Revised Petition for Approval of Final Generation Tariff ...

Revised Petition for Approval

of

Final Generation Tariff

of

Shri Singaji Thermal Power Project

(SSTPP-Stage-I, Unit No.1&2 (2x600MW))

Revised Petition for Final Generation Tariff of 2x600 MW SSTPP Stage-I Units (1&2)

2

TABLE OF CONTENTS

S. No. PARTICULARS Page No.

I REVISED FINAL TARIFF PETITION 3-14

II PRAYER 15

III AFFIDAVIT 16-17

IV AUTHORIZATION 18

1 INTRODUCTION OF 2X600MW SSTPP STAGE-I , KHANDWA

19-28

2 PROJECT COST ESTIMATE & CAPITAL EXPENDITURE 29-36

3 FUNDING OF PROJECT 37-39

4 NORMS OF OPERATION 40

5 COMPONENTS OF TARIFF 41

6 RETURN ON EQUITY 42-43

7 INTEREST & FINANCE CHARGES 44-45

8 DEPRECIATION 46-47

9 O & M EXPENSES 48-49

10 INTEREST ON WORKING CAPITAL 50-51

11 COST OF SECONDARY FUEL OIL 52-56

12 ENERGY CHARGES (VARIABLE CHARGES) 57

13 OTHER CHARGES 58

14 NON TARIFF INCOME 59

15 FIXED CHARGES AND OTHER CHARGES 60-61

V FORMS – INDEX 62


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The above named petitioner M.P. Power Generating Company Ltd. respectfully

submits as under:-

1. The petitioner is wholly owned company of Government of M.P engaged

in generation of electricity in the State of Madhya Pradesh. It is a

successor entity of erstwhile Madhya Pradesh State Electricity Board

(MPSEB).

2. The Company has been incorporated as part of implementation of the

power sector reform in M.P. initiated by the Government of MP. The

Company has taken over the generation activities of MPSEB. The

company, while operating and maintaining its existing Units, is also

constructing new power plants for increase in generating capacity in the

State of Madhya Pradesh. The Company is registered under Companies

Act 1956 and was incorporated on 22.11.2001. Its registered office is at

Shakti Bhawan, Rampur, Jabalpur.

3. Earlier, the activities of Generation, Transmission and Distribution have

been looked after in the State of M.P. by the integrated utility i.e. MPSEB,

which was constituted under Section 5 of Electricity (Supply) Act 1948.

The Government of MP enacted M.P. Vidyut Sudhar Adhiniyam 2000

BEFORE THE M.P. ELECTRICITY REGULATORY COMMISSION BHOPAL

Petition No. of 2017 IN THE MATTER OF Approval of Final Generation Tariff for 2x600 MW, Shri Singaji Thermal Power project (SSTPP) Stage I, Units no. 1 & 2, Distt. Khandwa, from CoD of Unit No #1 & 2 upto 31.03.2016, under Section 62 of the Electricity Act, 2003. M.P. Power Generating Company Ltd, Jabalpur.

: Petitioner

Vs

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

2. M.P. Power Transmission Co. Ltd., Jabalpur.


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and in the spirit of said Act, the unbundling process of the MPSEB was

initiated by registering the following five Companies:-

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

(MPPGCL) (GENCO).

(ii). Madhya Pradesh Power Transmission Co. Ltd.,

Jabalpur (MPPTCL) (TRANSCO).

(iii). Madhya Pradesh Poorva Kshetra Vidyut Vitaran

Company Ltd. Jabalpur (MPPKVVCL) (EAST

DISCOM).

(iv). Madhya Pradesh Madhya Kshetra Vidyut Vitaran

Company Ltd. Bhopal. (MPMKVVCL) (CENTRAL

DISCOM).

(v). Madhya Pradesh Paschim Kshetra Vidyut Vitaran

Company Ltd. Indore (MPPKVVCL) (WEST

DISCOM).

4. The above mentioned five companies, which were registered in

November 2001, entered into Operation & Management Agreement with

erstwhile MPSEB. They worked as agent of MPSEB from July 2002 to

May 2005. The companies started independent functioning w.e.f.

01.06.2005 under Cash flow mechanism as per State Government order

dated 31.5.2005.

5. A Sixth Company, namely the MP Power Trading Company Ltd. was

incorporated as per the Notification of State Government dated 3.6.2006,

specifying functions of TRADECO for purchase of electricity in bulk

from Generating Companies / Traders, from within & outside the State

and supply electricity in bulk to the Electricity Distribution Companies in

the State of Madhya Pradesh.

6. GoMP vide letter No. 6071/13/12/02 dated 29.03.12 has changed the

name of MP Power Trading Company Ltd to MP Power Management


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Company Ltd and it has been made the holding company for all the

three DISCOMS of MP. Further, GoMP vide its notification dated

26.04.2012 has merged M.P. State Electricity Board with MP Power

Management Company Ltd.

7. MPPMCL and the three DISCOMS of MP have entered into a

management and corporate functions agreement on 05.06.2012, whereby

the three DISCOMS have engaged MPPMCL to represent them in all the

proceedings relating to power procurement and tariff petitions filed or to

be defended before CERC, MPERC and other regulatory authorities,

Appellate Tribunals, High Courts, Supreme Court and CEA etc..

Therefore the three DISCOMS have not separately been made as

respondents.

8. The petitioner is having various power stations/projects in the state of

Madhya Pradesh. Shri Singaji Thermal Power Project (SSTPP) is one

such coal based power project of the Petitioner located near village

Dongalia in Khandwa District of Madhya Pradesh. The site is situated at

a distance of 45 Kms from the district headquarters Khandwa and the

nearest railway station is Bir, at a distance of around 5 Km.

9. In view of remoteness of the Malwa region comprising the districts of

Indore, Ratlam, Ujjain and Dewas (located near the western fringe of the

State) from the major power generating stations (which are located in the

eastern side) great difficulty was being faced in supplying bulk power to

this flourishing region showing substantial growth in demand of

electrical energy for domestic, industrial, agriculture and commercial

consumption. To bridge the gap between the demand and supply, Govt.

of M.P. decided to install 2x500 MW Malwa Thermal Power Project

(Load Based Power Station) near village Dongalia/Purni in Khandwa

district and accorded administrative approval vide letter No. 2966/F-

3/37/13/99dated 18.05.2001.

10. The erstwhile M.P. State Electricity Board (MPSEB) accorded

administrative approval for installation of 2x500 MW coal fired Malwa


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Thermal Power Project (Ultimate capacity – 2000 MW) at village

Purni/Dongalia, District Khandwa, vide resolution passed in its 27th

meeting held on 14.12.2004 at Bhopal.

