Infra Plan- An Initiative of MSEDCL to Strength its Distribution … · Summer Training Report...
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SUMMER INTERNSHIP REPORT
Infra Plan- An Initiative of MSEDCL
to Strength its Distribution Sector
UNDER THE GUIDANCE OF
Mrs. Indu Maheshwari, Deputy Director, NPTI
&
Mr. Sanjay S. Khandare, Executive Engineer, MSEDCL HO-Mumbai
At
Maharashtra State Electricity Distribution Company Limited, Mumbai
Submitted by
Mr. PRANAY KHOBRAGADE
ROLL NO: 1120812241
MBA (POWER MANAGEMENT)
(Under the Ministry of Power, Govt. of India)
Affiliated to
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
AUGUST 2012
i
TRAINING CERTIFICATE
ii
DECLARATION
I, PRANAY KHOBRAGADE, Roll No 1120812241, student of MBA-Power
Management (2011-13) at National Power Training Institute, Faridabad hereby declare that the
Summer Training Report entitled “Infra Plan-An Initiative of MSEDCL to Strength its
Distribution Sector” is an original work and the same has not been submitted to any other
Institute for the award of any other degree.
A Seminar presentation of the Training Report was made on
________________________ and the suggestions as approved by the faculty were duly
incorporated.
Presentation In-Charge Signature of the Candidate
(Faculty)
Countersigned
Director/Principal of the Institute
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ACKNOWLEDGEMENT
Training is a great opportunity for a student if he has to move forward in his career.
Every lesson, and each instruction learnt and kept in heart and mind during the training proves as
source material and guiding-light for the student in his onward march. This widens his horoscope
of knowledge, strengthen his ability, analytical skills and also help him to build up his own self
and independent outlook. I considered myself very fortunate that I could enjoy the patronage of
this great organization-MSEDCL.
It is great pleasure for me to acknowledge and express my profound gratitude to my
Project Guide Mr.Sanjay S. Khandare- Executive Engineer (Infra Plan) at MSEDCL Head
Office Mumbai, without his help and guidance it would have been difficult for me to complete
this work.
I would also like to acknowledge Mr.A.N Gujar-Chief Engineer (Infra Plan),
Mr.S.K Langote-Superintendent Engineer ( Infra Plan), Mr.Vijay Bhatkar-Executive
Engineer (Infra Plan), Mr.Lakshman Choure-Executive Engineer (Infra Plan), Mr.
Mandar Atre-Executive Engineer (Infra Plan), Mr.Sagar Thota-Junior Engineer (Infra
Plan), Mr.Yogendra Wagh-Junior Engineer ( Infra Plan), Mr.Sujit Sawada -Junior
Engineer (Infra Plan), Mr.Sujitkumar P. Mairale-Technical Assistant (Projects),
Mr.Hemant S. Chavan-Junior Engineer ( R-APDRP), Mr.Shailesh Raut-Junior Engineer (
R-APDRP) at MSEDCL office for their continuous guidance and support during the entire
tenure of this project.
I am very much thankful to Mr. S.K Choudhary, Principal Director, CAMPS (NPTI),
my internal Project Guide Mrs. Indu Maheshwari, Deputy Director, NPTI, for her valuable
inputs and timely guidance and inspiration from time to time to pursue my this venture,
Mrs. Manju Mam, Deputy Director, NPTI, for arranging my internship at MSEDCL. I would
also like to thank all other distinguished faculty members of CAMPS (NPTI) for their support
and guidance throughout this project.
Pranay Khobragade
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EXECUTIVE SUMMARY
MSEDCL’s Infrastructure Plan (Infra Plan) schemes are basically formulated for various
capital renovation and modernization (R&M) works to be taken up for distribution sector during
the assigned time period under the jurisdiction of different Divisions, Circles and Zones. The
basic infrastructure for Divisions, Circles and Zones is based on identified requirements and
needs. These needs have been consolidated into the “Plan for Division”, “Plan for Circle”,
and “Plan for Zone”. Infra Plan project has been developed to take up the top priority works
which will address the infrastructure deficiencies .The care has been taken to ensure that the
expected load growth up to forecasted time period of project completion has been considered.
The Infra Plan works are carried out into different phases (I, II, IIA, IV, V, VIC, VID,
IIB) covering total 120 Divisions in-principle with clearance of Rs 9,71,590.88 lakhs
(approximately) approved by MERC. The financing agencies for Infra Plan schemes are Power
Finance Cooperation, Rural Electrification and Raigad Bank.
These schemes are focused on works that will improve the reliability and quality of
power supply in the area, as well as on enhancing the system’s capacity to meet the growth in
demand and reducing the technical and commercial losses. The proposed works will enable
reduction in the distribution system losses, improvement in the voltage profile and also looking
into the additional units available on account of reduction in losses and spare capacity created,
the schemes payback is very promising.
The Infra Plan department of MSEDCL manages the whole works of Infra Plan schemes
as described in “Phase wise details and process flow involved in Infra Plan Projects” chapter 3 of
this report .The case study of Ballarshah Division is done in chapter 4 which shows the technical
and commercial benefits achieved with the implementation of Infra Plan project schemes.
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LIST OF FIGURES
Figure No. Page No.
1 DPR submission & approval process 28
2 Flow chart of Financial Institute Process 31
3 Flow chart of E-Tendering Registration Process 32
4 Flow chart of Tendering Process 37-38
5 Flow chart of Milestone Preparation Process 39
6 Flow chart of Material Inspection Process 41
7 Flow chart of 70% Bill Payment Process 44
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LIST OF TABLES
Table No. Page No.
1.6.1 Difference between Infrastructure Plan & R-APDRP 4-5
3.1 Work to be carried out in Infrastructure Plan 19
3.1.1.1 Cost analysis of Infrastructure Plan Phase 1 20
3.1.2.2 List of Zones/Circles/Divisions covered in Infrastructure Plan
Phase 1
20-21
3.1.2.1 Cost analysis of Infrastructure Plan Phase II 21
3.1.2.2 List of Zones/Circles/Divisions covered in Infrastructure Plan
Phase II
21-23
3.1.3.1 Cost analysis of Infrastructure Plan Phase IIA 23-24
3.1.3.2 List of Zones/Circles/Divisions covered in Infrastructure Plan
Phase IIA
24-25
3.1.4.1 Cost analysis of Infrastructure Plan Phase IV 25
3.1.4.2 List of Zones/Circles/Divisions covered in Infrastructure Plan
Phase IV
25
3.1.5.1 Cost analysis of Infrastructure Plan Phase VIC 26
3.1.5.2 List of Zones/Circles/Divisions covered in Infrastructure Plan
Phase VIC
26
3.1.6.1 Cost analysis of Infrastructure Plan Phase VID
27
3.1.6.2 List of Zones/Circles/Divisions covered in Infrastructure Plan
Phase VID
27
3.2.4.1 Tender fee excluding tax 36
3.2.6.1 Minimum Turn Over of Vendors 42
4.1.1.d.1 Conductor size & Maximum loading 52
4.2.2.1 Basic data of Ballarshah Division 58
4.2.4.1 Cost benefit analysis of Ballarshah Division 60
4.2.5.I.1 Phasing of expenditure of Ballarshah Division 61
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Table No. Page No.
4.2.5.II.A.1 Benefits due to additional sale of energy 61
4.2.5.II.B.1 Benefits due to saving in loss 62
4.2.5.III.1 Financial benefits due to additional sale of energy 62
4.2.5.VI.1 Total benefit to utility due to scheme 63
4.2.5.VII.1 IIR calculation 63-64
4.2.6.I.a.1 Base line loss levels & Target loss levels 65
4.2.6.I.c.1 HT-LT ratio present & projected level 65
4.2.6.II.1 Benchmarking Parameters 67
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ABBREVIATIONS
Abbreviations Expended Versions
APDRP Accelerated power Development Reform Program
AT&C Aggregate Technical and Commercial Loss
AMR Automatic Meter Reading
BEST Bombay Electricity Supply Transmit
CA Officer Contemporary Authority Officer
DTC Distribution Transformer Centre
FY Financial Year
GOI Government of India
GIS Geographical Information System
HVDS High Voltage Distribution System
HT Line High Tension Line
IR Internal Reform
IIR Internal Rate of Return
LVDS Low Voltage Distribution System
LT line Low Tension line
MIS Management Information System
MSEB Maharashtra State Electricity Board
MSEDCL Maharashtra State Electricity Distribution Company Limited
MERC Maharashtra State Electricity Regulatory Commission
O&M Operation and Maintenance
PFC Power Finance Cooperation
PGCIL Power Grid Corporation of India Limited
RTU Remote Terminal Unit
R&M Renovation and Modernization
RCI Connection Residential Commercial and Industrial Connection
REC Rural Electrification Cooperation
RA Officer Regional Authority Officer
SOP Standard of Performance
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ABBREVIATIONS
Abbreviations Expended Versions
TPIEA-EA Third Party Independent Evaluation Agency - Energy Audit
USO Universal Service Obligation
USAID United State Agency for International Development
WEC-IMC World Energy Council Indian Member Committee
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TABLES OF CONTENTS
CERTIFICATE--------------------------------------------------------------------------------------------- (i)
DECLARATION------------------------------------------------------------------------------------------- (ii)
ACKNOWLEDGEMENT-------------------------------------------------------------------------------- (iii)
EXECUTIVE SUMMARY------------------------------------------------------------------------------ (iv)
LIST OF FIGURES---------------------------------------------------------------------------------------- (v)
LIST OF TABLES------------------------------------------------------------------------------------ (vi-vii)
ABBREVIATIONS---------------------------------------------------------------------------------- (viii–ix)
CHAPTER-1
INTRODUCTION
Page No.
1.1 Introduction------------------------------------------------------------------------------------------ (1)
1.2 Problem Statement---------------------------------------------------------------------------------- (2)
1.3 Objective of Project ----------------------------------------------------------------------------- (2-3)
1.4 Significance of Project----------------------------------------------------------------------------- (3)
1.5 Role of MERC in Infra Plan Projects------------------------------------------------------------ (3)
1.6 Difference between R-APDRP & Infra Plan Projects--------------------------------------- (4-5)
1.7 About Organization
1.7.1 Unbundling of MSEB and formation of MSEDCL--------------------------------------- (6)
1.7.2 Mission Statements---------------------------------------------------------------------------- (7)
1.7.3 Functions of MSEDCL “Action Plan”--------------------------------------------------- (7-9)
1.7.4 Organization Structure of MSEDCL------------------------------------------------------ (10)
CHAPTER-2
LITERATURE SURVERY, POLICY AND RESEARCH METHODOLOGY
Page No.
2.1 Literature Review------------------------------------------------------------------------------ (11-18)
2.2 Research Methodology Adopted---------------------------------------------------------------- (18)
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CHAPTER-3
PHASE WISE DETAILS & PROCESS FLOW INVOLVED IN INFRASTRUCTURE
PLAN PROJECTS
Page No.
3.1 Phase wise details of Infrastructure Plan Projects
3.1.1 Infrastructure Plan Phase I-------------------------------------------------------------- (19-21)
3.1.2 Infrastructure Plan Phase II------------------------------------------------------------- (21-23)
3.1.3 Infrastructure Plan Phase IIA----------------------------------------------------------- (23-25)
3.1.4 Infrastructure Plan Phase IV---------------------------------------------------------------- (25)
3.1.5 Infrastructure Plan Phase VIC-------------------------------------------------------------- (26)
3.1.6 Infrastructure Plan Phase VID-------------------------------------------------------------- (27)
3.1.7 Infrastructure Plan Phase IIB--------------------------------------------------------------- (28)
3.2 Process Flow Involved in Infrastructure Plan Projects
3.2.1 DPR Submission and Approval Process----------------------------------------------- (28-29)
3.2.2 Financial Institutes ----------------------------------------------------------------------- (29-30)
3.2.3 E-Tendering Registration Process------------------------------------------------------ (32-35)
3.2.4 Tendering Process------------------------------------------------------------------------- (35-39)
3.2.5 Milestone Chart Preparation------------------------------------------------------------- (39-40)
3.2.6 Material Inspection Process------------------------------------------------------------- (40-43)
3.2.7 Billing Process----------------------------------------------------------------------------- (43-48)
3.2.8 Project Completion and Handling Over Taking Over------------------------------------ (48)
3.2.9 Third Party Quality Inspection of Work (Sample Basis) ------------------------------- (49)
CHAPTER -4
IMPLICATION STRATEGIES & COST BENEFIT ANALYSIS OF INFRASTRUCTURE
PLAN PROJECT
Page No.
4.1 Implication strategy of Infrastructure Plan Project
4.1.1 Design Methodology-------------------------------------------------------------------- (50-54)
4.1.2 Implementation and Monitoring------------------------------------------------------- (55-56)
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4.2 Case study of Ballarshah Division
4.2.1 Introduction of Ballarshah Division--------------------------------------------------- (57-58)
4.2.2 Basic Data of Ballarshah Division -------------------------------------------------------- (58)
4.2.3 Rationale and Method of calculation-------------------------------------------------- (59-60)
4.2.4 Cost Benefits Analysis----------------------------------------------------------------------- (60)
4.2.5 Financial Viability Calculation--------------------------------------------------------- (61-64)
4.2.6 Benchmarking---------------------------------------------------------------------------- (64-67)
CHAPTER-5
CONCLUSION, RECOMMENDATIONS & FUTRUE SCOPE
Page No.
5.1 Conclusion-------------------------------------------------------------------------------------- (68-69)
5.2 Recommendations or Suggestions---------------------------------------------------------- (70-71)
5.3 Future Scope--------------------------------------------------------------------------------------- (71)
BIBILOGRAPY-------------------------------------------------------------------------------------- (72-73)
APPENDIX
1) Formulae for calculation of Table No.4.2.4.1--------------------------------------- (74)
2) Formulae for calculation of Table No.4.2.5.I.1------------------------------------- (74)
3) Formulae for calculation of Table No.4.2.5.II.A.1--------------------------------- (74)
4) Formulae for calculation of Table No.4.2.5.II.B.1--------------------------------- (75)
5) Formulae for calculation of Table No.4.2.5.III.1----------------------------------- (75)
6) Formulae for calculation of financial benefits due to saving in losses---------- (75)
7) Formulae for calculation of Table No.4.2.5.VI.1 ---------------------------------- (75)
8) Formulae for calculation of Table No.4.2.5.VII.1---------------------------------- (75)
9) Formulae for calculation of Table No.4.2.6.II.1------------------------------------ (76)
ANNEXURE I---------------------------------------------------------------------------------------- (77-78)
ANNEXURE II -------------------------------------------------------------------------------------- (79-80)
ANNEXUREIII------------------------------------------------------------------------------------------ (81)
ANNEXURE IV------------------------------------------------------------------------------------------ (82)
ANNEXURE V------------------------------------------------------------------------------------------- (82)
ANNEXUREVI--------------------------------------------------------------------------------------- (83-84)
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CHAPTER-1
INTRODUCTION
1.1 Introduction
The Maharashtra State Electricity Board (MSEB) was established way back in 1960 as
per the Section 5 of The Electricity Supply Act 1948 & entrusted with the work of expansion of
electrical network throughout the State of Maharashtra. The MSEB was looking after generation,
transmission, and distribution of electricity in State of Maharashtra barring Mumbai. But with
enactment of Electricity Act 2003, MSEB was unbundled into 4 companies:-
a) MSEB Holding Company Limited
b) Maharashtra State Electricity Distribution Company Limited (Maha Vitran)
c) Maharashtra State Electricity Generation Company Limited (Maha Genco)
d) Maharashtra State Electricity Transmission Company Limited (Maha Transco)
MSEDCL came into existence after unbundling of MSEB. It took responsibility of
distribution of electricity in the entire State of Maharashtra barring the jurisdictions of utilities
like BEST and Reliance. The infrastructure inherited by MSEDCL from erstwhile MSEB is quite
old, deteriorated and overloaded too. There were interruptions in the supply due to failure of old
equipment’s, lines which were meeting the load growth. It has, therefore, been felt essential to
take immediate measures, in order to meet the challenges thrown by the Electricity Act 2003.
