
Cess
Water Charges
0.25
0.25
0.25
Cr.Rs.
0.00
Cr.Rs.
0.00
2.06
1.92
0.78
Cr.Rs.
0.00
0.28
0.39
0.39
Cr.Rs.
0.00
0.01
0.46
0.46
Rent rates & taxes
Cr.Rs.
0.00
0.00
0.00
0.00
Entry Tax
Cr.Rs.
0.00
1.41
2.00
2.00
Common expense
Cr.Rs
0.00
4.01
5.02
3.88
Total of Other Charges
Cr.Rs 402.45 797.80 915.67 1325.58
Total
p/u
247.57 250.68 265.49
378.14
Indicative Average Rate
* Charges for FY12 are provisional as the figures for FY12 are unaudited.
16.2
MPPGCL has been billing and recovering the charges for SGTPS Extn. Unit
No. 5 for the period FY09 to FY12 in accordance with the provisional tariff
order passed by the Commission on 24/11/2009 and MYT Order dated
03/03/2010.

Page 56

Jul 2012
17. Tariff Formats

17.1
Honble Commission vide its Regulation Terms and Conditions for

Determination of Generation Tariff Regulations 2005 [G-26 of 2005] has
provided the bench marks for determining cost of generation for MPPGCL for
the control period ending in FY09. Subsequently, the Commission vide its
Regulation Terms and Conditions for Determination of Generation Tariff
Regulations 2009 [RG-26(I) of 2009] has provided the revised bench marks
for determining cost of generation for MPPGCL during the Control Period
FY10 to FY12.
17.2
During the Control Period ending in FY09, tariff formats prescribed by CERC
were being used. Honble Commission provided set of forms to be filed along
with the petition for tariff, vide its Regulation MPERC (Details to be
furnished and fee payable by licensee or generating company for
determination of tariff and manner of making application) Regulations, 2004
(Fourth Amendment) [AG-13 (iv) of 2009]. MPPGCL is submitting forms
in this tariff petition in the formats specified by Honble Commission for the
Control Period FY10 to FY12, as far as possible. Specific forms required to be
filled up additionally for the control period ending FY09, or for the period
FY10 to FY12 have been filled wherever possible.

Page 57

Jul 2012
INDEX OF FORMS
Form No.
Form TPS-1
Form TPS-2
Form TPS-3
Form TPS-4
Form TPS-4A
Form TPS-5
Form TPS-5A
Form TPS-5B
Form TPS-5C
Form TPS-6
Form TPS-7
Form TPS-8
Form TPS-9
Form TPS-9A
Form TPS-9B
Form TPS-10
Form TPS-11
Form TPS-12
Form TPS-13
Form -14
Title of Tariff Filing Forms
Page No.
Summary Sheet
Plant Characteristics
Normative parameters considered for tariff
computations
Details of Foreign loans
Details of Foreign equity
Abstract of Admitted Capital Cost for the
existing Projects
Abstract of Capital Cost Estimates and Schedule
of Commissioning for the New projects
Break-up of Capital Cost for Coal/Lignite based
projects.
Breakup of construction /supply/service
packages
Financial Package up to COD
Details of Project Specific Loans
Details of Allocation of corporate loans to
various projects
Statement of Additional Capitalization after
COD
Statement of capital cost
Statement of capital works in progress
Financing of Additional Capitalization
Calculation of Depreciation Rate
Statement of Depreciation
Calculation Of Interest On Actual/Normative
Loans
Calculation of Advance Against Depreciation
59
60
61
Form-17
Details/Information to be submitted in respect

of Fuel for computation of Energy Charges.
Draw Down Schedule For Calculation Of IDC
& Financing Charges
Weighted Avg. Rate and GCV of Coal
Form-18
Rate of Secondary Oil
Form TPS-15
Form-16
62
63
64
65
66
67-68
69
70
71
72-73
74
75
76
77-78
79
80
81
82
83-84
85
86

Page 58

Jul 2012
INDEX OF ANNEXURES
Particulars
SN
Annex.
No.
1
Page
No.
1
Administrative approval-accorded by GoMP vide letter No.

10197/F-3/31/13/97 dated 24/12/1997
Techno-economic clearance by CEA vide O.M. No.