11. Initially the Project Cost was tentatively estimated at Rs. 4434.69 Crore

based on prevailing orders awarded on M/s. BHEL (Aug.2005) for

Bhoopalpalli/Vijaywada TPS Stage-IV (1x500MW), Kahalgaon Stage-II

(2x500 MW) (Year 2004) and the DPR of Bhoopalpalli (Year 2005). This

tentative estimate of Rs. 4434.69 Crore was approved by the BoD

MPPGCL vide resolution passed by circulation during 31.01.2006 to

10.02.2006.

12. Govt. of M.P., vide letter no. 6421/13/2005 dated 24.09.2005, had

directed to make efforts to obtain “Mega Power Projects Status” to the

project. One of the main criteria for grant of Mega Power Project Status

was to call offers for implementation of the project through ICB route.

Central Electricity Authority (CEA), vide letter No.

70/SR/HS/TPIA/2004 dated 18.03.2005 had advised that while inviting

bids under ICB route, the Generating companies instead of specifying a

particular Unit size may specify a range to get competitive bids from

large number of manufacturers (500 + 20% in case of 500 MW units). It

was further advised that inputs like coal and water need to be tied up

and environmental clearance obtained for the maximum size specified in

the range. In this context, Ministry of Power, GoI, New Delhi, had

advised, vide office memorandum No. 3/2/2006-DVC dated 05.02.2007

to strictly follow the guidelines prescribed by the CEA as above.

13. As such, the project capacity in the first phase was panned as 2*600 MW

and the GoMP accorded revised administrative approval for establishing

2x(500-600) MW Project in the first phase with maximum capacity of the

project as 4X(500-600) MW , vide letter No. 27.13.2007 dated 02.01.2008 .

14. Ministry of Power, Govt. of India, granted Mega Power Project Status to

the project vide Certificate No. 6/3/2006-S.Th. dated 03.01.2007. A

corrigendum to the aforesaid certificate was issued vide letter No.


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6/3/2006-S.Th. dated Dec, 2010 of Ministry of Power, Govt. of India,

changed name of the Project as “Shri Singaji Thermal Power Project” and

installed capacity of 2x600 MW.

15. The above mentioned initial tentative project cost estimate of Rs. 4434.69

Crore was subsequently updated considering the benefits of exemption

of Custom Duty and Excise Duty available due to Mega Power project

Status for the project. The updated project cost was worked out as Rs.

4053 Crore. This tentative project cost estimate of Rs. 4053 Crore was

approved by the BoD, MPPGCL vide resolution passed in its 21st meeting

held on 26.08.2006. This project cost estimate was approved by the

GoMP vide its letter No. 3186/13/2007 dated 04.05.2007 in which the

GoMP approved availing of PFC loan of Rs. 3242.00 Crore (80% of Project

Cost) and GoMP Equity of Rs. 810.60 Crore (20% of the Project Cost) for

the subject project.

16. This updated cost estimate of Rs. 4053 Crore was, however, subject to

further revision after placement of orders for civil works for the Main

Power Block, Balance of Plant (BoP) and Non-EPC works. During the

finalization of BoP contracts in July-Aug 2009, need was felt to revise the

project cost estimate due to receipt of high prices of BoP vis-à-vis the first

revised estimated cost. The project cost estimate was, therefore, again

revised to Rs. 6750.00 Crore. This revised project cost estimate was

approved by the BoD MPPGCL vide resolution passed in its 44th meeting

held on 26.08.2009 at Bhopal. The revised project cost estimate of Rs.

6750.00 Crore was approved by the GoMP vide letter of Energy

Department vide No. 8271/13/2009 dated 17.11.2009. In its above

approval dated 17.11.2009, the GoMP also approved availing of PFC loan

of Rs. 5400 Crore (80% of revised project cost of Rs. 6750.00 Crore) and

GoMP Equity of Rs. 1350 Crore (20% of revised project cost estimate of

Rs. 6750 Crore).

17. The Project Cost estimate has now been revised to Rs. 7820.00 Crore.

This revision in project cost was necessitated due to increase in

expenditures on account of Land, Civil Works, Railway Transportation


8

System, Spares, etc., increase in IDC due to delay in commissioning of

Units and change in interest rates on loan. The revised project cost

estimate of Rs. 7820.00 Crore has been approved by the BoD MPPGCL in

its 72nd meeting dated 04.01.2014 held at Bhopal and by GoMP vide letter

dated 23.01.2015.

18. Since the subject Units No. 1 & 2 of SSTPP Stage-I are being installed to

meet the growing demand of power in the State of M.P., the Petitioner

offered 100% power to be generated from these Units to Respondent

No.1 (M.P. Power Trading Co. Ltd., now M.P. Power Management Co.

Ltd.) for onward sale to the Discoms of M.P. on the rates to be

determined by the Hon’ble Commission. Respondent No.1 conveyed its

consent for purchase of 100% power form these Units. A Power

Purchase Agreement to this effect has been signed between the Petitioner

and Respondent No.1 on 04.01.2011. First Amendment Agreement to the

aforesaid PPA was signed on 26.09.2012 for incorporating the change in

name of Respondent No.1 from M.P. Power Trading Company Ltd.

(TRADECO) to M.P. Power Management Co. Ltd. (MPPMCL).

MPPGCL has filed the petition for approval of Provisional Tariff of

Unit1&2 of SSTPP Stage-1 on 31.01.2014 before Hon’ble Commission

Petition (No. 5/2014). The Hon’ble Commission vide its order dated

10.11.2014 has determined the provisional Tariff of Unit-1 of SSTPP

Stage-1 & permitted 95% recovery of Fixed Cost for FY 14 to FY 16 for

Unit-1.

Further, MPPGCL has filed Interlocutory application for seeking

permission to raise bill on provisional basis and recover annual charges

for power to be generated & supplied to MPPMCL by MPPGCL from its

600 Mw UnitNo.2 of SSTPP Stage-1(IA No.02 of P-5/2014). The Hon’ble

Commission vide order dated 18.03.2015 Unit-2 of SSTPP Stage-1 has

permitted 95% recovery of Fixed Cost for FY 14 to FY 16.

Subsequently, MPPGCL has filed the MYT petition for FY 17 to FY 19

(petition No. 08 of 2016) for all Power Stations of MPPGCL. The Hon’ble


9

Commission, in its order dated 14.07.2016 (Para 176) has allowed

MPPGCL to recover the Annual Fixed Charges of SSTPP Stage-

1(Unit1&2) on provisional basis for FY 17 to FY 19.