The outcome of the above is the proposed Infrastructure Plan worth Rs 9, 71,590.88 lakhs
(approximately).
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1.2 Problem Statement
Due to the old, deteriorated and overloaded system and high transformer failure rate the
consumers are put to a great deal of hardship. There is an ever increasing demand for additional
supply which the existing system is unable to handle. These constraints were further escalating
considering the expected load growth and mandatory obligations under the Standard of
Performance (SOP) and Supply Code and Conditions of Supply. In order to overcome these
difficulties the proposed Infra Plan investments have been planned with due consideration of the
problems, needs and priorities of the Division, Circles and Zones in Maharashtra State by
MSEDCL. The case study on Ballarshah Division is done in which shows the technical and
commercial benefits after implementation of Infra Plan project.
1.3 Objective of Project
Infra Plan projects helps to achieve the following broad objectives:
a) Increase the system reliability and improve the Standards of Performance (SOP) through
reduction in interruptions, improvement in the reliability benchmarks, reducing the DTC failure
rate to 4% in urban areas and 7% in rural areas, improving the power factor through a proper
Reactive Power Management Plan, improving the voltage profile, and enhancing customer
services and reliability through introduction of SCADA, call centers and consumer facility
centers in Municipal Corporation areas.
b) Meet the load growth demand so as to enable access to electricity by 2012 through technical
loss reduction and capacity addition and augmentation in the substations, distribution lines,
power transformers and distribution transformers.
c) Reduce the distribution system (Technical) losses (to reduce the requirement for costly power
purchases) through addition and augmentation of substations, erection of lines (especially more
HT lines as compared to the LT lines), installation of new and replacement of old distribution
transformers, installation of capacitors to help improve the power factor, enhancement of line
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capacity by upgrading the existing lines, replacing old, worn out and inaccurate meters to reduce
commercial losses.
Based on the above needs and priorities the Infra Plan project has been formulated to
achieve the following objectives:
i) Improving the reliability and quality of the power supply.
ii) Addition of infrastructure to meet load growth.
iii) Reduction of technical and commercial losses.
iv) Strengthening of existing infrastructure to overcome the existing deficiencies.
1.4 Significance of Project
This project is important to study the challenges faced by existing infrastructure in
distribution utilities for supply of electricity to its consumers. As it is observed, that the
consumers are put to a great deal of hardship due to the old, deteriorated and overload system
and high transformers failures rate. There is an increasing demand for additional supply which
the existing electric distribution infrastructure is unable to handle. This project helps to
understand the need of building new infrastructure and renovating and modernizing existing
infrastructure of distribution utility .In this project report describes initiative taken by MSEDCL
to strengthen its distribution of electricity by Infrastructure plan projects. The cost benefits
analysis of Ballarshah Division shows benefits of implementation of Infra Plan projects.
1.5 Role of MERC
To lay down the approach and methodology for ex-ante assessment of major investment
schemes for considering in-principle clearance.
To spell-out the evaluation criteria for such ex-ante assessment.
To lay down guidelines for the submission of Feasibility Reports so as to facilitate easy
evaluation and monitoring of such proposed investment schemes against benchmark
figures.
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1.6 Difference between R-APDRP & Infra Plan Projects
(Table No. 1.6.1:- Difference between R-APDRP & Infrastructure Plan)
Sr. No. R-APRRP Infrastructure Plan
1 Introduction i) R-APDRP is GOI’s initiative to
reform Distribution Sector.
i) It intends to strengthen MSEDCL
present distribution sector by
increasing infrastructure.
2 Proposed
Scheme
Projects under the scheme shall be
taken up in Two Parts.
i) Part-A shall include the projects
for establishment of baseline data
and IT applications for energy
accounting / auditing & IT based
consumer service centres.
ii) Part-B shall include regular
distribution strengthening projects
Projects under the scheme shall be
i) Intended to take up works of
electrification, supply, test,
transport, construction, erection,
testing and commissioning of
sub-transmission lines, power
transformers, new-substations,
augmentation of existing S/S,
11kV/22kV lines, distribution
transformer centres of varying
capacities, renovation &
modernization works.
3
Program
Coverage
i) It is proposed to cover urban areas
- towns and cities with population of
more than 30,000 (10,000 in case of
special category states).
i) It contains 81 tenders covering
120 divisions including rural and
urban areas of Maharashtra.
4 Funding
Mechanism
i) GOI will provide 100% loan for
part A of the R-APDRP schemes.
ii) GOI will provide up to 25% (90%
for special category States) Loan for
Part B of the R-APDRP schemes.
iii) The entire loan from GOI will be
routed through PFC/REC.
i) For Trunkey Contract 80% loan is
provided by funding agencies and
20% is equity of Government of
Maharashtra state.
ii) The funding agencies are PFC,
REC and Raigad Bank.
5
5 Conversion
of GoI Loan
into Grant
i) The entire amount of GoI loan
(100%) for part A of the project shall
be converted into grant after
establishment of the required Base-
Line data system within a stipulated
time frame and duly verified by
TPIEA.
ii) Up to 50% (90% for special
category States) loan for Part-B
projects shall be converted into grant
in five equal tranches on achieving
15% AT&C loss in the project area
duly verified by TPIEA on a
sustainable basis for a period of five
years.
i) There is no such provision of
converting loan into grant. The loan
taken from Financial Institutions is
paid back with interest within the
fixed time-period as specified in the
terms and conditions of loan
documents.
6 Progress by
MSEDCL
i) Under Part-A, Rs 324.29 Crs has
been sanctioned for 130 towns out of
133 towns.
ii) Under Part-B, Rs 3284.20 Crs has
been sanctioned for 122 towns.
i) Infrastructure Plan Phase I, II, IIA,
IV, VI, VIC, IIB are under
execution.
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1.7 About Organization
1.7.1 Unbundling of MSEB & formation of MSEDCL
Erstwhile Maharashtra State Electricity Board was looking after generation, transmission
& distribution of electricity in the State of Maharashtra barring Mumbai. But with enactment of
Electricity Act 2003, MSEB was unbundled into 4 Companies viz. MSEB Holding Co. Ltd.,
Maharashtra State Electricity Distribution Co. Ltd., Maharashtra State Power Generation Co.Ltd.
and Maharashtra State Electricity Transmission Co. Ltd. on 6th June 2005.
The MSEDCL supplies electricity to a staggering 1.93 crore consumers across the
categories all over Maharashtra excluding the island city of Mumbai. There are about 1.43 crore
residential,31.70 lakh agricultural, 13.79 lakh commercial and 3.63 lakh industrial consumers in
MSEDCL area which fetch annual revenue of about Rs. 34,000 crore. MSEDCL’s sources of
power include thermal, hydro, gas and non-conventional sources like solar, wind, bagasse etc.
apart from hydro power of Koyna. Thermal power constitutes the major share which it gets from
Mahagenco projects, Central Sector projects.
In terms of infrastructure, MSEDCL operates a vast far flung network comprising of 33
KV, 22 KV & 11 KV lines, sub-stations and distribution transformers spread over 3.08 lakh sq.
kms geographical area of Maharashtra covering 41,095 villages and 457 towns. It has 34,151
substations (33 KV) with 55,218 MVA of transformation capacity, 10334 HV feeders, and
several thousand circuit kms of HT and LT lines. The MSEDCL has a workforce of about 77,109
employees. This force is the real asset of the company. The welfare and well-being of this asset
has been given top priority by the company. As such it has enhanced the scope of training
facilities to a great extent. In addition to the existing 4 training centres, MSEDCL has recently
established well equipped 25 small training centres at Circle offices which impart necessary
training to line staff. Every year about 30000 employees are put through
refresher/professional/HR trainings. Safety is given special importance and safety training is
imparted to line staff on regular basis. Engineers are also deputed to various other well reputed
training centres.
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1.7.2 Mission Statements
a) We as a professional company, rededicate ourselves to serve all consumers by
extending reliable and quality power supply at reasonable and competitive tariffs so as to boost
agricultural, Industrial and overall economic development of Maharashtra.
b) We commit to honesty, integrity and transparency in actions to achieve higher
standards of consumer’s satisfaction.
c) We aim to achieve technology excellence and financial turnaround for the overall
benefits of the customers.
d) We will strives hard for system improvement and stress upon primitive maintenance.
e) We will ruthlessly curb the theft of electricity.
f) We will encourage and support energy saving activities and demand side management
thereby optimizing the use of electricity.
g) We will fulfill our commitment to society by improving quality of life.
1.7.3 Functions of MSEDCL “Action Plan”
1. Improving quality of supply and retention of interruptions.
Priority Focus on :-
-Receipts and preventive maintenance of distribution systems.
-Up gradation renovation and modernization of distribution system.
2. Consumer Grievances Redressal Systems.
Single window customer facilitation centres.
MERCs standards of performance (SOP) as customer charter.
RCI connections to be released on demand.
3. Proactive distribution network planning with viable funding plan.
Preparing sub-division wise information about consumer load profile and demand
growth.
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Infrastructure up gradation and strengthening plan-subdivision wise.
Preparing viable funding plan sub division wise.
4. Distribution system loss reduction
Introduction of complete accountability through energy accounting and complete
metering of consumers.
100% DTC metering and DTC wise loss reduction program.
Catching & prosecution of theft & sever action those against who abet in theft.
Reducing transformer losses and also line losses through HVDS & improve HT/LT ratio.
5. Improvement in collection Efficiency.
Reduction of live arrears.
Reduction of P.D. Arrears
Zero tolerance for non-payment of bills.(Proper timely disconnection)
100% billing on the basis of actual meter reading and elimination of average billing.
Use of spot billing and other special billing & collection techniques.
6. Circles to acts as profit centres.
Circles to buy the power they requires, pay for it and meet their expenses through their
own income.
7. Use of technological advance and computerization for improving the efficiency,
accountability, information levels and consumer satisfaction .e.g.
Distribution automation projects like AMR, SCADA, and MIS.
Call Centers in all urban areas.
E-tendering
Networking mapping through Geographical Information System (GIS)
8. Improved services to agriculture consumers.
Reduction of distribution transformer failure rate.
9
9. Measures to improve working conditions of employees.
Improvement in work culture.
Measure to improve safety during working.
Working conditions of employees to be rewarded.
Special Training programs for employees to improve motivation & on dealing with
consumers.
10. Demand side management and peak load management. (Measure shedding)
Special separate feeders for Gaothans.
Energy saying schemes for residential public lighting, public water works and
Agriculture consumers.
Reactive Power Management through capacitor installation.
10
1.7.4 Organization Structure of MSEDCL
11
CHAPTER-2
LITERATURE SURVERY, POLICY & RESEARCH METHODS
2.1 Literature Review
[1] Turan Gonen (1986) explains in his book about distribution system planning which says that
system planning is essential to assure that the growing demand for electricity can be satisfied by
distribution system additions which are both technically adequate and reasonably economical.
Even though considerable work has been done in the past on the application of some type of
systematic approach to generation and transmission system planning, its application to
distribution system planning has fortunately been somewhat neglected. In future, more than in
past, electric utilities will need a fast and economical planning tool to evaluate the consequences
of different proposed alternatives and their impact on the rest of the system to provide the
necessary economical, reliable ,and safe electric energy to consumers. The objective of
distribution system planning is to assure that growing demand for electricity, in term of
increasing growth rates and high load densities, can be satisfied in an optimum way by additional
distribution systems from the secondary conductors through the bulk power substations, which
are both technically adequate and reasonably economical. All these factors and others, e.g., the
scarcity of available land in urban areas and ecological considerations, can put the problem of
optimal distribution system planning beyond the resolving power of the unaided human mind.
Distribution system planners must determine the load magnitude and its geographic location
.Then the distribution substations must be placed and sized in such way as to serve the load at
maximum cost effectiveness by minimizing feeder losses and construction costs, while
considering the constrains of service reliability. In the past, the planning for the other portions of
the electric power supply system and distribution system frequently has been authorized at the
company division level without review of coordination with long-range plans. As a result of the
increasing cost of energy, equipment, and labor, improved system planning through use of
efficient planning methods and techniques is inevitable and necessary. The distribution system is
particularly important to an electrical utility for two reasons: (1) its close proximity to the
ultimate customer and (2) its high investment cost.
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[2] MERC (2005) stated the guidelines for in-principle clearance of proposed investment
scheme. This guide lines are followed by MSEDCL for Infrastructure Plan projects. The
Electricity Act, 2003 has given State Electricity Regulatory Commissions wide- ranging powers
and flexibility to regulate the power sector. Under Section 61, the Commission has the power to
specify the terms and conditions for the determination of tariff and in doing so it is required to be
guided by the factors which would encourage competition, efficiency, economical use of the
resources, good performance and optimum investments so that generation, transmission,
distribution and supply of electricity is conducted on commercial principles and the consumer’s
interest is safeguarded. Under the proviso to Regulation 4.1 of the Tariff Regulations, the need to
link tariff adjustments to increases in the productivity of capital employed is also to be kept in
view. While Capital Investment is required to be made by Licensees for various purposes like
the creation of new infrastructure to meet load growth, to meet statutory requirements, to
strengthen the existing system and increase its efficiency, replace old/ obsolete assets, any such
capital investment increases the capital base and consequently the reasonable return thus
affecting the tariff to consumers. It is therefore necessary to ensure that such capital investment
schemes being proposed are necessary and justified, and do not impose an unnecessary burden
on consumers by way of tariff. During the Tariff Determination processes undertaken so far,
various objectors raised the issue of the prudence of the capital investment being made by
Licensees. After examining all aspects in this regard, the Commission directed Licensees Tata
Power Company (TPC) and Reliance Energy Limited (REL) to submit details in respect of all
proposed Capital Investments exceeding Rs. 10 crores for approval to the Commission.
[3] MERC (2005) according to the (Standards of Performance of Distribution Licensees, Period
for Giving Supply and Determination of Compensation) Regulations, 2005 have set up Standards
of Performance (SOP) for distribution licensees. It states that the Distribution Licensee shall
maintain the standards of performance specified in these Regulations: Provided that any time
limits set out in these Regulations shall refer to the maximum time permitted for performing the
activities to which they relate. Any failure by the Distribution Licensee to maintain the standards
of performance specified in these Regulations shall render the Distribution Licensee liable to
13
payment of compensation to a person claiming such compensation under the provisions of the
Act.
[4] MERC (2005) according to the Electricity Supply Code and Other Conditions of Supply
Regulations, 2005 stated about maintaining the property of the distribution licensee. No person
other than an Authorised Representative or any other person authorised under the Act and the
rules and regulations made thereunder shall be authorised to operate, handle or remove any
electrical plant, electric lines or meter or break, remove, erase or otherwise interfere with the
seals, name plates and distinguishing numbers or marks affixed on such property of the
Distribution Licensee placed in the consumer’s premises: Provided that such Authorised
Representative shall not perform any of the acts under this Regulation 7 except in the presence of
the consumer or his representative: Provided further that the Distribution Licensee shall provide
prior intimation to the consumer of the visit of the Authorised Representative to the consumer’s
premises, except where the Distribution Licensee has reason to believe that any person is
indulging in unauthorized use of electricity and / or is committing an offence of the nature
provided for in Part XIV of the Act on such premises.
[5] Anshu Bharadwaj el at mentioned in “Distributed Power Generation: Rural India – A Case
Study” about the rural electricity supply in India that has been lagging in terms of service
(measured by hours of supply) as well as penetration. Only 31% of the rural households have
access to electricity, and the supply suffers from frequent power cuts and high fluctuations in
voltage and frequency, with so-called blackouts and brownouts. The demand-supply gap is
currently 7.8% of average load and 13% of peak demand at current prices, which are heavily
subsidized, on average. In order to bridge this gap and meet anticipated growth, it is necessary to
double the present capacity, i.e., install an additional generation capacity of 1, 00,000 MW by
2012. This would require an investment of Rs. (Rupees) 7,500 billion (approximately $150+
billion) including investments in transmission & distribution. A major bottleneck in the
development of the power sector is the poor financial state of the utilities, which can be
attributed to the lack of adequate revenues and state subsidies for supply to the rural subscribers.