2/MP/46/96-PAC/11280 302 dated 20/12/2002
2-12
GoMP approval for revised project cost of Rs. 2300 Cr and

Equity infusion - letter No. 3193/13/2007 dated 04/05/2007
13
4
5
6
7
8
9
10
11
12
13
14
15
MPERC Order dated 30/10/2007

MPPGCL letter dated 18/08/2008
MPERC letter No. 1072 dated 29/05/2009
MPPGCL letter No. 240 dated 22/06/2009
MPPGCL letter to CEA dated 17/07/2010
CEA letter dated 08/11/2010
Details of fuel expenditure during Infirm Power generation
Project Cost Statement as per audited books of accounts
Approval for supply of Water by Deptt. Of Water Resources
vide No. 29/12/96/M/31/399 dated 26/4/2002
Approval of M.P.P.C.B. No. 1558/TS/MPPCB/2002 dated
13/9/2002 granting permission to establish the Unit
Environmental clearances from Ministry of Environmental and
Forest, vide their letter dated 19/07/2002.
Approval of S.L.C. for grant of linkage of coal from Korba
Coalfields, vide O.M. dated 16/01/2001.
4
5
6
7
8
9
10
11
12
13
14
15
14-16
17-23
24-25
26-30
31-57
58-59
60-63
64-71
72-73
74-75
76-77
78-79
16
80-85
17
86-90
18
91-97
19
98-99
20
21-31
100
101-111
32
33
34
35-45
46
47
48
112-114
115
116-119
120-132
133-145
146-147
148-149
16
17
18
19
20
21
22
23
24
25
26
27
28
Civil Aviation Clearance from Airport Authority of India vide

letter No. AAI/NAD/ 20012/35/9-ARI dated 26.11.97 &
subsequent extension
Details of balance works as on April 2012
Month wise energy account details of Infirm Energy from
500MW SGTPS Extn. Unt No. 5, provided by SLDC,
MPPGCL letter dated 20/02/2009
MPERC letter dated 27/04/2009
Brief write-up on reasons for project delays
Copies of GoMP equity release letters
PFC Loan No. 20101011 - sanction letter dated 02/05/2003
Weighted average price of Secondary Fuel Oil
Weighted average landed price of coal

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M.P. POWER GENERATING COMPANY LTD.

PETITION FOR APPROVAL OF FINAL GENERATION

Sanjay Gandhi Thermal Power Station

U/s 62 and 86 (1)(a) of the Electricity Act, 2003

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

BEFORE THE M.P. ELECTRICITY REGULATORY COMMISSION

Approval of final Generation Tariff for 500 MW,

M.P. Power Generating Company Ltd, Jabalpur.

1. M.P. Power Management Company Ltd., Jabalpur

The Petitioner is wholly owned company of Government of M.P engaged in

The Company has been incorporated as part of implementation of the power

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

The activities of Generation, Transmission and Distribution have been

Madhya Pradesh Power Generating Co. Ltd., Jabalpur (MPPGCL)

The above mentioned five companies which were registered in November

A sixth Company, namely MP Power Trading Company Ltd, was

The Petitioner is having various power stations/projects in the state of

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

units of 210MW each at SGTPS Birsinghpur out of which 4 Units of 210

Administrative approval for setting up of the 500 MW Unit at Sanjay

500 MW SGTPS Extn. Unit-5, Birsinghpur, was synchronized on

However, during the hearing held in the matter at MPERC on 30/10/2007,

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

The Honble Commission, vide its order dated 18/01/2008 (Annexure-5),

The Honble Commission, vide its order dated 20/10/2008 (Annexure-7),

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

Stage-III. Accordingly, the Commission allowed the Petitioner to claim the

COD of 500 MW SGTPS Extn. Unit-5, Birsinghpur, was achieved on

In Compliance to the Honble Commissions directives, given vide its Order

A presentation on the tariff proposal of MPPGCL was made by the

Honble Commission passed an Order dated 24/11/2009 (Annexure-8) and

Clause 3.6 of MPERC (Terms And Conditions For Determination Of

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

applicable. Since the SGTPS Extn. Unit-5, Birsinghpur, was MPPGCLs

However, the Honble Commission, in its Order dated 24/11/2009, made an

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

In compliance to the Honble Commission directives, given in MPERC

The Honble Commission in its Order dated 22/03/2012, in the matter of

In its petition for determination of provisional tariff (No. 12/2009), the

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

In compliance to the Honble Commissions directives, audited figures for

M.P. Power Generating Co. Ltd

Petition For Final Generation Tariff of 500MW SGTPS Ext.#5

Additional capital expenditure after COD up to 31/03/2011, as per audited

Rs. 3.35 Crs.

As on 31/03/2011, a cumulative amount of Rs. 15.87 Crores which was

Rs. 1.37 Crores