19. The instant petition is filed under Section 62 of Electricity Act, 2003,

which provides determination of tariff by the Appropriate Commission

for supply of electricity by the generating company.

20. MPERC (Terms and Conditions for Determination of Generation Tariff)

(Revision-II) Regulations, 2012, for the control period FY14 to FY16,

notified on 12.12.2012, have come into force from 01.04.2013. Further,

MPERC Terms and Conditions for Determination of Generation Tariff)

Regulations, 2015, for the control period FY17 to FY 19, notified on

01.01.2016 have come into force from 01.04.2016.

21. Accordingly, the petitioner has filed the petition for determination of

final generation tariff for 2x600 MW, Shri Singaji Thermal Power project

(SSTPP) Stage-1, Units No. 1 & 2, for the period w.e.f. CoD of Unit No.1

i.e. 01.02.2014 upto 31.03.2019 in accordance with above mentioned

Regulations.

22. The motion hearing on the above petition No. 09 of 2017 was held at

MPERC, Bhopal on 20.06.2017. The Hon’ble Commission in its Daily

Order dated 20.06.2017 has made following observation in para 2, which

is reproduced below:-

(i) The petitioner has filed a consolidated petition for determination of

final tariff for FY 2013-14 to FY 2015-16 on the basis of Annual

Audited Accounts alongwith determination of Multi-year Tariff

(MYT) for FY 2016-17 to FY 2018-19 on projection basis.

(ii) Vide Commission’s MYT order dated 14th July’ 2016 in petition

No. 08/2016, the Multiyear Tariff of SSTPP PH-I has already been

determined by the Commission on provisional basis for the same

control period of FY 2016-17 to FY 2018-19.


10

(iii) Therefore, determination of another tariff based on different capital

cost for the same control period would not be appropriate in the

subject petition.

In view of the above, the petitioner is directed to file a revised

petition for determination of final tariff only till 31st March’ 2016

based on its Annual Audited Accounts.

23. In compliance to the above directives of Hon’ble Commission, MPPGCL

is filing this revised petition for approval of Final Generation Tariff for

2x600 MW, Shri Singaji Thermal Power project (SSTPP) Stage I, Units no.

1 & 2, Distt. Khandwa, from CoD of Unit No #1 & 2 upto 31.03.2016,

under Section 62 of the Electricity Act, 2003.

24. The details of Capital Expenditure are elaborated in Form TPS 5B,

however, in the instant petition, MPPGCL has considered the Capital

Expenditure as captured and capitalized in the Audited Books of

Accounts of the respective years( FY 14, FY 15 & FY 16) as detailed in

Chapter-2 of instant petition. This is in accordance with the methodology

adopted by Hon’ble Commission in the earlier Final Tariff orders issued

by Hon’ble Commission for STPS PH-4 Sarni, SGTPS PH-3 Birsinghpur

& ATPS PH-3 Chachai

25. The Unit No.1 of SSTPP Stage-I was synchronized on 31.08.2013 at 15:04

Hours and put on Commercial Operation w.e.f. 01.02.2014. The Unit No.

2 was put on Commercial Operation w.e.f. 28.12.2014. Proviso 19 of

MPERC Generation Tariff Regulations 2012 provides for accounting of

Infirm Power as Unscheduled Interchange (UI) and paid for from the

Regional/State UI pool account. Accordingly the same is considered

while determination of Project cost in Form TPS 5B under the head Start

up fuel. The summary with respect to infirm Power is tabulated

hereunder:-


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Table 25.1

Particulars Amount (in Rs Crores)

Unit 1 Unit 2 Total

1 Coal 28.75 41.14 69.89

2 Oil 76.22 46.72 122.94

3 Subtotal 104.97 87.85 192.83

4 Less Revenue from Infirm power -7.89 -4.00 -11.89

5 Total 97.08 83.85 180.94

26. The unit wise amount of IDC as on CoD of respective units is considered

in accordance with MPERC Regulations, 2012 while determination of

Capital Cost. The same is elaborated quarter-wise and detailed in Form

TPS Form 5B & summarized hereunder:-

Table 26.1 Rs. Crores

Particulars Total

Amount

Capitalized in Books of Accounts

Balance held in CWIP &

capitalized in subsequent

years

IDC of Unit-1 as on its CoD 659.19 583.99 75.19

IDC of Unit-2 as on its CoD 933.91 872.37 61.54

27. The unit-wise abstract of total Capital expenditure incurred as on their

respective CoD is tabulated hereunder:-

Table 27.1 Rs. Crores Particulars Unit-1 Unit-2

Capital Cost (Excluding IDC & Overheads & Infirm power)

2729.14 2726.18

Add. Interest during construction 659.19 933.91

Add. Overheads 44.67 53.68

Add. Cost of generation of Infirm Power 104.97 87.85

less: Revenue from sale of infirm Power -7.89 -4.00

Total Capital Cost as on CoD 3530.08 3797.62


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28. The unit-wise details of Capital expenditure as capitalized in Audited

Books of Accounts for respective years is tabulated hereunder:-

Gross Block Details

Table No.28.1 Rs. Crores

Summary of Capitalization- SSTPP Khandwa

SSTPP PH-1

FY 2013-14 FY 2014-15 FY 2015-16

Gross Block As on Unit-1 CoD

Addition CoD to 31-03-2014

As on 31-03-2014

De

du

cti

on

Ad

dit

ion

As on

Unit-2

CoD

Addition from CoD

to 31-3-2015

As on 31-03-2015

Ad

jus

t.

Ad

dit

ion

As on

31-03-2016

Unit-1 3152 296 3449 -16 90 3522 22 3544 24 107 3675

Unit-2 363 15 377 0 3244 3621 42 3663 35 121 3819

Total 3515 311 3826 -16 3334 7143 63 7207 59 228 7494

29. The Petitioner has filed this revised petition for approval of final tariff of

2*600 MW, Shri Singaji Thermal Power Project (SSTPP) Stage-I, Units No.

1 & 2, w.e.f. the date of commercial operation (CoD) of Unit No.1 up to

31.03.2016 based on Audited figures on the CoD of Units No. 1 and 2

respectively.

30. Requisite formats have been filled in and enclosed with this revised

petition. It is submitted that the Petitioner has furnished the

information/details as required under the aforesaid formats to the extent

of the same as available with the Petitioner.

31. The Other Expenses, comprising of Rent, Rates and Taxes payable to

Government, MPERC Fee, Cost of Chemicals & Consumables, Entry Tax,

Common charges, Water Charges, Publication Expenses and

SLDC/RLDC/NLDC and Transmission Charges, etc., are on actual basis

for FY 14 to FY 16 and are duly recorded in the Audited Books of

Accounts of Respective years.