Of the total power generated, only 55% of the kilowatt-hours are billed, and only 41% of this is
collected. The average cost of supply is Rs. 3.04/kWh and the average revenue is only Rs.
14
2.12/kWh. This is due to a skewed tariff policy of subsidizing the power supplied to agricultural
consumers (in some states the power is free to agricultural subscribers!) at the cost of
commercial and industrial consumers. This, coupled with the fact that the electricity supplied to
irrigation pumps is not metered, provides for wasteful consumption and theft. Agricultural
consumption, to the extent estimated, is over 30% of total consumption in the country.
Transmission and distribution (T&D) losses are over 25%, which are due to both technical losses
and theft (termed “commercial losses” in official publications). The State Electricity Regulatory
Commissions in several states have attempted to rectify these tariff imbalances by increasing the
agricultural tariff, only to have the governments reverse these steps due to strong opposition
from farmers. The farmers also complain that the electricity supplied to the rural areas is
intermittent and of poor quality leading to high implicit costs because of damage to their
equipment and downtime. A World Bank study on India’s power sector describes a “vicious
circle” in which the skewed tariff policy and poor financial health of utilities leads to low
investments in upgrading power quality, which, in turn, creates opposition for tariff reforms
among consumers; which only exacerbates the already poor financial condition of the utilities.
The present policies of building large centralized generation and extended distribution networks
are clearly unlikely to solve the problems of rural electricity supply, at least in the near future.
[6] MSEDCL (2009) in its bid document invitation & instructions to bidder (Version - II)
Volume I of V state that the Chief Engineer (Infra) (hereinafter referred to as "the Employer"),
wishes to receive bids for supply, test, transport, construction, erection, testing and
commissioning of sub-transmission lines, power transformers, new substations, augmentation of
existing S/S, 11kV/22kV/33kV lines, distribution transformer centers of varying capacities,
renovation & modernization works and other allied works, including a two year guarantee
(defects liability) period, for works under the Infrastructure Plan Phase-II A Project on single
point responsibility, ”Turnkey” basis as defined in these bidding documents (hereinafter referred
to as "the Works”), and as described in the Bidding Data. The Works are to be carried out at
various sites in the State of Maharashtra, as described in the Bidding Data. For convenience and
efficiency, works are grouped into Tenders on a division wise basis. Bidders may bid for one or
more than one of the contracts (Tenders), as further defined in the bidding documents, and shall
submit separate price bids for each contract. However a bidder is not permitted to submit price
15
bids against more than 10 (Ten) tenders. As regards Technical Bid, the bidder shall submit only
one bid which will be common for all Tenders quoted for. Bidders wishing to offer discounts in
case they are awarded more than one contract will be allowed to do so, provided that those
discounts are included in the Form of Price Bid or submitted in writing before the deadline for
submission. All bids and offers of discounts shall be opened and evaluated simultaneously so as
to determine the bid or combination of bids, including discounts, which offers the lowest
evaluated cost to the Employer. The successful Bidder(s) will be required to start works
simultaneously in all areas within the Division as per the requirements of the bidding document
and to coordinate his activities so that various Works are completed and commissioned in their
entirety so as to provide early benefits to the Employer and its customers. The successful bidder
will be expected to complete the Works, including testing and commissioning, within the Time
for Completion stated in Section 2, Bidding Data, from the date of Notice to Proceed with the
Works. In addition, the successful bidder will be required to guarantee the Works for a period of
24 (twenty four) months after completion of the Works and acceptance by the Employer. Time is
the essence in completing the Works. The successful Bidder will be entitled to an incentive for
early completion, as described in Sub-Clause 8.12 of Section 6, Volume-II, General Conditions
of Contract, if the entire Work, including the testing and commissioning, is completed prior to
the Time for Completion. Bids shall be complete and cover all Works described in the Schedule
of Prices. Any item of works required for completion of useful section shall be deemed to be
included in bidder’s scope irrespective of whether it is specifically mentioned in the price
schedules. Bidder should note that obtaining permissions from statutory bodies such as Railways,
Forest Departments, Local bodies etc., wherever required for execution of works, shall be
entirely in Bidder’s scope. Partial bids, or bids which do not cover the entire scope of the project
will be treated as incomplete and not responsive to the terms and conditions of bidding and are
liable to be rejected.
[7] USAID (2010), in publication prepared by PA Government Services, Inc. on (The Smart Grid
vision For India’s power sector) for USAID mentioned about the engineering economics and
financing. This says that the early 2000s, the Government of India’s policy has been to balance
the development of generation, transmission, and distribution. This policy has served as the
touchstone for a number of financing innovations to deal with the power sector’s large capital
16
investment deficit: unbundling the vertically-integrated power companies to improve their
performance and accountability, attracting increasing private sector participation, expanding all
sources of capital market financing (bonds, listings and privatizations), and continuing public
and multilateral investments in strengthening and expanding transmission and distribution. These
new capital sources are expected to play a role in smart grid roll-outs in India. A number of
problems, however, will continue to hamper smart grid deployments and must be factored in
during project design, including the determination of the financial feasibility of investing in
projects. The poor balance sheets of many electric utilities, coupled with the lack of an efficient
procurement and project management culture at most State Electricity Boards, has resulted in
inadequate investments in state transmission and distribution systems. In addition, many of the
utilities that are undertaking projects under the Restructured Accelerated Power Development
and Reform Programme lack management experience with R-APDRP; this lack of experience
spans the full project cycle, from formulation to appraisal, procurement, construction supervision
and commissioning. As a result of the lack of automation (computerization and
telecommunications) in their businesses, the distribution companies also have a serious skills
deficit in information and communications technology (ICT). Many will also be hard pressed to
attract qualified talent to join bureaucracies that are still dominated by work cultures and practices of the
past. The publication further explained about smart grid as what exactly is smart grid? Simply
put, a smart grid is the integration of information and communications technology into electric
transmission and distribution networks. The smart grid delivers electricity to consumers using
two-way digital technology to enable the more efficient management of consumers’ end uses of
electricity as well as the more efficient use of the grid to identify and correct supply demand-
imbalances instantaneously and detect faults in a “self-healing” process that improves service
quality, enhances reliability, and reduces costs. Thus, the smart grid concept is not confined to
utilities only; it involves every stage of the electricity cycle, from the utility through electricity
markets to customers’ applications.
[8] A.S Pabala (2011) mentioned in his book (Electric Power Distribution) significance of
distribution automation. The demand on electric power supply in India has changed drastically,
both qualitatively and quantitatively. With increasing development the dependence on electric
power supply has increased considerably .While demand has increased, the need for a steady
17
power supply with minimum power interruptions and fast fault restoration has also increased. To
meet these demands, automation of the power distribution system involved in controlled
networks are equipped with facilities for remote operation (sensors motor drives or
actuators).The control interface equipment (RTU) must with stand extreme climatic conditions.
Also, control equipment at each location must have a dependable power sources. Distribution
Automation (DA) enables an electric utility to remotely monitor coordinate, and operates
distribution network in a real time mode. The core ingredient are local intelligence, data
communication and supervisory control , and monitoring .Automation has the net effects of
increasing the overall level of efficiency of the distribution system, in addition to improving
overall service. It will become more active in the future to deliver maximum value to consumer.
Smart grids will be soon adding consumer values. Open access will grow. Implementation of
best practice will optimise the financial, human and natural capitals for attaining excellence and
sustainability of electric power distribution system. In the Metering, Billing and collection:
Electricity metering is undergoing its greatest transformation. Smart metering and billing is
moving closer to full automation, computerisation and smart grid deployments, promising major
energy savings. In the Natural Distribution system:-Sustainable distribution system development
is the only future focus choice. We are to reinvent energy resource and their use.
[9] MERC (2011) in Multi Year Tariff regulations, 2011 stated distribution losses. The
Distribution Licensee shall be allowed to recover the approved level of distribution losses arising
from the Retail Supply of electricity, excluding wheeling losses :Provided that the Commission
may stipulate a trajectory for distribution losses for Retail Supply of electricity in accordance
with these Regulations as part of the Order on the Business Plan filed by the Distribution
Licensee: Provided that any variation between the actual level of distribution losses and the
approved level shall be dealt with, as part of the Mid-term Performance Review and at the time
of final truing up at the end of the Control Period.
18
[10] Budget (2012), The Power sector reforms, Energy, Infrastructure and Communications
Budget 2012-13 stated about Improving Distribution and Opening Bulk Supply to Competition:
The next step is to introduce competition and open access at bulk level. Most power distribution
is still the monopoly of SEBs, with mounting losses and poor services. Three different models of
restructuring are possible; with States adopting whichever model works best and setting-up
surrogate competition amongst these modes: (a) public private partnership (PPP) mode with open
access. Long-term concessions granted to private distribution companies, incorporating high
investment requirements, performance standards, tariffs subject to regulation, and permitting
bulk consumers open access to networks (similar to telecom). (b) Distribution franchisee mode.
Competitive bidding to select franchisee operators, where ownership of assets remains with state
distribution companies and licencee supplies bulk electricity to franchisee at predetermined
prices, franchisee retains predefined portion of revenues and pays distribution companies annual
rate bids, T&D losses are monetized and borne by distribution companies with incentives to
lower them and tariffs remain the same as in larger licensing area. (c) Performance-based State
electricity distribution companies. With management independence and overhaul, and strict
commercial performance standards, some stronger state distribution companies could potentially
provide competitive services, with bulk consumers again permitted open access to networks.
2.2 Research Methodology adopted
The report has been compiled on the basis of secondary data sources. Data on
Infrastructure Plan Phase I, Infrastructure Plan Phase II, Infrastructure Plan Phase IIA,
Infrastructure Plan Phase IV, Infrastructure Plan Phase VIC, and Infrastructure Plan Phase IIB
have been collected from the information available on the internet of MSEDCL website, MERC
website, reports and periodical journals and bid documents of Infra Plan department.
19
CHAPTER-3
PHASE WISE DETAILS & PROCESS FLOW OF
INFRASTRUCTURE PLAN PROJECTS
3.1 Phase wise details of Infrastructure Plan Projects
The Infra Plan projects are spread out with 81 tenders and 120 divisions. The MERC has
provided in-principle clearance of Rs 971590.88 lakhs (approximately) through financing
agencies such as Power Finance Cooperation, Rural Electrification and Raigad Bank. The project
completion period is two years (approximately) from the date of issuance of “Letter of Award”
to the turnkey contractors. List of major works to be covered under Infra Plan is given below.
(Table No.3.1: - Work to be carried out in Infrastructure Plan)
Sr. No Description Quantity / Measurement
1 New Sub-stations 33/11KV 556 nos./ 3470 MVA
2 Augmentation of Sub-stations 313 nos. / 733 MVA
3 Additional Power Transformer 315 nos. / 1700 MVA
4 New HT Lines 50768 Km
5 New LT Lines 17018 Km
6 New DTCs Installation 67072 nos. / 5063 MVA
7 HVDS DTCs Installation 23356 nos. / 584 MVA
3.1.1 Infrastructure Plan Phase I
In Infrastructure Plan Phase I, 17 tenders (36 Division) where taken with estimated
project cost of Rs 3,057.18 crores. From 17 tenders only 11 tender (25 Divisions) were issued
Letter of Award amounting to Rs 244283.44 lakhs. Out of balance 6 tenders (12 Divisions), 3
tenders (6 Division) re-floated under Infrastructure Plan Phase II and remaining 3 tenders (6
Divisions) re-floated under Infrastructure Plan Phase IIA. The 80% loan (Rs 159537.94 lakhs) of
principle cost (Rs 199422.42 lakhs) approved by MERC is issued by funding agencies. The
contribution of funding agencies such as PFC is (Rs 85325.5 lakhs), REC (Rs 66905.39 lakhs)
20
and RGB (Rs 7307.07 lakhs), so that total loan amounts to (Rs 159537.94 lakhs). Remaining
20% is equity of government of Maharashtra State on principle cost (Rs 199422.42 lakhs)
approved by MERC.
(Table No.3.1.1.1:- Cost analysis of Infrastructure Plan Phase I)
Sr. No Project cost approval Process (Rs in Lakhs)
1 Cost as per DPR submitted to MREC 269617.73
2 Cost approved in principle by MERC 199422.42
3 Value of Contract Awarded i.e. (LOA) 244283.44
4 Amount of loan sanctioned 159537.94
(Table No3.1.1.2:- List of Zones/Circles/Divisions covered in Infrastructure Plan Phase I)
Sr.
no.
Tender No. Zone Circle Division
1 1 Kolhapur Kolhapur Gadhinglaj,
Kolhapur (R-I)
2 3 Baramati Solapur Solapur(R),
Solapur (U)
3 6 Nashik Ahmednagar Sangamner
4 8 Aurangabad Aurangabad(R)
Jalna
Aurangabad(R),
Kannad, Jalna-II
5 10 Latur Osmanabad, Latur Osmanabad, Latur
6 12 Latur Latur Nilanga, Udgir
7 14 Kalyan Pen Panvel(R ), Goregaon
8 15 Pune (U) Ganeshkhind,
Rastapeth
Bhosari,Kothrud,
Bundgarden
9 16 Pune / Baramati Pune Rural /
Baramati
Baramati,Kedgaon,
Manchar
10 17 Nagpur,
Nagpur (U)
Gadchiroli,
Bhandara,
Bramhapuri,Sakoli,
Nagpur Division – II
21
Nagpur(R)
11 13 Nanded Nanded Bhokar ,Nanded
Total Divisions: 25
3.1.2 Infrastructure Plan Phase II
In Infrastructure Plan Phase II, 53 tenders (82 Divisions + 6 Divisions from Infrastructure
Plan Phase I) were taken with estimated project cost of Rs 6718.61 crores. From 53 tenders only
38 tenders (61 Divisions) were issued Letter of Award amounting Rs 581652.92 lakhs. Balance
15 tenders (27 Divisions) refloated under Infrastructure Plan Phase IIA. Loan of 80%
(Rs 364613.15 lakhs) of principle cost (Rs 455766.44 lakhs) approved by MERC is issued by
funding agencies. The contribution of funding agencies such as PFC is (Rs 245539.8 lakhs),
REC (Rs 115290.2 lakhs) and RGB (Rs 3783.17 lakhs), so that total loan amounts to
(Rs 364613.15 lakhs). Remaining 20% is equity of Government of Maharashtra state on
principle cost (Rs 455766.44 lakhs) approved by MERC.
(Table No.3.1.2.1:- Cost Analysis of Infrastructure Plan Phase II)
Sr. No Project cost approval Process (Rs in Lakhs)
1 Cost as per DPR submitted to MREC 507647.90
2 Cost approved in principle by MERC 455766.44
3 Value of Contract Awarded i.e. (LOA) 581652.92
4 Amount of loan sanctioned 364613.15
(Table No.3.1.2.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase II)
Sr.
No.