32. For working out Return on Equity (RoE), the Base Rate of 15.5% has been

considered by MPPGCL as per MPERC Regulations 2012. Due to any


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change in Government policy or otherwise, if any, liability of tax and

duties arises for any Year of the control period, the same shall be charged

extra.

33. The Energy Charges (Variable Charges) for the control period FY 2013-

14 to FY 2015-16 has been billed in accordance to proviso 41 of MPERC

(Terms & Condition for determination of Generation Tariff) (Revision-II)

Regulation, 2012. Therefore, no truing up of Energy Charges has been

considered in this revised petition.

34. The performance parameters and cost elements have been duly

elaboraterd in different Chapters as enclosures to the revised petition.

35. Accordingly, the Year wise Fixed Charges has been worked out and tabulated below.

FY 2013-14 to FY 2015-16 Table 35.1 Rs. Crores

Particulars

FY14 FY 15 FY 16 W.E.F. COD of Unit # 1

(01.02.2014 to 31.03.2014)

Unit # 1 Unit # 2 Total (Unit # 1 & 2)

W.E.F. 01.04.2014

to 31.03.2015

W.E.F. COD of Unit # 2 28.12.2014

to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 Return on Equity 104.37 107.46 101.79 209.25 210.80

2 Depreciation 168.48 173.31 180.55 353.86 372.88

3 Interest & Finance Charges 340.60 355.72 364.65 720.37 708.68

4 O&M Expenses 77.70 83.88 83.88 167.76 181.08

5 Intt. On Working Capital 59.32 73.27 95.70 168.96 151.27

6 Secondary Oil Expenses 23.36 19.36 19.36 38.72 22.88

7 Annual Fixed Charges 773.83 812.99 845.94 1658.93 1647.58

8 No. of days in operation 59 365 94 366

9 Proportionate Fixed Charges. 125.08 812.99 217.86 1030.85 1647.58

10 Non Tariff Income -17.33 -9.00 -2.32 -11.32 -26.39

11 Net Fixed Charges 107.75 803.99 215.54 1019.53 1621.19


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36. Apart from above, other charges are claimed on actual basis for FY 14 to

FY 16 as per Audited Books of Accounts for respective years as tabulated

hereunder:-

FY 2013-14 to FY 2015-16

Table 36.1 Rs.Crores

Particulars

FY14 FY 15 FY 16

W.E.F. CoD of Unit # 1 (01.02.2014

to 31.03.2014)

Unit # 1 Unit # 2

Total

(Unit # 1 & 2)

W.E.F. 01.04.2014

to 31.03.2015

W.E.F. CoD of Unit # 2 28.12.2014

to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 MPERC Fees 0.01 0.18 0.00 0.18 0.36

2 Water Charges 1.49 4.83 1.24 6.07 29.12

3 Cost of Chemical & Lub. 0.34 1.13 0.29 1.42 3.67

4 SLDC Charges 0.02 0.12 0.03 0.15 0.12

5 Rent, Rate & Taxes 0.05 0.12 0.03 0.15 0.13

6 Entry Tax 0.00 0.00 0.00 0.00 0.13

7 Common Exp. 0.00 1.03 0.27 1.30 0.00

Total 1.91 7.41 1.86 9.27 33.53

37. It is humbly requested before the Hon’ble Commission to kindly permit

the same.


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PRAYER

In light of the Hon’ble Commission daily order dated 20.06.2017 in petition No.

09 of 2017, MPPGCL is pleased to file this revised petition by complying with

the directives of Hon’ble Commission. The petitioner respectfully prays that

Hon’ble Commission may be pleased to:-

(a) Approve the Final Generation tariff of 2*600 MW, Shri Singaji Thermal

Power Project (SSTPP) Stage-I, Units No. 1 & 2, from their respective

dates of Commercial Operation till 31.03.2016, as submitted in Para 35 of

this revised petition.

(b) Permit additional recovery on account of Rent, Rates and Taxes payable

to Government, MPERC Fee, Cost of Chemicals & Consumables, Water

Charges, Publication Expenses, Entry Tax, Common Expenses and

SLDC/RLDC/NLDC and Transmission Charges etc, levied by various

authorities on the Petition in accordance with law, on actual basis, over

and above the fixed and variable charges.

(c) Permit differential billing and recovery of interest on the differential

amount of Provisional & Final Tariff in accordance with proviso 15.3 &

15.4 of MPERC Regulations, 2012.

(d) Permit recovery of expenses understated/ not considered in this revised

petition at a later stage, if required.

(e) Condone any inadvertent omissions/ errors/ short comings and permit

the applicant to add/ change/modify/ alter this filing and make further

submissions as may be required at later stages.

(f) Pass such orders as Hon’ble MPERC may finds appropriate in light of

the facts and circumstances of the case, to grant relief to petitioner.

Date: 20.07.2017 (Sanjay Kumar Tripathi)

Place: Jabalpur Officer-in-Charge For and on behalf of MP Power Generating Co. Ltd Jabalpur


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1. Introduction of 2x600 MW SSTPP Stage-I, Khandwa.

1.1 Shree Singaji Thermal Power Project (SSTPP) is located at village

Purni/Dongalia in Khandwa District of Madhya Pradesh. The site is

situated at a distance of 45 Km from district Head Quarter Khandwa.

The nearest railway station is Bir at a distance of 5 Km from the project

site. Bir Railway Station is 17 Km from Talwaria junction. Railway

Station on Itarsi-Khandwa Station is connected with Talwaria Junction

Railway Station by a separate single line. In view of severe power crisis

prevailing in the State, it was initially decided by GoMP to install two

Units of 500 MW each at SSTPP (erstwhile known as Malwa TPP) site,

which were identified by Site Selection Committee, CEA for

implementation during 12th Plan period.

1.2 The project installation has been taken up with the following requisite

clearances:

Govt. of Madhya Pradesh accorded administrative approval vide

letter No. 2966/F-3/37/13/99 Dated 18.05.2001 for installation of

2x500 MW Malwa Thermal Power Project at village Dongalia/Purni

in Khandwa district. Erstwhile MPSEB accorded administrative

approval for installation of 2x500 MW Coal Fired Malwa Thermal

Power Station (Ultimate capacity -2000 MW) at village Dongalia/

Purni, Distt. Khandwa, vide resolution passed in its 27th meeting

held on 14.12.2004 at Bhopal.

Approval to Initial Project Cost Estimate of Rs. 4434.69 Crore was

accorded by the BoD MPPGCL vide Resolution passed through

circulation during 31.01.2006 to 10.02.2006.