Tender No. Zone Circle Division
1 44 Konkan Ratnagiri Ratnagiri,Chiplun
2 45 Konkan Sindhudurg Kankavali, Kudal
3 60 Nashik Nashik Urban Nashik (U) – II
22
4 62 Nashik Nashik R Chandwad
5 63 Nashik Nashik R Malegaon Rural
6 64 Nashik Nashik R Nashik Rural
7 66 Nashik Nashik Urban Nashik (U) – I
8 26 Baramati Solapur Barshi *
9 27 Kolhapur Sangli Vita *
10 29 Amravati Amaravati Achalpur
11 30 Amravati Amaravati Amravati R, Amravati U
12 31 Amravati Amaravati Morshi
13 32 Amravati Buldhana Buldhana
14 33 Amravati Buldhana Khamgaon
15 34 Amravati Buldhana Malkapur
16 36 Nanded Jalna, Parbhani,
Hingoli
Jalna I, Hingoli, Parbhani
17 47 Nagpur Chandrapur Chandrapur, Ballarshah,
Warora
18 49 Nagpur Wardha Arvi, Hinganghat, Wardha
19 50 Nagpur (U) Nagpur (R) Katol, Nagpur Dn. I
20 51 Nagpur (U) Nagpur U Congress Nagar, MIDC
Nagpur
21 57 Jalgaon Jalgaon Chalisgaon
22 65 Jalgaon Dhule Shahada *
23 67 Pune Ganeshkhind Pimpri, Shivajinagar
24 68 Pune Pune (R) Mulshi, Rajgurunagar
25 24 Baramati Solapur Pandharpur *
26 35 Amravati Yavatmal Pandharkawda, Pusad,
Yavatmal
27 42 Kalyan Kalyan- I Kalyan –E, Dombivali
28 46 Nagpur Bhandara Bhandara, Gondia
29 52 Nashik Ahmednagar Karjat
23
30 54 Jalgaon Dhule Dondaicha
31 56 Jalgaon Jalgaon Bhusawal UCR, Jalgaon
UCR
32 58 Jalgaon Jalgaon Pachora, Savda
33 59 Jalgaon Jalgaon Dharangaon
34 61 Nashik Nashik R Malegaon UCR
35 69 Pune Rastapeth Nagar Road, Rastapeth
36 20 Kolhapur Kolhapur Kolhapur Urban, Kolhapur
Rural II
37 21 Kolhapur Kolhapur Jaysingpur, Ichalkaraji
38 28 Amravati Akola Akola Rural, Washim
* refloated tenders
Total Divisions: 61
3.1.3 Infrastructure Plan Phase IIA
In Infrastructure Plan Phase IIA, 33 tenders (27 Divisions from Infrastructure Plan Phase
II+ 6 Divisions from Infrastructure Plan Phase I+2 New Divisions) where taken with estimated
project cost of Rs 2565.66 crores. From 33 tenders only 27 tender (28 Divisions) where issued
Letter of Award amounting to Rs 225067.67 lakhs. Out balance 6 tenders (7 Divisions), 3 tenders
(3 Divisions) refloated under Infrastructure Plan Phase IV, and 2 tenders (3 Divisions) refloated
under Infrastructure Plan Phase V or Infrastructure Plan Phase VIC & balance 1 tender (1
Division) has been cancelled. Loan of 80% (Rs 176717.50 lakhs) of principle cost (Rs 220896
.89 lakhs) approved by MERC is issued by funding agencies. The contribution of funding
agencies such as PFC is (Rs 100258.50 lakhs), REC (Rs 76459.05 lakhs), so that total loan
amounts to (Rs 176717.50 lakhs). Remaining 20% is equity of Government of Maharashtra State
on principle cost (Rs 220896.89 lakhs) approved by MERC.
(Table No.3.1.3.1:-Infrastructure Plan Phase IIA)
Sr.No Project cost approval Process (Rs in Lakhs)
1 Cost as per DPR submitted to MREC 262415.72
24
2 Cost approved in principle by MERC 220896.89
5 Value of Contract Awarded i.e. (LOA) 225067.67
4 Amount of loan sanctioned 176717.50
(Table No.3.1.3.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase IIA)
Sr.
no.
Tender No. Zone Circle Division
1 81 Kalyan Vasai Palghar
2 82 Kalyan Vasai Vasai
3 84 Kolhapur Sangli Islampur
4 85 Kolhapur Sangli Sangli Urban
5 87 Baramati Satara Karad
6 88 Baramati Satara Phaltan
7 98 Nashik Ahmednagar Ahmednagar UCR
8 99 Jalgaon Dhule Dhule (R)
9 102 Pune Rastapeth Padmavati
10 86 Kolhapur Sangli Sangli (R)
11 91 Baramati Solapur Akluj
12 97 Nashik Ahmednagar Ahmednagar Rural
13 92 Latur Beed Ambejogai
14 93 Latur Beed Beed
15 89 Baramati Satara Satara
16 90 Baramati Satara Wai
17 94 Nanded Beed Degloor
18 95 Latur Osmanabad Tuljapur
19 77 Bhandup Vashi Panvel U
20 96 Nagpur Gadchiroli Allapali,Gadchiroli
21 76 Bhandup Vashi Nerul
22 75 Bhandup Thane (Urban) Wagle Estate
23 78 Bhandup Vashi Vashi
25
24 74 Bhandup Thane (Urban) Thane (Urban)
25 79 Kalyan Kalyan-II Kalyan-R
26 71 Amravati Akola Akola U
27 73 Bhandup Thane (Urban) Kalwa
Total Divisions: 28
3.1.4 Infrastructure Plan Phase IV
In Infrastructure Plan Phase IV, 3 tenders (3 Divisions) where taken with estimated
project cost of Rs 15976.02 lakhs with Letter of Award (Rs 14697 .94 lakhs) .The loan of 80%
(Rs 11739.36 lakhs) of principle cost (Rs 14674.20 lakhs) approved by MERC is issued by
funding agencies. The contribution of funding agencies such as PFC is (Rs 7134.08 lakhs), REC
(Rs 4605.27 lakhs), so that total loan amounts to (Rs 11739.36 lakhs). Remaining 20% is equity
of Government of Maharashtra state on principle cost (Rs 14674.20 lakhs) approved by MERC.
(Table No.3.1.4.1:-Infrastructure Plan Phase IV)
Sr.No Project cost approval Process (Rs in Lakhs)
1 Cost as per DPR submitted to MERC 16324.40
2 Cost approved in principle by MERC 14674.20
3 Value of Contract Awarded i.e. (LOA) 14697.94
4 Amount of loan sanctioned 11739.36
(Table No.3.1.4.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase IV)
Sr.
No.
Tender No. Zone Circle Division
1 110 Jalgaon Dhule Dhule UCR
2 111 Jalgaon Nandurbar Nandurbar
3 112 Pune Rastapeth Parvati
Total Divisions: 3
26
3.1.5 Infrastructure Plan Phase VIC
In Infrastructure Plan Phase VIC, 2 tenders (3 Divisions) where taken with estimated
project cost of Rs 87.32 crores. The loan of 80% (Rs 8508.50 lakhs) of principle cost
(Rs 10635.62 lakhs) approved by MERC is issued by funding agencies, so that total loan
amounts to (Rs 8508.50 lakhs) and remaining 20% is equity of Government of Maharashtra state
on principle cost (Rs 10635.62 lakhs) approved by MERC.
(Table No.3.1.5.1:- Infrastructure Plan Phase VIC)
Sr.
No.
Project cost approval Process (Rs in Lakhs)
1 Cost as per DPR submitted to MREC 11831.70
2 Cost approved in principle by MERC 10635.62
3 Value of Contract Awarded i.e. (LOA) 7420.85
4 Amount of loan sanctioned 8508.50
(Table No.3.1.5.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase VIC)
Sr. no. Tender No. Zone Circle Division
1 142 Kalyan Kalyan- II Ulhasnagar I
2 Kalyan Kalyan- II Ulhasnagar II
3 141 Kalyan Vasai Virar
Total Divisions: 3
4 143* Pune Ganeshkhind, Rastapeth Bhosari, Kothrud,
Bundgarden
*Refloated Balance works of Tender No. T-15
27
3.1.6 Infrastructure Plan Phase VID
Infrastructure Plan Phase VID consist of re-floated balance work of 2 tenders
(3 Divisions) with estimated project cost (Rs 9525.70 lakhs).The two tenders, tender no.3 and
tender no.32 are re-floated balance work of Infrastructure Plan Phase I and Infrastructure Plan
Phase II respectively. The loan of 80% (Rs 19761.00 lakhs) of principle cost (Rs 24701.25
lakhs) approved by MERC is issued by funding agencies, so that total loan amounts to
(Rs 19761.00 lakhs) and remaining 20% is equity of Government of Maharashtra State on
principle cost (Rs 24701.00 lakhs) approved by MERC.
(Table No.3.1.6.1:- Infrastructure Plan Phase VID)
Sr. No. Project cost approval Process (Rs in Lakhs)
1 Cost as per DPR submitted to MREC 36926.28
2 Cost approved in principle by MERC 24701.25
3 Value of Contract Awarded i.e. (LOA) 10243.74
4 Amount of loan sanctioned 19761.00
(Table No.3.1.6.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase VID)
Sr. no. Tender
No.
Zone Circle Division
1 145* Baramati Solapur Solapur R & U
2 146** Amravati Buldhana Buldhana
Total Divisions: 3
*Refloated Balance works of Tender No. T-3
**Refloated Balance works of Tender No. T-32
28
3.1.7 Infrastructure Plan Phase IIB
Infrastructure plan Phase IIB consists of the Turnkey Contract for Supply, errection &
Commissioning of Station Mounted Capacitor Banks in Maharashtra State with estimate project
cost (Rs 6266.00 lakhs) against which Letter of Award of Rs 4574.00 lakhs is issued.
3.2 Process Flow of Infrastructure Plan Projects
3.2.1 DPR Submission and Approval Process
In order to facilitate the work of distribution, MSEDCL have divided geographic territory
of Maharashtra State approximately into, (1045) Sections, (608) Subdivisions, (131) Divisions,
(42) Circles and (14) Zones. The formation of numbers of (Sections, Subdivisions, Divisions,
Circles and Zones) depends upon the consumer norms given in Annexure I.
(Figure 1:- DPR Submission and Approval Process)
(1)The Detail Project Report (DPR) or Project Proposal is prepared by the Assistant Engineer or
Deputy Executive Engineer at Subdivision Office and it is submitted to Division Office.
(2) Scrutiny of DPR is done by the Assistant Engineer. It is audited by the Accountant at
Division office. The DPR is then recommended by Executive Engineer (Operation and
Maintenance). If there is any query it is resolved by concerned authorities at Division Office
Subdivision Office Division Office Circles Office
Zone Office
Head Office
Query Query
Query
Query
29
respectively or sent back to Subdivision office for recheck. The corrected DPR is then submitted
to the Circle Office along with the covering letter.
(3) At Circle Office the scrutiny of DPR is done by the Assistant Engineer .After scrutiny of
DPR, it is audited by Deputy Manager (Finance & Administration). The DPR is then submitted
to Executive Engineer (Administration) for his approval. If there is any query it is resolved by
concerned authorities in hierarchy of Circle Office respectively or it send back to the Division
Office for correction. After recommendation from Circle Office DPR is submitted to the Zonal
Office.
(4) At Zonal Office DPR is verified by Assistant Engineer (Infra Plan), Deputy Executive
Engineer (Infra Plan) and Executive Engineer (Infra Plan). The DPR is then recommended by
Chief Engineer to Head Office. If there is any query it is resolved by concerned authority in
hierarchy of Zone Office respectively or it is send back to the Circle Office for correction.
(5) At the Head office the scrutiny of DPR is done by Deputy Executive Engineer (Infra Plan) or
Assistant Engineer (Infra Plan). After scrutiny DPR is submitted for approval to the Executive
Engineer (Infra Plan), Superintendent Engineer (Infra Plan) and Chief Engineer (Infra Plan).The
consolidated DPR is then submitted to competent authority like Executive Director (Projects)
and Director (Projects). If there is any query it is resolved by concerned authority in hierarchy of
Head Office respectively or it is sent back to the Zonal Office for correction.
3.2.2 Financial Institutes
1) If the estimated cost of DPR is less than 10 crores then Chief Engineer (Infra Plan) submits
the DPR to concerned Zonal Office for floating the tender.
2) If the estimated cost of DPR is more than 10 crores then the DPR is sent for approval in board
meeting.
30
3) Once the estimated cost of DPR gets approval in board meeting, the DPR is submitted to
MERC for its approval. MERC carry out scrutiny of DPR and gives its approval. The 80% of
approved project cost is taken from Financial Institutions (Funding Agencies) as loan and 20% of
Project cost is equity of Government of Maharashtra.
4) After above administrative approval, proposals or schemes are sent to Financial Institutions
PFC or REC or Raigad Bank for the 80% loan on total cost of project approved by MERC.
5) Each Financial Institution has its own terms and condition for granting loan. If there is any
query, concerned authorities of Infra Plan at Head Office are contacted for clarification. If there
is no query, proposal is accepted by the Funding Agency managers and experts. The interest on
loan is paid back at agreed rate (rate of interest on loan is different for different Financial
Institutions and may change as specified in terms and conditions of loan document) and paid
back in fixed time-period (time-period for loan payback is different for different Financial
Institutions and may change as specified in terms and conditions of loan document).
31
E-Tendering Floating
by concerned CE
(Infra Plan)
EE (Civil) for
availability of
land
Application to MERC for approval
Request to GoM
for 20% Equity
Application to Financial Institutes for 80% loan
CE (Infra Plan) Head Office Submitting DPR/
Scheme to Financial Institute.
Board Meeting
Any Queries?
Receipt of Funding Agency Manager
Concerned Funding Agency Expert
Scrutiny of DPR/Scheme -Techno economical
scrutiny
Funding Agency Manager
Concerned CE-Head Office Arrangement with
Financial Institutes
E-Tendering
DPR up to
10 (crores)
(Figure No. 2:-Flow chart of the Financial Institute Process)
YES
NO
YES
NO
Is draft approved? NO
YES
32
3.2.3 E-Tendering Registration Process
MSEDCL has implemented Electronic Tendering system. This caters to the tender related
to works, projects & infrastructure. For participation in the Tenders to be called by MSEDCL,
online contractor registration is mandatory. Currently this system is being made operational with
regard to purchases, works, projects and infrastructure tenders floated by MSEDCL. The
E-Tendering process steps with flow chart are discussed below.
(Figure No.3:-Flow chart of the E-Tendering Registration Process)
New Contractor/Bidder Opens Home Page of MSEDCL E-Tendering
Submission of Certificates & Document Verification
New Contractor /Bidders Submit Registration fee
Approval of location by Account Officers
Approval of location by RA Officer after original verification
Approval of RA and CA Officers
TCS system generated email is sent to the new Contractor containing Authentication Pin.
Creating certificate enrollment request with letter of authority duly signed by new contractor
Issuing of token (Dongle) & CD to new contractor
Start downloading digital signature certificates
33
(1) To get registered as new contractor, the contractor has to register himself with the
E-Tendering website of MSEDCL (http://works.mahadiscom.in/eTender/etender)by filling all
required fields online with registration fee of Rs.2000.00 (pay mode: on-line pay, DD or Cash).
After completion of one year from date of registration, the contractor will have to renew the
registration. Registration renewal fees will be Rs.1000/- per year (Non-refundable). The
Contractor Registration Charges and the renewal fee indicated above may undergo change
without prior notice and Contractors are required to pay the same as applicable at the time of
registration.
(2) This registration can be done at Zone /Circle or Division Level. Contractor can select any
convenient location for completing registration process .The Contractor has to submit the
certificate request form which is available on home page portal of E-tendering website of
MSEDCL under the header “If you are a Contractor” by enclosing following documents in two
sets duly attested/ notarized and originals for verification along with covering letter of company
letter head. Documents required for verification:
Company Registration Certificate/Partnership Deed/Shop Act/Latest Balance Sheet
depending upon the Company Type.
Sales Tax & Central Sales Tax Certificate
Company PAN. In case of Proprietor, Digital Certificate Holders PAN.
Electrical License for Electrical Category.
Power of Attorney/ Board Resolution in the Name of Digital Certificate Holder.
Identification Passport / Driving License in the Name of Digital Certificate Holder as
address proof.
(3) The contractor has to get this amount approved from the respective location Account
Officer in charge.
(4) After verifying the documents, the contractors status will be made active by the respective
location RA Officer and the contractor will be provided with token (Dongle) and CD.
34
(5) The contractor has to install the software from the CD provided for the first time. Once the
driver is installed, the contractor can insert the token into a USB drive and has to create his token
password which is also one time password creation.
(6) Then the contractor should follow the steps mentioned below.
a) Login with the User ID and Password created by contractor at the time of online
registration.
b) Click the “Profile” tab
c) Click on “Manage Certificate” tab
d) Click on “Enroll”
e) Select Cryptograph Service Provider for his Token Type
f) Window will appear requesting the Token password.
g) Click on “Generate Request” tab
(7) After that Certificate Enrollment Request form with letter of authority is displayed on the
next window, the contractor will be taking the Print copy of Certificate Enrollment Request
form.
(8) The contractor has to sign the Letter of Authority and submit the Certificate Enrollment
Request form with letter of authority to the respective location RA Officer.
(9) After getting the approval from the respective location RA and CA Officer, email is sent to
contractor which is TCS system generated with an authentication PIN.
(10) Then the contractor has to go through following with steps mentioned below
a) Login with the User ID and Password created by contractor at the time of on- line
registration.
b) Click the “Profile” tab
c) Click on “Manage Certificate” tab
35
i) Click on “Download Digital Certificate” tab
j) Requested Certificate Enrollment Number window will be displayed.
k) Click the Requested Certificate Enrollment Number
l) Enter the authentication PIN received on your mail. Download the digital Signature
certificate in token.
3.2.4 Tendering Process
For convenience and efficiency, works are grouped into tenders on a division-wise basis.
Bidders may bid for one or more than one of the contracts (tenders), as further defined in the
bidding documents, and shall submit separate price bids for each contract. However a bidder is
not permitted to submit price bids against more than 10 (Ten) tenders. As regards Technical Bid,
the bidder shall submit only one bid which will be common for all tenders quoted for. Bidders
wishing to offer discounts in case they are awarded more than one contract will be allowed to do
so, provided that those discounts are included in the form of Price Bid or submitted in writing
before the deadline for submission. All bids and offers of discounts shall be opened and
evaluated simultaneously so as to determine the bid or combination of bids, including discounts,
which offers the lowest evaluated cost to the employer.
(1) After approval of the DPR through competent authority and making availability of fund by
MERC for DPR, the bids documents are prepared for the respective DPR and are floated/
published through E-Tendering process which then termed as “Tender”.
(2) The MSEDCL users (users are up to sub-division level) are logged into E-Tendering portal.
Once logged in, the MSEDCL user creates the first version of the “TENDER” with punching all
the relevant field pertaining to that “TENDER” such as “TENDER” name, code, type
(CAPEX/REVENUE), brief note, estimated tender cost, EMD, tender fee, sale opening date, sale
closing date, Pre-bid meeting date, last date for submission, technical opening date, commercial
opening date, office address for correspondence etc. After punching all above data, the MSEDCL
user uploads the Bid documents and then publishes the above “TENDER” in local Newspaper
and on company website.
36
(3) The MSEDCL user also has to form the committee for the “TENDER” which includes the
Chairman (MSEDCL user) and Accountant. Forming the Committee means – The “TENDER” is
opened by Accountant first (only his presence in terms of joining the Chairman (MSEDCL user)
& then the Chairman (MSEDCL user) joins and opens the Bids (Technical /Commercial).
(4) Once the tender is floated on-line, the interested contractors (Registered Contractors or New
Contractors) approach to concerned office / department. The New Contractors are requested to
get registered. Then the registered contractor should purchase the floated tender by cash or
online. The payment receipt is then verified by concerned accounts department from where the
tender is floated and on verification the bidder is authorized to view the particular tender for
which payment has been made. The tender fee excluding tax is below.
(Table No.3.2.4.1:- Tender fee excluding tax)
(5) The bidder is advised to visit the site and study the bid document thoroughly, and is requested
to submit any questions in writing or by fax, to reach the employer not later than one week
before the pre-bid meeting. The queries at the contractor end are solved by the MSEDCL user
and Higher Authority on the Pre-bid meeting date mentioned while floating the “TENDER”.
Once the Queries are clarified by MSEDCL user, the MSEDCL user uploads the modified
documents and also makes time extensions, if required on the E-Tender Portal with
ADDENDUMS on the Company website. The contractor starts bidding “TENDER” till last date
of submission. Once the last date and time gets lapsed, then the MSEDCL user opens the
Sr. No Tender Value (Rs in Lakhs) Tender Fee (Rs)
A Less than 5 500
B 5 and above & less than 20 1000
C 20 and above & less than 50 2500
D 50 and above & less than 500 5000
E 500 and above & less than 1000 10000
F 1000 and above 25000
37
technical Bid Documents after joining by the Accountant user with prior permission of the
Competent Authority.
Verification by Account Department, Contractor authorized to down load the TENDER document.
Formation of Tender Committee
Tender is purchased by interested contractor by cash /D.D/ online payments
MSEDCL user login, Create first version of Tender & Published in paper & MSEDCL portal
Preparation of bid document for respective DPR
Is Queries raised by
contractor?
Modified version of Tender published with extension of date if any
Queries clarified from MSEDCL end.
Contractor start bidding
Is submission date and
time elapsed?
Technical evaluation report Broad approval for opening of bid
Technical bids opening
A
NO
NO
YES
YES
38
(Figure No.4:-Flow chart of the Tendering Process)
(6) The MSEDCL user will open the technical proposals in the presence of bidders’
representatives who choose to attend at the address, date and time designated in the Bidding data.
After downloading the technical bids submitted by the contractors, the MSEDCL user starts
evaluating manually by taking the print of downloaded documents. In evaluation process the
evaluator checks the substantially responsive bid. A substantially responsive bid is one which
conforms to all the terms, conditions and specifications of the bidding documents, without
material deviation or reservations .The evaluation report is then sent to audit for verification. The
price proposals/commercial bids will remain unopened and will be held in the custody of the
MSEDCL user until the time of opening of the price proposals.
(7) The MSEDCL user with Board approval will open the price proposals/commercial bids of all
bidders who submitted responsive technical proposals at the time and date at the location advised
to the bidders. Price proposals shall be opened at the date and time indicated in the bidding data,
or at such other time as may be notified to the responsive bidders. The MSEDCL user then starts
downloading the commercial bids submitted by contractors and starts evaluating manually by
taking the print of downloaded documents. The evaluation report is sent to audit for verification
.The bidders’ names, the bid prices, the total amount of each bid, any discounts, and such other
Is Technically
Qualified?
Opening of price bid
Letter of Award issued to successful bidder
Board approval
No Opening of price bid
A
NO
YES
39
details as the employer may consider appropriate, will be announced and recorded by the
employer at the opening.
(8) Prior to expiry of the period of bid validity prescribed by the MSEDCL user, the MSEDCL
user will notify the successful bidder with board approval by fax, confirmed by registered letter,
or through E-tendering website that his bid has been accepted. This letter is called the Letter of
Award (LOA). Once the LOA is issued, MSEDCL user makes contractors status as awarded on
e-tender portal. The letter of award shall name the sum which the employer will pay the
contractor in consideration of the execution, completion and guarantee of the works by the
contractor as prescribed by the contract. The MSEDCL user will send the bidder the form of
contract agreement provided in the bidding documents, incorporating all agreements between the
parties.
3.2.5 Milestone Chart Preparation
Milestone means the time as stated in the Appendix to Tender for completing &
commissioning of complete sections or for completing a designated percentage of the total value
of the works, calculated from the commencement date. The flow chart of the Mile Stone
Preparation chart is discussed below.
(Figure No.5:-Flow chart of the Milestone Preparation Chart Process)
LOA Issued to Successful Bidder (L-1)
Preparation of Mile Stone Chart
Mile Stone Can be Changed In Case of Variation
New Milestone Chart
40
1) After the issue of Letter of Award to the successful bidder the successful bidder refers
indicative Milestone Chart in the Appendix to Tender provided by the Employer. It broadly
describes the monthly progress targets that the contractor is expected to achieve in order to
maintain the pro-rata progress that will be necessary to ensure successful completion of the
whole of the works within the scheduled time for completion.
2) The contractor shall develop his detailed construction programme in consultation with the
employer’s representative so as to clearly describe the milestones that are to be achieved during
each quarter of the construction period. The Milestones, as agreed and approved by the
employer’s representative, will form the basis for assessing the contractor’s progress during the
construction period. The employer’s representative will undertake comprehensive reviews of the
contractor’s progress every month, measured from the commencement date to determine if the
contractor has carried out the work in conformity with the approved construction programme and
agreed Milestones.
3) The employer’s representative shall scrutinize, modify if required and approve such proposed
construction program, in consultation with the contractor. The employer reserves the right to
request a change in the priority schedule for the activities as given by the contractor based on
mutual agreement
3.2.6 Material Inspection Process
Materials means things of all kinds (other than Plant) to be provided and incorporated in
the permanent works by the contractor, including the supply-only items (if any) which are to be
supplied by the contractor as specified in the contract.
41
(Figure No.6:-Flow chart of the Material Inspection Process)
Material requirement as per Milestone
Vendor
Factory Inspection
Material arrived at site store
of turnkey contractor
Nomination Letter as per Inspection
Scheduled
Inspection authorization request email
from contractor to concerned SE (Infra) /
Dir-P/Ed-P/ CE (Infra)
Inspection authorization request email
from contractor to concerned SE (Infra)
Nomination to concerned person
Inspection Call submitted
from vendor to contractor
Vendor location outside Maharashtra
including Mumbai Region
Vendor Location with in Maharashtra
Project Execution
Monitoring & Controlling
Material Dispatch
Report Submission
Approval
Is material as per
MSEDCL?
NO
Yes
A
A
Invoice from Contractor
42
1) The material requirement as per the Mile Stone is prepared. The contractor shall guarantee
that all plant, equipment and materials will be new and free from defects in materials and
workmanship and suited for its normal operating conditions. It is expected that the Bidder shall
quote for supply of equipment of best makes which confirm to the highest national and
international standards. All plant and equipment supplied for sub-stations shall be designed so
that the completed facilities will be compatible with future SCADA operating systems,
irrespective of whether such requirement is specifically included in the employer’s specifications
or not.
2) Plant and materials supplied from within India shall be procured only from vendors, fulfilling
the criteria for approval of vendors as provided in Section 9 of Vol. III Price variation formulae
[6] and criteria for approval of vendors of Bidding Documents. Annual turnover of the vendors
during any one of the last three years shall satisfy the minimum criteria fixed as below for supply
of different types of material.
(Table No.3.2.6.1:- Minimum Turn Over of Vendors)
3) The inspection call is raised from vendor or contractor for the inspection of the material is
made to employer. If vendor location is inside Maharashtra, inspection authorization request
from contractor is made to employer. The nomination of concerned person as employer
representative [Superintending Engineer (Infra Plan)] near to vendor site for inspection is made.
Local Superintending Engineer (Infra Plan) will inspect the material under his jurisdiction or will
forward this call to the Superintending Engineer (Infra Plan) under whose jurisdiction the
Sr. No Item proposed to be supplied by vendor Minimum Annual Turn Over ( Rs. Crores)
1 Power Transformer 25
2 Distribution Transformer 25
3 33 kV /22 /11kV,Vaccum Circuit Breaker 50
4 HT XLPE power cable 40
5 Capacitors for station type and pole
mounted type HT capacitor banks
5
6 LT XLPE cables 20
43
material is to be inspected. Once the inspection is finished, the inspection report will be sent to
concerned local Superintending Engineer (Infra Plan) and Chief Engineer (Infra).The factory
inspection is done by employer’s representative and material as per MSEDCL specification is
checked and reported. If the material is as per MSEDCL specification approval is given.
Dispatched material arrived at site is stored at contractor’s store. Billing and invoice is made for
material. The inspection is also carried out by third party.
4) For the vendor location is outside Maharashtra including Mumbai. The inspection call is
raised by the vendor/contractor to the office of the Director (Projects) or Chief Engineer (Infra
Plan).An inspection scheduled is prepared every month on approval from the Executive Director
(Projects).The office of the Director (Projects) deputes the employer representative for inspection
outside Maharashtra (including Mumbai Region) as per the inspection scheduled. The concerned
officer will inspect materials and submit the inspection report to concerned Superintending
Engineer (Infra Plan) with a copy to the office of Director (Projects) or Executive Director
(Projects) or Chief Engineer (Infra Plan). The factory inspection is done by employer’s
representative (Superintendent Engineer of Infra Plan near to vendor site) and material as per
MSEDCL specification is checked and reported. If the material is as per MSEDCL specification
approval is given. Dispatched material arrived at site is stored at contractor’s store. Billing and
invoice is made for material. The inspection is also carried out by third party.
3.2.7 Billing Process
The payment is made to the contractor by 70% payment, 20% payment and 10% payment.
1) Once major activities are completed contractor is eligible to receive 70% payment of the
contract amount against Work Completion Certificate (WCC). He is required to obtain certified
WCC from concerned JE (Infra Plan) at Division Office.
2) On the basis of certified WCC, running account bills should be prepared by contractor and
submitted to JE (Infra Plan) of Division Office for verification and forward the same to SE (Infra
Plan) Zonal Office.
44
70% Payments
Concerned JE (Infra Plan)
Zonal SE (Infra Plan) with
final Measurement Recording
JE (Infra Plan) at Head Office
SE (Infra Plan) at Head Office
CE (Infra Plan) at Head Office
ED projects approval for RA
Payment from
Internal Sources
PFC Verifies RA Bills
Loan Sanctions
RA bill lodgment by bank to
PFC
PFC empanelled bankers
through contractor
If REC/PFC/
RGB
Is loan balance?
Payment gets credit to
directly contractor
bank a/c
ED projects approval
for RA bills
CGM (CF)/WM
Section
Concerned Circle
Office
Releasing check to
contractor
Project completion
& Handling over.
Project Report Releases payment
advice to debt PFC a/c
and credit concerned
contractor bank a/c
REC Verifies RA
Bills
(Figure No.7:-Flow chart of 70% Bill Payment Process)
NO
YES
45
3) On receipt of the said bills from JE (Infra Plan) Division Office, SE (Zone Office) verifies
bills and if found okay the same is forwarded to CE (Infra Plan) Head Office for further
processing and payment.
4) At Head Office: JE (Infra Plan) of respective tenders verifies Running Account (RA) bills
submitted and forwards to EE(Infra Plan) along with invoice Statement, Progress Report. Then
EE (Infra Plan) forwards the same to SE (Infra Plan) for further approvals. Once approved by SE
(Infra Plan), RA bills with two copies i.e. (1 Original and 2 Copies) are approved by CE (Infra
Plan) and ED (Projects) for further processing at loan section.
5) Before processing further at loan section the availability of loan with financing agency is
checked. If the loan availability is conformed, RA bills are sent to ED (Projects) for approval.
After ED’s (Projects) approval running account bills are sent to the loan section.
6) Loan Section forwards/Hand over RA bills duly stamped with Form I (Form I is the form of
PFC) and covering letter to PFC empanelled bankers through contractor. RA bills are required to
be submitted at PFC Delhi by bankers. Bank charges for processing this vary from bank to bank.
The bank charges are borne by the contractor and no compensation is provided.
7) The RA bills lodged by bank to PFC, PFC verifies RA bills and if found okay and in order
then releases payment advice to bank and advises to Debit PFC Account and Credit to concerned
contractor bank account.
8) In case loan section sents RA bills to REC all above processes are the same except RA bills
submission by bank at PFC Delhi. Loan section themselves submit RA bills funded by REC at
REC Office Mumbai. REC Office Mumbai processes in their ERP at Mumbai and technical team
forwards same to their Delhi office (REC BANKING & FINANCE Department located at Delhi)
and amount gets credited directly to the contractor bank account.
46
9) If there is no availability of loan with financing agency then 70% payment is made by
company itself. The RA bills are sent to ED (Projects) for approval and after approval by ED
(Projects) it is sent to the CGM (Corporate Finance) or WM section from where the fund is
transferred to concerned circle office. The cheque is released to contractor.