Approval of 80:20 funding pattern through loan (80%) and equity

(20%), accorded by the GoMP vide letter No. 6421/13/2005 dated

24.09.2005.


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Govt. of MP accorded revised administrative approval for

installation of 2x(500-600) MW project in the first phase with

maximum capacity of the project at 4X(500-600) MW, vide letter No.

27/13/2007 dated 02.01.2008.

Ministry of Power, Govt. of India, granted Mega Power Project

Status to the project vide Certificate No. 6/3/2006-S.Th. dated

03.01.2007. A corrigendum to the aforesaid certificate was issued

vide Ministry of Power, Govt. of India, letter No. 6/3/2006-S.Th.

dated Dec., 2010 on the changed name of the Project as “Shri Singaji

Thermal Power Project” and installed capacity of 2X600 MW.

Administrative approval was granted by GoMP for adopting Sub-

Critical technology for the project, vide Energy Department letter

No. 3/1/13/2006 dated 05.02.2007.

Approval of updated project cost estimate of Rs. 4053 Crore,

considering the benefits available due to Mega Power Project Status

for the project, was accorded by the BoD MPPGCL vide resolution

passed in its 21st meeting held on 26.08.2006 . This project cost

estimate was approved by the GoMP vide its letter No.

3186/13/2007 dated 04.05.2007 in which the GoMP approved

availing of PFC loan of Rs. 3242.00 Crore (80% of Project Cost) and

GoMP Equity of Rs. 810.60 Crore (20% of the Project Cost) for the

subject project.

Approval of revised project cost estimate of Rs. 6750 Crore was

accorded by the BoD MPPGCL vide resolution passed in its 44th

meeting held on 26.08.2009 at Bhopal. This revised project cost

estimate of Rs. 6750.00 Crore was approved by the GoMP vide

Energy Department letter No. 8271/13/2009 dated 17.11.2009. In its

above approval dated 17.11.2009, the GoMP also approved availing

of PFC loan of Rs. 5400 Crore (80% of revised project cost of Rs.


21

6750.00 Crore) and GoMP Equity of Rs. 1350 Crore (20% of revised

project cost estimate of Rs. 6750 Crore).

Approval of revised project cost estimate of Rs. 7820.00 Crore was

accorded by the BoD MPPGCL vide resolution passed in its 72nd

meeting held on 04.01.2014 at Bhopal.

PFC Loan – Initial sanction for loan amount of Rs. 2730 Crore was

granted by M/s. PFC, vide its letter No. 03:02:MPPGCL:05:01 Malwa

dated 29.05.2006 , against our request for sanction of loan of Rs.

3548.00 Crore (80% of Rs. 4434.69 Crore). Subsequent sanction of

loan amount of Rs. 3242 Crore, considering the updated project cost

to Rs. 4053 Crore, was granted vide PFC letter No.

03:02:MPPGCL:06:02:20701001 Dated 30.03.2007.

Against MPPGCL’s request for enhancing the loan amount to Rs.

5400 Crore (80% of revised project cost of Rs. 6750 Crore) M/s. PFC,

vide letter No. 03/22/MP/MPPGCL/Shree Singaji/Vol. 1/20701001

dated 19.03.2010, enhanced the loan amount from Rs. 3242 Crore to

Rs. 5160.42 Crore.

In view of the revised project cost of Rs. 7820.00 Crore, approved

vide BoD resolution dated 04.01.2014 wherein the BoD also decided

to explore the possibility of seeking funds towards “additional

equity” from GoMP and accordingly, GoMP has enhanced the

Equity sanctioned to Rs. 1521.20 Crores.

Water Allocation- Consumptive water requirement for these Units

with COC of 5 and “Zero Discharge” was estimated to 3705 Cu

M/Hr i.e. 32.5 Million Cu M per year. Allocation of 72 Million Cu M

per year water (for 4x600 MW) from WRD GoMP has been received

vide WRD, GoMP, letter No. LPCB/31/Tech/223/2010 dated

25.05.2012. NOC from CWC was already obtained in Nov 2002 for


22

use of water from Indira Sagar Reservoir on river Narmada, vide

letter dated 01.11.2002.

Environmental clearance- Environmental clearance for installation

of SSTPP Stage I, 2x600 MW, was accorded by the Ministry of

Environment and Forest, GoI, vide letter No. J-13011/50/2007-IA.II

(T) dated 01/10.2008.

Forest Clearance- Forest clearance was accorded by the Ministry of

Environment and Forest, GoI, vide their letter No. 8-78/2007-FC

dated 18.05.2012.

Approval of M.P.P.C.B.- MPPCB approval was accorded vide their

letter No. 7690/TS/MPPCB/2012 dated 19.10.2012, granting

permission to establish 2x600 MW .

Coal Linkage - Letter of Assurance for supply of 4.9939 MTPA coal

was given by SECL vide No. SECL/BSP/S&M/COMM/375/MTPP

MPGCL TPP (LOA)/714 dated 25.06.2010. Subsequently a Fuel

Supply Agreement (FSA) has been signed with M/s. SECL, Bilaspur

on 24.01.2013 for supply of 4.9939 MTPA coal to the project.

Subsequent, three addendums to the FSA, Addendum-1, Addendum-2

and Addendum-3, were signed on 01.07.2013, 31.07.2013 and

24.12.2013 respectively. A supplementary MOU has been signed

between the Petitioner (MPPGCL) and SECL for supply of additional

11 MT coal for SSTPP, Khandwa for commissioning activities

including achievement of CoD, on 24.12.2013.

The GoI has recently issued directives, enabling Thermal Power

Generating Companies for swapping the coal linkage between their

thermal power stations. Accordingly, with the help of GoI, MPPGCL

has swapped coal linked to PH-4, STPS Sarni (2x250MW) from WCL to

PH-1, SSTPP, Khandwa (2x600MW) with SECL coal. The addendum to


23

Coal Supply Agreement dated 08.01.2016 for above coal swapping has

been executed. This attempt will reduce the landed coal rate to certain

extent at SSTPP, Khandwa as the coal from nearby WCL mines will be

supplied.

Civil Aviation Clearance- Airports Authority of India (AAI), New

Delhi issued NOC vide letter no. AAI/20012/19/2002-ARI dated

22.02.2002 for construction of Chimney to a height of 275.00 M. The

NOC issued by the AAI was revalidated vide their letter No.

AAI/20012/19/2002-ARI(NOC) dated 17.01.2006.