20% payment
1) On completion of work and due for hand over and take over, joint measurement is carried
(JMC) out and once found okay same is jointly signed by contractor representative and employer
representative.
2) On payment of electrical inspector fee, electrical inspection takes place. After that Hand over
Take over (HOTO) is signed by both parties.
3) Once JMC and HOTO is received ,RA bills for 20%/15%/10% is prepared and presented to JE
(Infra Plan) Division who forwards the same bills after due verification to Division where AE/EE
do verify the same and forwards RA bills to SE (Infra Plan) Zone Office for further verification.
4) On receipt of RA Bills the same is verified by JE/EE/Dy EE and if found okay then the same
is countersigned by SE (Infra Plan) with forwarding letter and the same is submitted to SE
(O&M) Zone Office for further verification.
5) SE (O&M) Zonal Office verifies papers submitted along with RA bills for test reports,
HOTO,JMC and other details if technically found okay the same is handed over to finance and
audit section where rate verification is carried out and if found okay then Docket Voucher is
prepared and signed by Divisional Accountant.
(6) Once everything is okay SE (O&M) Zone Office, forwards the same RA bills to CE (Infra
Plan) Head Office with copies of Docket Voucher and copy of RA bills.
47
(7) At Head Office JE (Infra Plan) verifies RA bills and all documents and if found okay
prepares office note and submits it to EE/SE/CE/ED for approval.
(8) Approved office note with bill copies and Docket Voucher is forwarded to CGM (Internal
Audit) for audit if found okay the same is approved and then submits to Director Finance.
(9) Finally approved office note is submitted to CGM (Corporate Finance) or WM Section for
fund transfer to concerned circle office. Once fund is received at Circle Office cheques are issued
to contractor. C-forms issued to the contractor on request require Material Resource Handling
Over (MRHO) & Entry in Purchase Register.
10) Against the 20% payment only 15% or 10% payment is made and remaining 5% or 10% is
retained for quantity variation/ price variation/liquidity damages/interim penalty etc. This 5% or
10% payment is made after final audit.
10% retention payment
1) Contractor submits work completion report to the Subdivision Office for verification. The
report is forwarded to EE (O&M) Division Office, SE (O&M) Zone Office, and SE (Infra Plan)
Zone Office for verification and approval.JE (Infra Plan) Head Office verify all documents and
forward office note to EE (Infra Plan) Head Office and EE (Infra Plan) submit the same to SE
(Infra Plan) Head Office for approval of office note. Then the report goes to CE (Infra Plan)
Head Office, ED Projects, CGM (Internal Audit), Director Finance for their approval.
2) Before processing further at loan section the availability of loan with financing agency is
checked. If the loan availability is confirmed RA bills are sent for ED (Projects) approval. After
ED (Projects) approval RA bills are sent to the loan section.
3) Loan section forwards/hand over bills duly stamped with covering letter financing agencies.
The further process is same as given in (6), (7), (8) of 70% payment.
48
4) If there is no availability of loan with financing agency then 10% payment is made by
company itself. The bills are sent to ED (Project) approval and after approval by ED (Projects) it
is sent to the CGM (Corporate Finance) or WM section from where the fund is transferred to
concerned circle office. The cheque is released to contractor.
3.2.8 Project Completion and Handling Over Taking Over
Following certificates are issued during project completion & handling over taking over
process.
1) Taking Over certificate
2) Guarantee service
3) Performance Certificate
4) Final project completion certificate
1) Taking-Over Certificate means a certificate issued by engineer when the works, have been
completed in accordance with the contract.
2) Guarantee Service means the supply of all things necessary so as to remedy any defects in
workmanship, materials, plant & equipment and guarantee proper operation of the constructed
facilities for the period of time as specified in the Appendix to Tender after completion of the
works, all in accordance with the conditions of the contract.
3) Performance Certificate means the certificate issued by the Employer's Representative after
satisfactory completion of the works, including Guarantee Tests and Commissioning, and
satisfactory correction of all defects.
4) Final Contract Completion Certificate means the certificate issued by the Employer’s
Representative upon satisfactory completion of the Guarantee responsibilities
49
3.2.9 Third Party Quality Inspection of Work (Sample Basis)
The employer will engage, at his own cost, Third Party Inspectors or Third Party
Inspection Agencies to act as the Employer’s Representative for the purposes of quality
assurance and quality control testing of the Plant, Equipment and Materials to be supplied by the
contractor, and shall notify the contractor accordingly. The third party inspector or agency, as
appropriate, will be authorized to carry out inspections and acceptance tests on behalf of the
employer at all important stages of the works, including:-
(i) Inspection at the Manufacturer’s premises;
(ii) Inspection at the site and during execution of the project works
(iii) Inspection after erection and commissioning of the Plant, Equipment and Materials.
50
CHAPTER -4
IMPLICATION STRATEGIES & COST BENEFIT ANALYSIS OF INFRASTRUCTURE
PLAN PROJECT
4.1 Implication strategy of Infrastructure Plan Project
4.1.1 Design Methodology
a) Preamble
The infrastructure inherited by MSEDCL from erstwhile MSEB is quite old, deteriorated
and overloaded resulting in serious issues in terms of safety and reliability of power supply to
consumers. Further, under USO it is mandatory for MSEDCL to cater to all future load growth.
It has therefore become necessary to strengthen the existing system and increase its efficiency by
replacing old / obsolete assets. Simultaneously, to cater to the new loads, new infrastructure
needs to be created to match the load growth.
The aspect of technical and commercial loss reduction has also been taken into
consideration while upgrading the network and metering systems. A 3-year capital investment
plan has been prepared for each business unit (Division), looking to the specific requirements of
the area. The plan is focused on least cost options based as “Run – Repair – Replace” decisions
which ultimately result in reasonable cost – benefit analysis.
(b)Load Forecasting
Load forecasting is an essential part of overall development plans for electric supply
utilities. With the increase of general income, the per capita consumption of electricity increases.
The main purpose of load forecasting is to test the existing systems to determine weak elements
which will require any augmentation before the load growth actually occurs. Care has been taken
during the forecasting not to overestimate the future demands to avoid making unnecessary
capital expenditures on works that will not provide benefits to MSEDCL’s consumers.
51
(c)Time Horizon
The electricity distribution system is typically divided into the following categories:
Primary and secondary distribution system.
Primary and secondary sub transmission System.
Transmission system.
In the existing system, MSEDCL has jurisdiction over the distribution sector only.
Accordingly, short term planning for upgrading and improvement of the distribution network is
preferred to minimize the investment requirements and optimize the return on investment (ROI).
Since a short lead time is required for using this method, the load forecast is based on the actual
load registered and proposed for the immediate future to ensure rapid utilization of the benefits
of the investments. The total load growth up to the horizon year has been studied and only that
work which is required to meet the forecast needs has been considered in the instant proposal.
The base year for this project has therefore been taken.
While designing the time horizon, proposed changes in the EHV network for the area related
to this proposal have been considered. Thus the proposal has taken care of the availability and
shortcomings of the “EHV infrastructure” in the division.
(d) Design Criteria
While applying the design criteria the following voltage regulation limits have been taken
into consideration, as per provisions under Indian Electricity Rules.
1. For Voltage up to 1100 Volts +/- 6%
2. For Voltage above 440 V up to 33 KV -9 to +6%
3. above 33 KV -12.5% to +10
52
These provisions are also mandatory in view of the MERC regulations-2005 and the
standard of performance to be observed by the company.
(i) Removing Bottlenecks on Feeder Systems
Overloading of feeders must be removed to facilitate a reliable electric power conforming
to the SOP. The additional infrastructure is planned to achieve optimum loading on the feeders,
especially where the feeders are already overloaded or where the projected load growth will
result in overloading. Particular care has been taken to improve the voltage profile on the feeders
to regulate the voltage level to the acceptable limits as prescribed in the SOP.
In order to minimize the system losses in bare overhead conductors, the optimal sizing
will be as detailed in the following table:
(Table 4.1.1.d.i.1:- Table of Conductor Size and Maximum Loading)
(ii) Power Transformer Loading
While evaluating the Power Transformer requirements care has been taken to ensure that
the Power Transformer loading is brought to 50-80% of its rated capacity to prevent overloading
and enhance the system security. Furthermore, based on its operating experience, MSEDCL has
determined that 5 MVA transformers are better quality and more reliable than smaller capacity
transformers, and has accordingly standardized the minimum size of Power Transformers at 5
MVA to improve the supply quality. In cases where augmentation and addition of transformers
Conductor Size Max. Loading ( in Amps )
34 sqmm 150
50 sqmm 200
80 sqmm 250
100 sqmm 300
53
in the existing substations results in the capacity reaching 10 MVA in urban areas or 10 MVA in
rural areas, new substations have been proposed.
Although standardizing the size of the power transformers at 5 MVA will result in
comparative under loading of some Power Transformers in the divisions during the short term, it
will also cater to the projected medium and long term demand growth.
(iii) Distribution Transformer Loading
Distribution transformers are vital components in the distribution system with reference
to the quality of supply. Distribution transformer failure rates are at a very high and alarming rate
in many of the Zones. The field data analysis suggests that the major attribute to this is ageing
and overloading of the transformers. Notwithstanding the fact that electric faults occurring in the
low tension network is also a cause for failure of the distribution transformers, it is difficult to
precisely analyze and quantify what proportion of the failures are attributable to this factor.
While designing for augmentation of the infrastructure under this instant plan care has been
taken to minimize distribution transformer overloading and to maintain the loading in the range
of 50-80%. For tail end transformers which will not contribute to load sharing in case of failure,
loading of up to 120% of the rated capacity has been allowed.
(iv) Ensuring Supply Security
In order to maintain supply security, alternate feeding arrangements have been
strengthened. Care has been taken to restrict the load on each DTC to the extent of 80% of its
rated capacity where there is a practice of sharing the load with other transformers in the vicinity
in case of transformer failure.
54
(v) Loss Reduction Measures
Loss reduction measures are proposed to be implemented in the following sequence:
1. Power Factor Correction:
The present average power factor in the existing system is 0.90. By adding reactive
compensation of suitable in the system, a power factor close to 0.95 will be achieved.
2. Reducing Load on Primary Conductors
Due to bifurcation of load on the 11 KV feeders, the load on the existing primary
conductors will be reduced. Further, due to establishment of switching stations the load can be
switched from one feeder to another feeder if required, thereby improving the system reliability.
Based on the forecast of the maximum load on the feeders, the optimal size of the
conductors and cables has been decided. Similar treatment has been given while deciding current
transformer ratios at substations.
3. DTC Failure Rate
Owing to the high DTC failure rates in the various divisions, a detailed analysis has been
carried out by the divisional field engineers. It is observed that aging, overloading and service
condition are the main causes of the high failure rates. Accordingly, replacement of aged DTCs
will be undertaken to replace the critically aged transformers, which will result in a reduction in
the failure rate. Furthermore, the existing DTCs will be augmented which will result in a
reduction in the loads on the transformers and further reduce the DTC failure rate. The
benchmark has been set considering these factors and the prevailing failure rate in the division.
4. HT: LT Ratio
The existing HT: LT ratio will be improved from 1:1.70 to 1:1.50 by converting selected
high loss LT lines to HT lines and extending the HT network.
55
4.1.2 Implementation and Monitoring
Implementation Mechanism
As the instant project has been designed to address the immediate and short-term load
demands it is apparent that the project will require a short lead time. Further monitoring of the
project and all related activities needs to be done at the micro level during the tendering and
construction stages to ensure timely implementation and early delivery of benefits. Though the
planning work has been done based on subdivision-wise requirements, the scheme has been
designed based on Divisional feeder-wise planning for reduction of losses.
Since start of the project has already been delayed to some extent, the following major activities
have been identified for effective project plan implementation:
Administrative approval for the project proposals: 14 days
Approval of DPRs by MERC: 21 days (Concurrent with administrative approval)
Financial clearance from Lending Institution: 21 days (Concurrent with administrative
approval)
Preparation of detailed estimates for the works: 21 days (Concurrent with administrative
approval)
Publication, finalization of tender and award of Contract for “Turn-key” works: 75 days
Successful Bidders initial lead-time for arranging resources: 21 days
Start of Works simultaneously at all sites: 15 days from completion of lead time
End of all project related works: different for different projects
Monitoring Mechanism
The successful bidder will submit his work plan for each subdivision along with activity
schedule duly fixed in consultation with company officers and the Project Management
Consultant (PMC) (Employer’s Representative). This will be done within 14 days from signing
of contract document.
56
Each PMC will have overall responsibility for ensuring effective and timely completion
of the construction contracts, including contract administration, quality control, cost control,
dispute minimization/ resolution, and monitoring and reporting. A Junior Engineer at each
section office will be responsible for supervision and monitoring of the works. He will discharge
the duties of monitoring the project on time and quality parameters.
Subdivision officer will have overall responsibility for ensuring the project works under
his subdivision in a predefined manner with the help of the PMCs. Weekly management
meetings will be fixed at division offices to sort out and fix the issues and to monitor the
progress compared to the agreed milestones.
57
4.2 Case study of Ballarshah Division
4.2.1 Introduction of Ballarshah Division
This division covers the sixes Taluqa of Chandrapur district. There are 6 O&M
Subdivisions and 16 section offices. One construction Subdivision is responsible for looking
after major construction works and substation related O&M works of the entire division.
As on 31 March 2012 the Division has total of 97,118 consumers that included 34 High
Tension (HT) consumers and 97084 Low Tension (LT) consumers. Average input power for this
division is 342 Million Units (MUs) per annum. This division has large potential for commercial
and residential consumers. During year 2011-12 total revenue collection from this Division was
to the tune of Rs. 113.064 crores .This division has distribution loss to the tune of 9.5%.
The residential, commercial and industrial consumer’s together account for nearly
61.30% of the total consumers and 58.22% of the connected load, 100% of the consumers have
metered connections and no unmetered (agriculture) connection account for total connected load.
Ballarshah Division’s performance is exceptionally good, with distribution losses of 9.5%
(mostly technical losses), billing efficiency of 91.55%.
The distribution system is fed through 11KV supply network. Thus there is only
population of 11/0.4 KV distribution transformers. There are 1413 11/0.4 KV distribution
transformers. Total length of 11 KV & 33 KV network is 2342.30 Km including overhead line
for 11 KV & 33 KV. Total length of LT network is 3324 Km and existing HT: LT ratio of
1:1.70.
58
Area under this Division is not densely populated but geographical large area and thus
“Ways leave” problems are not predominated in the area. Due to industrial growth in Chandrapur
district, large residential colonies and complexes and associated commercial complexes are
developing at fast rate. There has been a spurt in growth in past ½ years in residential and
commercial sector consumers. Most of the network has served more than their prescribed life
and needs renovation. It is essential to upgrade existing system and to erect new infrastructure
for meeting this load demand growth.
4.2.2 Basic Data of Ballarshah Division
In order to prepare the cost benefit analysis for the proposed investment, the following
basic data has been used:
(Table No.4.2.2.1:-Basic Data of Ballarshah Division)
Sr. No Particulars Unit 2010-11
1. Total Input to Division MUs 342.77
2. Total units Sold. MUs 315.74
3. Loss of Distribution MUs 27.07
4.
Total Demand:
Demand from Consumers
Government Subsidy
Rs. Crores
Rs. Crores
Rs. Crores
131.16
-
-
5.
Employee Cost Rs. Crores. 8.38
Repairs & Maintenance Cost Rs. Crores. 1.71
Any other Cost Rs. Crores. 3.36
6. Total Cost for the Division Rs. Crores. 13.46
7. Rate Realized/ billed Unit Rs/Unit 4.22
8. Rate Realized/ input Unit Rs/Unit 3.88
Note :- Refer ANNEXURE VI
59
4.2.3 Rationale and Method of calculation
The following rates have been utilized to calculate the benefits of the DPR of Ballarshah
Division under Infrastructure Plan Phase II Project:
1. Additional Units Available for Sale due to the System’s Enhanced Capacity to meet Demand
Growth: The difference between [Actual Rate of Realization for the Division] and the [Average
per Unit Cost of Purchase of Power for the State], i.e.:
[Rs. 4.22/unit] – [Rs. 2.79/unit] = [Rs. 1.43 /unit]
2. Units Saved due to Technical Loss Reduction: Average per Unit Cost of Purchase of Power
for the State, [Rs. 2.79/unit].
3. Additional Revenue due to Commercial Loss Reduction: Actual Division-wise per Unit
Billing Rate. For Ballarshah Division this is: [Rs. 4.22 /unit]
The rationale for using the aforesaid rates is as follows:
1. The Infra-Plan Project envisages addition of new capacity and energy savings due to reduction
in system losses. In order to create additional sales, additional power will have to be purchased to
utilize the additional capacity created and the growth in consumers. The power will then be sold
to the consumers.
2. Since additional sales will be made from the additional power purchased, the rates applicable
for the calculation of benefits for additional sales are based on the difference between [Actual
per Unit Rate of Realization for the Division] and the [Average per Unit Cost of Purchase of
Power for the State]. In cases where additional capacity created by the system improvements
exceeds the short-term growth in demand up to 2014-2015, any surplus capacity will be absorbed
by the consumers in subsequent years.
60
3. The Technical Loss Savings will enable MSEDCL to lower its power purchase requirements
to meet the growth in demand. Hence, the benefits due to Technical Loss Savings will be
calculated at the [Average per Unit Cost of Purchase of Power for the State].
4. Each Unit of Commercial Loss Savings will enable MSEDCL to sell the units it had already
purchased but were unable to realize in sales. Hence, the Commercial Loss Savings will bring
benefits to the tune of Division-wise per Unit Billing Rate. Hence for each DPR, the [Actual
Division-wise per Unit Billing Rate] is used to calculate the benefits due to Commercial Loss
Savings.
4.2.4 Cost Benefits Analysis
Statement of additional sales & reduction in losses with proposed scheme.
(Table No.4.2.4.1:- Cost Benefit Analysis of Ballarshah Division)
Year Additional Sales of
Energy (MU’s)
Technical Loss
Reduction (MU’s)
Commercial Loss
Reduction (MU’s)
Total Benefit in
(Rs. Lakhs)
2012-13 0.00 9.90 2.58 335.04
2013-14 20.18 16.72 4.87 794.68
2014-15 21.79 15.77 4.61 1003.85
2015-16 23.53 23.46 6.58 1342.85
In
Horizon
Year
23.53 23.46 6.58 1342.85
[ Avg. Rate of Realization (Rs. Per kwh)-Weighted Average Cost of Purchase 1.43
(Rs. Per Kwh)]
Weighted Average Cost of Purchase (Rs. Per Kwh) 2.79
Divisional Rate of Sale (Rs. Per Kwh) 4.22
Note: - Refer APPENDIX Formulae for calculation (1)
61
4.2.5 Financial Viability Calculations for Infrastructure scheme of Ballarshah
I) Project Particulars
(Table No.4.2.5.I.1- Phasing of expenditure of Ballarshah Division)
Sr. No Project Particular
Cost
(Rs in Lakhs)
1 Cost of the project 2030.75
2 Phasing of expenditure
(Year wise) (Percentage)
2011-12 20% 406.15
2012-13 40% 812.30
2013-14 25% 507.69
2014-15 15% 304.61
Note: - Refer APPENDIX Formulae for calculation (2)
II) A. Benefits due to additional sale of energy
(Table No.4.2.5.II.A.1:- Benefits due to additional sale of energy )
Sr. No Million Units
1 Additional sale of energy in 2015-16 without implementation of
scheme
130.01
2 Additional sale of energy in 2015-16 with implementation of
scheme
145.65
3 Net additional sale of energy with implementation of scheme 15.64
Note: - Refer APPENDIX Formulae for calculation (3)
62
B. Benefits due to savings in losses
(Table No.4.2.5.II.B.1:-Benefits due to saving in loss)
Sr. No. Million Units
1 Technical Loss reduction in 2015-16 28.41
2 Commercial loss reduction in 2015 -16 7.736
3 Total Savings in losses 36.15
Note: - Refer APPENDICES Formulae for calculation (4)
III) To calculate financial benefits due to additional sale of energy
(Table No.4.2.5.III.1:- Financial benefits due to additional sale of energy)
Sr. No.
1 Average tariff of state excluding subsidy if any (Rs. Per Unit) 4.35
2 Average subsidy i.e. Tariff compensation (Rs per unit)
3 Total Revenue ( Rs per unit) 4.35
4 Average cost of power purchased from Generating companies
(Rs Per unit)
2.79 5 Inter State wheeling charge (if not included above)
6 Wheeling charge payable for intra state wheeling
7 Total Cost of Power (Rs. Per Unit) 2.79
8 Net Revenue (Rs Per Unit) 1.56
9 Value of benefits (Net) due to additional sale of energy 24.40
Note: - Refer APPENDIX Formulae for calculation (5)
IV) Financial benefits due to saving in losses = 56.39
(Note: - Refer APPENDIX Formulae for calculation (6) )
63
V) Other benefits (Details are as given below)
VI) Total benefit to the utility due to the scheme = 1346.53
(Table No.4.2.5.VI.1:- Total Benefit to the utility due to scheme)
Sr. No. Time Period Percentage Cost (Rs in Lakhs)
1 1 Year 0% 000.00
2 2 Year 25% 335.71
3 3 Year 30% 402.85
4 4 Year 30% 402.85
5 5 Year Onward 100% 15% 201.43
Note: - Refer APPENDIX Formulae for calculation (7)
VII) IRR Calculation
(Table No. 4.2.5.VII.1-IIR Calculation)
Year Investment O & M Charge @ 3% Financial Benefits
(Rs in Lakhs)
Net Financial
Benefits
1 406.15 6.09 000.00 -412.24
2 812.30 12.18 336.63 -487.85
3 507.69 7.62 403.96 -111.34
4 304.61 4.57 403.96 94.78
5 0.00 201.98 201.98
6 0.00 201.98 201.98
7 0.00 201.98 201.98
8 0.00 201.98 201.98
9 0.00 201.98 201.98
10 0.00 201.98 201.98
11 0.00 201.98 201.98
64
12 0.00 201.98 201.98
13 0.00 201.98 201.98
14 0.00 201.98 201.98
15 0.00 201.98 201.98
16 0.00 201.98 201.98
17 0.00 201.98 201.98
18 0.00 201.98 201.98
19 0.00 201.98 201.98
20 0.00 201.98 201.98
21 0.00 201.98 201.98
22 0.00 201.98 201.98
23 0.00 201.98 201.98
24 0.00 201.98 201.98
25 0.00 201.98 201.98
IRR 14.70%
Note: - Refer APPENDIX Formulae for calculation (8)
4.2.6 Benchmarking
I) Establishing Benchmarks
As a part of its overall strategy to turn around the company’s financial position and in
order to ensure a judicious investment in infrastructure development in each division, MSEDCL
has established the following benchmarks which the divisions will be responsible to attain during
the period up to the horizon year of 2009-10. These benchmarks have been agreed with MERC
and form a part of the approved Multi Year Tariff Plan.
65
(a) Reduction in distribution losses
(Table No.4.2.6.I.a.1:- Base Line Loss Levels & Target Loss Levels)
(b) Reducing loading of distribution transformers:
Target to reduce loading of the distribution transformers from the present level ranging from
100% - 150% to 80% in the Horizon year
(c) HT-LT ratio improvement expected after implementation:
(Table No.4.2.6.I.c.1:- HT-LT ratio present & projected level)
Base-Line Loss Levels Target Loss Levels
For Circles with above 50% Distribution losses 4.5% reduction in every year
For Circles having losses between 35% to 50% 3.5% reduction in every year for three
years and 1.5% in next two years
For Circles having losses between 20% to 35% 3% in first two years and 1% in next
three years
For Circles having losses below 20% 1.5% in first two years and 1% in next 3
years
Present Level Projected Level
1:1.700 1:1.65
1:1.705 1:1.60
1:1.710 1:1.55
1:1.715 1:1.50
66
(d) Reduction in DTC failure rate to 5% in urban Areas & 7% in rural areas.
(e) Improvement in power factor through proper Reactive Power Management Plan by installing
capacitors at substations/ DTCs/ lines, as follows:
Power Factor to be brought to 0.90 in rural areas;
Power Factor to be brought from 0.90 to 0.95 in urban areas;
Power Factor to be brought from 0.95 to 0.99 in industrial areas.
(f) Improvement in Voltage Profile to meet the Standard of Performance given by MERC. These
benchmarks are now being applied by MSEDCL not only for this Infra Plan Project, but also for
all its operations throughout Maharashtra. MSEDCL has established an Internal Reforms (IR)
Section which is responsible for monitoring the progress made towards achieving these targets in
all divisions.
(II) Monitoring of benchmark parameters
Based on MSEDCL’s benchmark targets, the Infra Plan project has been designed to
achieve the following targets by the horizon year of 2014-15. The project’s success in meeting
these targets will be monitored by both the Infrastructure Plan unit and by MSEDCL’s IR section
as the project progresses.
67
(Table No.4.2.6.II.1:- Benchmarking Parameters)
Sr. No Benchmark Parameters Units Present Level in
2009-10
Level to be achieved
in 2014-15
1 Input Power MUs 342.77 375.74
Total Units Billed MUs 315.74 354.10
Total Units Lost MUs 27.07
(7.9 %)
21.64
(5.8 %)
2 Rate per billed unit Rs. / Unit 4.22 3.94
3 Rate per input unit Rs. / Unit 3.88 3.70
4 Metering Efficiency
(Nos. of meters)
% 100% 100%
5 Billing efficiency % 97.10% 98%
6 Collection efficiency % 100.5% 120%
7 HT/LT 1:1.70 1:1.50
8 Distribution Transformer
Failure Rate
% 5.2 4.2
9 HT Capacitors installed Nos. 18 -
Note: - Refer APPENDIX Formulae for calculation (9)
68
CHAPTER-5
CONCLUSION, RECOMMENDATIONS & FUTURE SCOPE
5.1 Conclusion
1) The work of Infra Plan will be carried out as per Company’s existing specifications and
standards, and all equipment and materials will be as per standards prevalent in industries.
2) In view of the large scope of the Infra Plan works and scope of the proposed investments,
MSEDCL has taken a strategic decision to tender out the works on single point responsibility
“Trunkey” contractor basis to reputed and qualified contractors.
3) Looking into the size of the works and duration it is felt that it is well within reach as effective
control management and project monitoring can be done.
4) The proposal is techno-economical viable considering the early benefits to be provided to the
consumers and the rate of return available in the instant proposal.
5) Additional economic benefits will be realized as a result of the project investments due to
improved availability and reliability of the power supply. Although these have not been
quantified in financial terms, they include an increase in production capacity of agricultural
enterprises and industries, a reduction in the cost of production due to improved productivity, a
reduction in lost time, and promotion in the growth and expansion of productivity activities.
6) A study of the existing and proposed EHV sources has been made and distribution system
improvements have been analyzed by simulating alternative configurations. Considering the
spare distribution capacity and the power to be saved on account of reduction in losses, the net
savings due to reduction in losses have also been worked out.
69
7) Based on the interruption data available, system improvement works have been identified.
Under the R&M component of the works, reconductoring (upgrading) of undersized and/or
severely deteriorated lines has been proposed to help reduce the distribution system losses and
improve the system reliability; the optimal sizes for cable replacements have been determined
based on the forecast demand for the service areas.
8) In order to ensure equity in the cost benefit analyses and to accurately assess the impact of the
proposed investments on the tariff to be charged under the Multi Year Tariff Plan, the Financial
Statements and Projections have been made using the State’s Average Weighted Cost of
Purchase for the units saved due to the Technical Loss Reduction (Rs. 2.79/ unit) and the
Division’s actual Rate of Realization for units saved due to the Commercial Loss Reduction
(Rs. 3.88/ unit).
For additional units available for sale due to the system’s enhanced capacity to meet the
growth in demand, the additional revenue realized is calculated based on the difference between
the Division’s Actual Rate of Realization (Rs.4.22/- unit) and the State’s Weighted Average
Purchase Cost (Rs. 2.79/ unit), i.e., Rs. 1.43/- unit. The results of this evaluation, along with IRR
calculations of Table No. 4.2.5.VII, basic data of table no.4.2.2 and cost benefit analysis of table
no.4.2.4 of Ballarshah Division are given in chapter 4 of this report.
70
5.2 Recommendations or Suggestions
1) When RA bills are submitted by the loan section to the PFC empanelled banker. The PFC
empanelled banker charges the processing fee to the contractor for getting amount credited to his
bank account form PFC Delhi. This cost of transaction imposed by PFC empanelled banker is
bear by contractor and no compensation is provided to him by MSEDCL. Therefore MSEDCL
should compensate this loss occurring to the contractor in (70%, 20%/15%, 10%) billing process.
MSEDCL can also compensate this loss by including it in contact price.
2) The benchmark Parameters will serve as broad indicators and assist in decision making by
Regulatory Commissions while approving system.
3) The model given for updating the benchmark costs may be updated after 3-5 years as there
may be changes in technology that impact on actual capital costs, and changes in the weightages
of the composite price indices. If the base of the price indices shifts, appropriate adjustments
would need to be made.
4) In the case of 33 kV, 11 kV and LT lines utilities adopt different sizes of conductor and types
of supports. This might have been adopted by the MSEDCL based on the requirements. Based on
the costs furnished the MSEDCL shall try to economise the costs.
5) The costs of 33/11kV substations vary considerably in the layouts etc., type of structures,
control rooms and other related civil works, etc. Since the utilities are constructing large number
of substations is rural areas under RGGVY and other schemes, it is desirable the layouts are
simplified and the costs reduced.
71
6) The distribution transformer capacities are standardised in most of the utilities to 15/16 kVA
single phase, 25 kVA, 63 kVA and 100 kVA. It may not be desirable to go in for large capacity
distribution transformers unless they have to cater highly concentrated loads / load density is
high. Installation of smaller capacity transformers reduces LT line lengths and losses thereby
improving the voltages.
5.3 Future Scope
The Indian government has set an ambitious target for system augmentation in the
distribution segment. It plans to quadruple the distribution network by adding 3.2 million ct. km
of distribution lines in the Eleventh five year plan (2007-2012). Another 4.2 million ct. km is
planned to be added in the Twelfth five year plan (2012-2017). Thus by the end of the Twelfth
Plan, the total distribution network in the country would have doubled, thus greatly facilitating
delivery of power to the expanding base of end-use customers. Further, it plans to bring about
214,000 MVA of transformer capacity in the Eleventh Plan and another 270,000 MVA in the
Twelfth Plan enabling MSEDCL to do great work to strengthen its infrastructure in future.
72
BIBILOGRAPY
[1] Turan Gonen, “Electric Power Distribution System Engineering”, Chapter 1, Page No. (3 to
4).
[2]http://www.mercindia.org.in/Regulations.htm, Maharashtra Electricity Regulatory
Commission Guidelines for In-Principle Clearance of Proposed Investment Schemes February
2005.
[3]http://www.mercindia.org.in/Regulations.htm, Maharashtra Electricity Regulatory
Commission (Standards of Performance of Distribution Licensees, Period for Giving Supply and
Determination of Compensation) Regulations, 2005
[4]http://www.mercindia.org.in/Regulations.htm Maharashtra Electricity Regulatory
Commission (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005.
[5] Anshu Bharadwaj and Rahul Tongia, “Distributed Power Generation: Rural India – A Case
Study”, Member, IEEE,
Page No.1.
[6] Maharashtra State Electricity Distribution Company Ltd. Turnkey Contract for Electrification
Works for Mahavitaran Infrastructure Plan Phase – II A. (i) BID DOCUMENT INVITATION &
INSTRUCTIONS TO BIDDERS (Version - II) Volume I of V. (ii) BID DOCUMENT PRICE
VARIATION FORMULAE & CRITERIA FOR APPROVAL OF VENDORS (Version – II)
Volume III of V (Common for All Bids).(iii) BID DOCUMENT TECHNICAL
SPECIFICATION Volume IV of V.(iv)BID DOCUMENT PRICE BID Volume V of V. July
2009.