1.3 Land Acquisition:-

1107.28 HA land has been acquired for construction of 2 units of SSTPP

Stage I and extension thereafter. Besides that, 168.93 HA land has been

acquired for Colony, Raw Water Intake Pipe Line, Approach Road and

Railway Corridor. Out of above indicated total 1267.35 Ha land, 88.59

Ha is Govt. Revenue land, 130.30 Ha is Govt. Forest land and 1057.32 Ha

is Private land.

1.4 Major Systems of SSTPP Stage-I, 2x600 MW Units No. 1 & 2

Brief description of some of the major systems of SSTPS Stage-I, 2x600

MW Units No.1 & 2, is given below:-

1.4.1 Steam Generator

The Steam Generator is of two pass, Single Arch Controlled

Circulation, Radiant Reheat, Dry Bottom, Balanced Draft,

Single Drum type unit designed for firing Pulverized Coal as

principal fuel. It is provided with oil support burners and

adequate number of coal mills.

Steam Generators are designed to operate with the HP Heaters

out of service condition and deliver steam to meet the Turbo

Generator electrical output at 100% MCR. Steam generator is

suitable for operation with HP-LP turbine by-pass system.

Air pre-heaters of Rotary Regenerative type with electric motor

as main drive and air motor as standby drive is provided for


24

each boiler at back end of the boiler which are connected with

gas duct.

The boiler is provided with a set of soot blowers for on load

cleaning of heat transfer surfaces i.e. water walls, super

heaters, re-heaters, economizers and air heaters.

1.4.2 Boiler Feed Pump

One number electric motor driven and two number Turbine

driven Boiler Feed Pumps each having 50% capacities, horizontal,

centrifugal type are provided with booster pumps mounted on the

common shaft.

1.4.3 Milling Plant

The boiler is provided with 9 Bowl Mills, type XRP 1063.

1.4.4 Electrostatic Precipitator

Each steam generating unit is provided with 2 sets of Electrostatic

Precipitators comprising of 4 independent casing. Each of the four

casing has ten working field in the direction of gas flow across the

width, i.e., a total of 20 working field per pass for collection of fly

ash. Each ESP field as connected to its own transformer rectifier.

Each ESP is having 2 number of ash hoppers per field for

collecting ash collected during operation of the Boiler.

1.4.5 Draft Equipment

Each boiler has been provided with 2 x 60% rated centrifugal

/axial type F.D. Fans, 2 x 60 % radial centrifugal type, variable

speed, variable frequency double suction ID Fans with inlet

damper control and 2 Nos. 60% capacity two stage axial reaction

centrifugal type PA Fans.


25

1.4.6 Steam Turbine Generator Unit

Steam Turbine

The steam turbine is of tandem compound design with separate

HP, IP and 2 Nos. LP Cylinders. HP turbine single flow type,

while IP & LP turbine are of double flow type. The turbine is

condensing type with single reheat. All essential controls and

safety inter-locks are provided. It is having all the essential

auxiliaries.

Condensing Equipment

The Condenser is a two pass single shell surface type, box type,

designed with 3 minute hot well capacity, capable for maintaining

the required vacuum while condensing steam at the maximum

rating of the turbine, and is provided with on load tube cleaning

equipment. 3x50% capacity motor driven condensate extraction

pumps have been provided. Two number vacuum pumps with

100% capacity each are provided to maintain the vacuum in the

condenser by expelling the air and non-condensable gases from

the condenser during operation.

Deaerator and Feed Heater

The unit is provided with a variable pressure spray-cum-tray-type

deaerator. The deaerator consists of integral vent condenser,

deaerating header and feed water storage tank of adequate

capacity.

The high pressure horizontal heaters are provided with both drain

cooling and de-superheating zones in addition to the normal

condensing zone.

All the three low pressure feed water heaters are horizontal type

and are equipped with drain cooling and condensing zones except

LPH-1, which is provided only with external drain cooler.


26

Generator

The generator is directly connected, horizontal shaft, cylindrical

rotor, commensurately rated for the turbine outputs. The

generator is provided with brushless excitation system. It is

capable of operating in isolation or in parallel and with the power

grid, with voltage variations of (+/-) 5% and frequency variations

between 47.5 Hz to 51.5 Hz.

The Excitation System is capable of supplying excitation current

of the generator under all conditions of operation of load, voltage

and power factor.

1.4.7 Coal Handling System

The unloading conveyor system through wagon tippler (2 Nos.)

and Track Hopper (1 No.) has been provided with Primary

Crusher House (PCH) having 4 Nos. Rotary Breaker Type

Crushers, from where it shall be taken to Secondary Crusher

House having 4 Nos. Ring Granulator Type Crushers. The

crushed coal is either taken to fill Boiler bunkers or is stacked in

crushed coal stock piles by using conveyors for feeding boiler

bunkers or Stacker Reclaimer for stacking in stock yard.

1.4.8 Ash Handling System

Bottom Ash (BA) will be collected in water impounded BA hopper

located beneath the boiler. Bottom ash from water impounded BA

hopper will be removed and sent to ash slurry pump house using

jet pumps. The bottom ash so collected in the slurry sump shall be

pumped in slurry form to ash pond.

Fly ash, collected in various ducts and ESP hoppers, shall be

extracted and conveyed to buffer hopper automatically and

sequentially by means of vacuum generated by mechanical

exhausters and transported to 3 nos. (one standby) fly ash silos by


27

means of pressure conveying system. Each fly ash silo has been

provided with five outlets, two for unloading fly ash in to open

trucks through ash conditioner, two for unloading ash in to closed

trucks through telescopic chute, one for future use.

1.4.9 Fuel Oil (FO) System

HFO/LDO system is envisaged for boiler start-up and flame

stabilization. A separate Fuel Oil Handling system consisting of

facility of unloading of HFO/LDO from railway wagons, their

storage, heating & transfer to pressurizing pump house, has been

provided.

1.4.10 Plant Water System

Water will be drawn from existing Indira Sagar Reservoir. Three

dedicated Raw Water Intake system shall meet requirements of

make up for Circulating water/CT make up for Condenser and

other Auxiliaries, Ash handling & disposal, Boiler Make-up, Plant

Services, Fire fighting, water for bearing cooling and other

auxiliary systems etc. The Circulating water system is of closed

circuit cooling system and having 2 Nos. Natural Draft Cooling

Towers, one for each of the unit.

1.4.11 Electrical System

The Power will be generated at 21 KV and stepped up to 400 KV

for evacuation. Evacuation of power from the units would be

through four nos. 400 KV transmission lines to Pithampura 1 & 2,

Julwania & Chhegaon and through 2 Nos. 220 KV lines to

Chhegaon.

1.4.12 Instrumentation and Controls

The control & monitoring System for steam Turbine, Steam

Generator (Boiler) and other Balance of Plant station auxiliaries is

built around maxDNA, a microprocessor based Distributed


28

control system, specifically designed and developed to suit Power

plant environment. The control system is configured in a

functionally distributed architecture to enable plant operation

from a centralized control room.


29

2. Project Cost Estimates & Capital Expenditure

2.1 Initially the Project Cost for was tentatively estimated at Rs.4434.69

Crores based on prevailing orders awarded on M/s. BHEL (Aug.2005)

for Bhoopalpalli/Vijaywada TPS Stage-IV (1x500MW), Kahalgaon Stage-

II (2x500 MW) (Year 2004) and on the DPR of Bhoopalpalli (Year 2005).

This tentative estimate of Rs. 4434.69 Crores was approved by the BoD

MPPGCL vide resolution passed by circulation during 31.01.2006 to

10.02.2006.

2.2 The above mentioned initial tentative project cost estimate of Rs. 4434.69

Crore was subsequently updated considering the benefits of exemption

of Custom Duty and Excise Duty available due to Mega Power project

Status for the project. The updated estimated project cost was worked

out as Rs. 4053 Crores. This tentative project cost estimate of Rs. 4053

Crores was approved by the BoD MPPGCL vide resolution passed in its

21st meeting held on 26.08.2006. This project cost estimate was approved

by the GoMP vide its letter No. 3186/13/2007 dated 04.05.2007, in which

the GoMP approved for availing PFC loan of Rs. 3242.00 Crores (80% of

Project Cost) and GoMP Equity of Rs. 810.60 Crores (20% of the Project

Cost). The updated cost estimate of Rs. 4053 Crores was, however,

subject to further revision after placement of orders for civil work of

Main Power Block, Balance of Plant (BoP) and Non EPC works.

2.3 Subsequently, during finalization of BOP contract in July-Aug 2009, need

was felt to revise the project cost estimate due to receipt of high prices of

BOP with respect to the first revised estimated cost. The project cost

estimate was, therefore, again revised to Rs. 6750.00 Crores, increase in

estimated cost was mainly on account of following reasons:-

(a) Earlier approved project cost of Rs. 4053 Crs. was for 2x500 MW

capacities. Since the order for Main Power Block was placed

through ICB for 2x600 MW capacities, in compliance to

guidelines of Ministry of Power, the project cost need to take


30

into account the actual capacity of the project as 2x600 MW.

The project cost was earlier estimated based on order value of

Bhoopalpalli / Vijaywada (1x500 MW) & Kahalgaon (2x500

MW) projects placed during Year 2005 & 2004 for E&M works

and cost for Civil work was considered from DPR prepared in

2001.

(b) IDC calculation was done considering interest rate as 10.5%,

whereas the interest rate on PFC loan was 11.5% at the time of

first revision of estimate. As such, the estimate for IDC amount

increased from Rs. 612.44 Crores to Rs. 880.34 Crores due to

phasing of expenditure as per actual L-1 Schedule and change

in interest rate.

(c) In the earlier project cost estimate of Rs. 4053 Crores, the value

of Civil & E&M works including Erection, Testing &

Commissioning, freight, insurance, taxes & duties (excl. PV of

Rs. 132.32 Crores) was estimated as 3072.05 Crores. Whereas, in

the second revised estimate the value of Civil & E&M works

including Erection, Testing & Commissioning, freight &

insurance was estimated to be Rs. 5306.4 Crores including the

cost of Main Power Block on the basis of actual order value and

the cost of Balance of Plant & Construction Power based on

prices quoted by the lowest bidders.

(d) A new provision of Rs. 26.4 Crores was required to be made in

the revised project cost estimate towards payment of Entry Tax.

(e) In the earlier approved project cost estimate, a provision of Rs.

16 Crores was made against the head “Cost of Land”.

However, in the revised project cost estimate, a provision of Rs.

65.00 Crores was made on the basis of actual expenditure

incurred in land acquisition activities till that time.

(f) Cost of civil works, which includes GCW-1 (based on actual

order value), GCW-II (other civil works), GCW-III (colony

package) and Rail Transport System is estimated on the basis of

latest estimated cost of these works.


31

(g) A provision of Rs. 247.50 Crores has been made towards Price

Variation in the revised project cost estimate, as against the

provision of Rs. 132.32 Crores made in the earlier approved

project cost estimate on this account.

(h) Cost estimate towards Consultancy Services was enhanced

from Rs. 8 Crore to Rs. 15 Crores due to inclusion of Third Party

Inspection, Project Monitoring works etc.

2.4 This revised project cost estimate of Rs. 6750 Crores was approved by the

BoD MPPGCL vide resolution passed in its 44th meeting held on

26.08.2009 at Bhopal and by GoMP vide Energy Department letter No.

8271/13/2009 dated 17.11.2009. In its approval dated 17.11.2009, the

GoMP also approved availing of loan of Rs. 5400 Crores (80% of revised

project cost of Rs. 6750.00 Crores) from M/s. PFC and GoMP Equity of

Rs. 1350 Crores (20% of revised project cost estimate of Rs. 6750 Crores).

2.5 The project Cost estimate has further revised to Rs. 7820.00 Crores. This

revision in project cost was necessitated due to increase in expenditures

on account of Land, Civil Works, Railway Transportation System, Spares,

etc., increase in IDC due to delay in commissioning of Units and change

in interest rates on loan. This revised project cost estimate of Rs. 7820.00

Crores has been approved by the BoD MPPGCL in its 72nd meeting dated

04.01.2014 held at Bhopal. Revision in the cost estimate to Rs. 7820.00

Crores was mainly on account of the following reasons:-

A. Civil Works- (General Civil Works):-

I. GCW-II got increased due to addition of (a) new requirement

of two outside roads with electrification & (b) award of left

over works. As such, cost of GCW-II increased to Rs. 112.00

Cr. from Rs. 50.50 Cr.

II. After backing out of contractor, GCW-III (colony) works was

re-ordered, at higher cost. Cost for construction of furnished

pre-fabricated accommodation near power house has also been


32

added up in this head. As such, cost of GCW-III increased to

Rs. 177.42 Cr. from Rs. 110.00 Cr.

B. Private Railway Siding –

As per original scheme rail route for coal / oil transportation upto

power house from main line (Itarsi – Surgaon – Banjari – Talwadia –

Khandwa – Bhusawal) was through Bir Via Talwadia. To avoid

engine reversal and surface crossing in handling of coal rakes on

regular basis at Talwadia station on existing busy rail traffic from

Itarsi to Khandwa, Railway insisted to lay a new line from Surgaon-

Banjari to Bir (12.5 Kms.)