[7] The Smart Grid vision For India’s power sector, United States Agency for International
Development by PA Government Services, Inc., March 2010.
73
[8] Amarjit Singh Pabla ,“Electric Power Distribution”, Sixth Edition, Chapter 5 to Chapter 21,
Page No. (246 to 963), 2011.
[9] http://www.mercindia.org.in/Regulations.htm, Maharashtra Electricity Regulatory
Commission (Multi Year Tariff) Regulations, 2011.
[10] http://www.indiabudget.nic.in, Box11.1 Power sector reforms, Energy, Infrastructure and
Communications Budget 2012-13.
[11] A report on, “Transmission & Distribution In India”, by A joint initiative of WEC‐IMC and
Power Grid Corporation of India Limited.
[12] http://www.mahadiscom.in/ from June to August 2012.
[13] http://www.mahadiscom.in/ongoing-projects.shtm from June to August 2012.
[14]http://www.mahadiscom.in/Infrastructure_project-phase 22may/ Infrastructure_ Plan_
Projects.shtm, Infrastructure projects. From June to August 2012.
[15] http://www.forumofregulators.gov.in/Capital-cost-banchmarking.aspx, Capital cost
benchmarks for distribution business-Administrative staff college of India.
[16] Websites visited.
Important Websites visited
Sr. No. Sr. No.
1 http://www.powermin.nic.in/ 4 http://www.cea.nic.in/
2 http://www.recindia.nic.in/ 5 http://www.nldc.in/
3 http://www.ippai.org/ 6 http://www.iexindia.com/
74
APPENDIX
1) Formulae for calculation of Table No.4.2.4.1
Additional Sale of Energy million units (MUs) is taken from ANNEXURE IV
Technical Loss Reduction (MUs) is taken from ANNEXURE II
Commercial Loss Reduction (MUs) is Taken from ANNEXURE II
Technical Loss Reduction for the corresponding year without investment =
[Total Technical losses for (A) of the corresponding year without investment] –
[Total Technical Losses for (A) of the corresponding year with investment]
Commercial Loss Reduction (MUs) of the corresponding year =
[Total Non-Technical losses of the corresponding year without investment option] –
[Total Non-Technical Losses of the corresponding year with investment option]
Total Benefits in Rs (Lakhs) of the corresponding year =
[Additional Sale of energy] * [Average Rate of Realization (Rs/kwh) – Weighted
Average cost of purchase of power] + [Technical Loss Reduction (MU’s) * Weighted
Average cost of purchase (Rs/kwh) of power]
2) Formulae for calculation of Table No.4.2.5.I.1
Cost of project is taken from ANNEXURE XIII NZ of Infrastructure Work Plan II,
Details of Proposed Works under MSEDCL Infrastructure Plan Project, Division
Ballarshah, Circle Chandrapur, Zone Nagpur, Maharashtra State Electricity Distribution
Co. Ltd.
Expenditure of the corresponding year = [ Percentage of corresponding year] *
[Cost of project]
3) Formulae for calculation of Table No.4.2.5.II.A.1
Refer ANNEXURE IV for data.
Net additional sale of energy with implementation of scheme =
75
[Additional sale of energy (Lus) in 2015-16 with implementation of scheme] –
[Additional sale of energy lakh units (Lus) in 2015-16 without implementation of
scheme]
4) Formulae for calculation of Table No.4.2.5.II.B.1
Refer ANNEXURE V for data.
Total Saving in Losses = [ Technical Loss Reduction(Lus)] + [ Commercial Loss
Reduction lakh units(Lus)]
5) Formulae for calculation of Table No.4.2.5.III.1
Net Revenue (Rs. Per Unit) = [Total revenue (Rs. Per unit)] – [Total cost of power (Rs.
Per unit)]
Value of benefit due to additional sale of energy = [ Net Revenue (Rs. Per unit)] *
[Net additional sale of energy with implementation of scheme (from Table No.8.5.II.A.1]
6) Formula for calculation of Financial benefits due to saving in losses
Financial benefits due to saving in losses = [Net Revenue (Rs. Per unit)] * [Total saving
in Losses]
7) Formulae for calculation of Table No.4.2.5.VI.1
Total benefit to the utility due to the scheme = [Total benefit in (Rs. Lakhs) of
corresponding year (2015-2016)] * [ Percentage of successive year (1st,….,5th
)]
8) Formulae for calculation of the Table No.4.2.5.VII.1
Value for Investment is taken from Table No.8.5.I.1
76
Value for Financial benefits is taken from Table No.8.5.VI.1
Operation & Maintenance charges @ 3% = [ (Investment of the corresponding year / 2) *
(0.03)]
Net Financial benefits = [ Financial benefit of the corresponding year] – [ Operation &
Maintenance charges @ 3% + Investment of corresponding year]
9) Formulae for calculation of Table No.4.2.6.II.1
Total units lost (in MUs): (Total input – Total units billed (HT+LT)) in MUs
Rate per billed unit: (Total demand in Rs.) / Total Units Billed
Rate per input unit: (Total demand in Rs.) / Total Units Input
Metering Efficiency = Total nos. of metered consumers / Total nos. of consumers
Billing Efficiency: Total units billed / Total Input.
Collection Efficiency: Total amount Collected / Total demand (in Lakhs).
HT: LT Ratio. = Total km of HT including UG: Total km of LT including UG.
77
ANNEXURES
ANNEXURE I
ANNEXURE ‘A’ P
(Attachment of O.O. NO.29 (GAD/CGM (T/E)/MPR/33940) Date-04/11/2010)
CONSUMER NORMS
Sr.No Offices Norms accepted vide BR 1273 dated
11.10.2010
1 2 3
1) Section Office
Rural Section
Section Office
(U) Section Office in Corporation area
(U)Section Office in Metro area i.e. Bhandup & Pune
7500 Consumers
12500 Consumers
15000 Consumers
20000 Consumers
2) Sub Division
Rural Sub Division 1)30000 Consumers
2)75-85 Villages
3) Sub Division shall have 4 to 5
Section Offices.
4)No. of DTC shall also be
Seen while creating S/Dn.
Urban Sub Division 50000 Consumers with 4 Section
Office
Urban Sub Division in Corporation Area 60000 Consumers with 4 Section
Offices
Urban Sub Division in Metro area i.e. Bhandup & Pune 80000 Consumers
3) Division Office
Rural Division Minimum 4 Sub Divisions
Urban Division Minimum 4 Sub Divisions
78
Urban Division in Corporation area Minimum 4 Sub Divisions
Urban Division in Metro area i.e. Bhandup & Pune Minimum 4 Sub Divisions
4) O&M Circles Minimum 5 Divisions
5) Zones 4 O&M Circles
Note:-
The bifurcation process for creating above new offices shall start after 50% increase in
consumer strength. However new offices shall commence only after consumer’s strength reaches
with minimum number of consumer prescribed for each office even by restructuring. Special
treatment/norms shall be provided for creating new offices having revenues dimensions.
Any other deviation in above consumer norms shall be decided by board.
79
ANNEXURE II
ANNEXURE IX (A) & (B)
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.
Division: Ballarshah, Circle Chandrapur, Zone Nagpur
Energy Losses In Transformers
Without Investment Option
Sr.
No
Transfor
mer Size
Qty
.
Nos
.
Loss in
Transformer
(KW)
Full
Load
curre
nt of
Trans
forme
r
Average total
peak current
of
Transformer
Total Energy Losses ( Mus)
Total
KVA
Iron
Los
s
Full
Load
Loss
201
1-12
201
2-13
201
3-14
2014
-15
2015
-16
1 Power Transformers
10 MVA 2 2000
0
8.50 57.00 525 171.00 0.07
5
0.08 0.09 0.10 0.12
5 MVA 12 6000
0
5.50 33.00 262 122.24 0.33
8
0.39 0.46 0.54 0.63
Total ( I) 14 8000
0
14.0
0
90.00 0.41 0.48 0.55 0.64 0.74
2 Distribution Transformer
KVA
Capacity
25.00 252 6300 0.13 0.65 33.34 22.06 0.20 0.23 0.25 0.28 0.31
50.00 6 300 0.20 0.92 66.67 61.25 0.01 0.01 0.01 0.01 0.01
63.00 576 3628
8
0.28 1.23 84.00 33.31 0.71 0.79 0.88 0.98 1.09
100.00 529 5290
0
0.31 1.70 133.3
4
82.57 1.00 1.11 1.23 1.37 1.53
200.00 50 7500 0.62 2.60 266.6
8
192.68 0.19 0.21 0.24 0.26 0.29
11/0.4 141
3
1032
88
1.53 7.10 2.11 2.35 2.61 2.91 3.24
Total
( II)
141
3
1032
88
1.53 7.10 2.11 2.35 2.61 2.91 3.24
Grand
Total
(I+II)
142
7
1832
88
15.5
3
97.10 2.52 2.83 3.17 3.55 3.98
Average Energy Loss Peak Loss * LLF * 8760/1000000 in MUs
LLF = 0.8 * (LF) * (LF) + 0.2 LF =0.408
80
ANNEXURE II
ANNEXURE- IX (A) & (B)
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.
Division: Ballarshah, Circle Chandrapur, Zone Nagpur
Energy Losses In Transformers
Sr.
No.
Transformer
Size
With Investment Option
Qty.
Nos.
Average
total peak
current of
Transformer
Line 07-08
Total Energy Losses (MUs)
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
1 Power Transformers
10 MVA 2 99.73 0.075 0.08 0.03 0.03 0.04
5 MVA 18 142.58 0.338 0.39 0.26 0.29 0.32
TOTAL (I) 20 242.31 0.41 0.48 0.29 0.32 0.36
2 Distribution Transformer
KVA
capacity
25.00 252 26.67 0.20 0.23 0.11 0.12 0.14
50.00 6 53.34 0.01 0.01 0.00 0.00 0.00
63.00 567 67.20 0.71 0.79 0.51 0.57 0.64
100.00 839 106.67 1.00 1.11 0.93 1.04 1.15
200.00 50 213.35 0.19 0.21 0.10 0.11 0.12
11/0.4 KV 1723 2.11 2.35 1.66 1.84 2.05
Total (II) 1723 2.11 2.35 1.66 1.84 2.05
Grand Total
(I+II)
1743 2.52 2.83 1.95 2.17 2.41
Average Energy Loss Peak Loss * LLF * 8760/1000000 in MUs
LLF = 0.8 * (LF) * (LF) + 0.2 LF =0.408
81
ANNEXURE III
ANNEXURE X (A) & (B)
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.
Division: Ballarshah Circle: Chandrapur Zone: Nagpur
Summary Statement Of Total Energy Losses (MUs )
Sr.
No.
Sub-System Without Investment Option With Investment Option
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2011
-12
2012
-13
2013
-14
2014
-15
201
5-
16
A Technical Losses
I Sub-Transmission
a) Power
Transformer
0.41 0.48 0.55 0.64 0.74 0.41 0.48 0.29 0.32 0.36
b) Lines 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II Primary
Distribution
a) Feeders 0.67 0.68 0.69 0.71 0.73 0.67 0.36 0.37 0.38 0.39
b) Distribution
Transformers
2.11 2.35 2.61 2.91 3.24 2.11 2.35 1.66 1.84 2.05
III Secondary
Distribution.
a) LT line losses 18.36 25.65 29.80 33.85 41.25 18.36 17.35 16.40 15.50 14.6
5
a) Due to
Augmentation of
Conductor Size
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
b) Due to
provision of Add.
DTCs
(excluding for
load growth )
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Technical Losses for
"A"
21.55 29.15 33.66 38.11 45.96 21.55 20.53 18.71 18.04 17.4
5
B Non Technical
Losses
5.60 7.58 8.75 9.91 11.95 5.60 5.34 4.49 4.33 4.19
Total ( A + B ) 27.15 36.73 42.41 48.02 57.91 27.15 25.87 23.20 22.37 21.6
4
82
ANNEXURE IV
ANNEXURE V
ANNEXURE- XI
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.
Division Ballarshah, Circle Chandrapur , Zone Nagpur
Sub-Transmission / Primary Distribution Feeder Analysis- Additional Units available for sale.
Feeder Name Amp
Existin
g
Amp
Horiz
on
Without Investment Option With Investment Option
Additional Energy Sale ( MUs) Additional Energy Sale ( MUs)
2012-
13
2013-
14
2014-
15
2015-
16
2012-
13
2013-
14
2014-
15
2015
-16
Total 2112.0
0
2623.
75
110.7
2
116.8
1
123.2
3
130.01 110.7
2
130.8
6
138.0
5
145.6
5
ANNEXURE-XII
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.
Division Ballarshah, Circle Chandrapur , Zone Nagpur
Statement of Additional Sales & Reduction in Losses with Proposed Scheme
Year Additional Sale of
Energy ( MU's )
Technical Loss
Reduction (MU's)
Commercial Loss
Reduction (MU's)
Total Benefit
in (Rs. Lakhs)
2012-13 0.00 8.62 2.24 335.04
2013-14 14.05 14.94 4.26 797.65
2014-15 14.82 20.06 5.58 1007.16
2015-16 15.64 28.51 7.76 1346.53
In Horizon Year 15.64 28.51 7.76 1346.53
[ Average Rate of Realization (Rs. Per Kwh) - Weighted Average Cost of
Purchase (Rs. Per Kwh) ]
1.43
Weighted Average Cost of Purchase (Rs. Per Kwh) 2.79
Divisional Rate of Sale (Rs. per Kwh)
4.22
83
ANNEXUE VI
Format – B
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.
Division Ballarshah, Circle Chandrapur , Zone Nagpur
Loss Reduction & sales increase
POSITION AS ON 2011-12
Name of
Division
Cost of
Projects
Input
Energy
Total Loss (As
per IR)
Commercial Loss Technical Loss (
As per DPR)
Total sale
Ballarpur Crores MU’s % MU’s MU’s % MU’s % MU’s
1 2 3 4 5 6 7 8 9
20.31 342.77 27.15 7.9% 5.60 21.55 6.3% 315.62
NOTE:-LOSS REDUCTION WILL START FROM 2007-08 TO 2009-10,DATA BASE TAKEN
FROM IR REPORT UPDATED ON 19.12.2006
Format – B
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.
Division Ballarshah, Circle Chandrapur , Zone Nagpur
Loss Reduction & sales increase
POSITION AS ON 2015-16
Sr.
No.
Name of
Division
Cost of
Projects
Input
Energy
Total Loss
(As per IR)
Commercial Loss Technical Loss
( As per DPR)
Total sale
1 Ballarpur Crores MU’s % MU’s MU’s % MU’s % MU’s
1 10 11 12 13 14 15 16 17
20.31 375.74 21.64 5.8% 4.19 1.1% 17.45 4.6% 354.10
NOTE:-LOSS REDUCTION WILL START FROM 2007-08 TO 2009-10,DATA BASE TAKEN
FROM IR REPORT UPDATED ON 19.12.2006
84
ANNEXURE VI
Format-B
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.
Division Ballarshah, Circle Chandrapur , Zone Nagpur
Loss Reduction & sales increase
POSITION AS ON 2011-12 TO 2015-16
Sr.
No.
Name of
Division
Cost of
Project
Reduction in
Total Losses
Reduction in
Technical
Losses
Reduction in
Commercial
Losses
Increase In
Sales
1 Ballarshah Crores MUs % MUs % MUs % MUs %
1 18 19 20 21 22 23 24 25
20.31 5.53 2.2% 4.10 1.6% 1.42 38.48 10.87
%
NOTE:-LOSS REDUCTION WILL START FROM 2007-08 TO 2009-10,DATA BASE TAKEN
FROM IR REPORT UPDATED ON 19.12.2006
85