Further, additional payment involved in this head include O&M

charges for Bir Station for Ten years amounting to Rs. 30.00 Cr.,

Departmental charges (incl. supervision) and Director & General

charges leviable on Civil, OHE and S&T works at certain rates. D&G

charges are not applicable on the works carried out by railways /

railway approved contractor / client. Thus, cost has increased to Rs.

288.33 Cr. from Rs. 111.00 Cr.

C. Land-

Due to actual cost of land and due to additional land acquired

subsequently, for rail line in between Surgaon-Banjari to Bir and a

portion of approach road parallel to rail line near power house, and

the expenditure required to be incurred as per revised R&R policy,

cost estimate on this account has increased to Rs. 117.50 Cr. from Rs.

65.00 Crores.

D. Additional Spares-

Provision has been made for additional spares of Rs. 60.31 Cr. based

on the project cost, subject to ceiling norms as per Regulation.


33

E. Contingency-

Based on the sanctioned & expected work estimates, there is

reduction in Contingency provision from earlier estimated figure of

Rs. 82.72 Crores to Rs. 40.00 Crores.

F. Establishment –

The earlier approved amount of Rs. 132.54 Crores was for

Establishment expenses. In the revised estimate of Rs. 7820.00 Crores,

a provision of Rs. 60.00 Cr. only has been kept for Establishment

expenses, based on the actual figures till Jun 2013.

G. Start up fuel - Construction & Pre-Commissioning Expenses : -

The earlier provision of Rs. 10.00 Crores. was on account of Startup

fuel. A provision of Rs. 190.78 Crore has been kept against this head,

based on estimated fuel expenditure and revenue earned during

Infirm Power Generation from the two Units, till respective CODs.

This also includes expenditure on account of commissioning power

during trial runs of the Units.

H. Water Charges-

A provision of Rs. 2.50 Cr. towards water charges has been made in

the revised project cost estimate, which was not included in earlier

approved estimate.

I. Increase in IDC –

The IDC amount has increased to Rs. 1473.05 Crores form the earlier

estimated value of Rs. 880.34 Crores. This is mainly due to (a)

additional amount of loan required for funding of increased project

cost, (b) delay in commissioning of Units and (c) change of interest

rates during the currency of loan from 11.5% to 12.75%.


34

2.6 A comparative of the revised project cost estimate is tabulated

hereunder:-

Table 2.6.1

GoMP Project Cost Approval (Letter No. & Date)

Amount in Rs. Crores

1 3186/13/2007 dated 04-05-2007 4053

2 8271/13/2009 dated 17-11-2009 6750

3 F-5-15/2012/13 dated 23-01-2015 7820

2.7 Capital Expenditure till COD of Unit No.1, as on Station CoD and as

on 31.03.2016:-

The Unit wise & component wise details of approved & actual Capital

Expenditure at SSTPP PH-1 Khandwa are elaborated in form TPS-5B. A

summary of same is tabulated hereunder:-

Table 2.7.1 Rs. Crores

SSTPP PH-1

FY 2013-14 FY 2014-15 FY 2015-16

Cap. Expenditure

As on Unit-1 CoD


As on 31-03-2014

Addition As on Unit-2 CoD

Addition from

CoD to 31-3-2015

As on 31-03-2015

Addition FY 16

As on 31-03-2016

Unit-1 3530.08 37.52 3567.61 60.94 3628.55 27.06 3655.61 47.29 3703.76

Unit-2 3215.50 128.12 3343.62 454.00 3797.62 29.23 3826.85 50.11 3877.09

Total 6745.59 165.64 6911.23 514.94 7426.17 56.30 7482.47 97.40 7580.85

Further the detailed bifurcation of Capital Cost as on CoD of Unit-1 & 2

are detailed hereunder:-


Particulars Unit-1 Unit-2

Capital Cost (Excluding IDC & Overheads & Infirm power)

2729.14 2726.18

Add. Interest during construction 659.19 933.91

Add. Overheads 44.67 53.68



Total Capital Cost as on CoD 3530.08 3797.62


35

2.8 Capital expenditure capitalized in Audited Books of Accounts:-

In the instant revised petition, MPPGCL has considered the capital

Expenditure as capitalized in the Audited Books of Accounts of the

respective years. This is in accordance with the methodology adopted by

Hon’ble Commission in the earlier Final Tariff orders issued by Hon’ble

Commission for STPS PH-4 Sarni, SGTPS PH-3 Birsinghpur & ATPS PH-

3 Chachai.

The Unit wise & year wise breakup of Capital Cost as capitalized in the

Audited Books of Accounts for FY 2013-14, FY 2014-15 & FY 2015-16 is

elaborated in the table below:-

Gross Block Details

Table No.2.8.1 Rs. Crores

SSTPP PH-1

FY 2013-14 FY 2014-15 FY 2015-16



As on 31-3-2014

Deduction


Addition from CoD

to 31-3-2015

As on 31-03-2015

Adjustment

Addition As on 31-03-2016

Unit-1 3152.10 296.41 3448.51 -16.31 89.56 3521.76 21.96 3543.72 24.12 107.28 3675.11

Unit-2 362.55 14.91 377.46 -0.17 3244.19 3621.49 41.51 3662.99 34.99 120.57 3818.55

Total 3514.66 311.31 3825.97 -16.48 3333.75 7143.24 63.47 7206.71 59.11 227.85 7493.66

Further the detailed bifurcation of Gross Block as on CoD of Unit-1 & 2

are detailed hereunder:-

Table No. 2.8.2. Rs. Crores

Particulars Unit-1 Unit-2

Hard Cost Capitalized 2428.58 2614.08

Soft Cost

Add: Interest During Construction Capitalized

583.99 872.37

Add: Overheads capitalized 42.45 51.17



Total Amount Capitalized 3152.10 3621.49


36

2.9 Liquidated Damages for delay in completion of facilities

As per the contract, COD of Unit No.1 & 2 were to be achieved within 42

months and 46 months respectively form the effective date of contract

(12.12.2008). The scheduled CoD dated for Unit No.1&2 were 11.06.2012

& 11.10.2012. However, the commissioning targets have slipped for both

the Units.

To avoid contractual problems, which may further affect the

commissioning of these Units, time extension has been granted to M/s.

BHEL, without prejudice to the recovery of LD as per Contract upto

11.11.2013 for Unit #1 & 11.03.2014 for Unit #2 respectively as approved

by BoD MGGCL in 87th BoD meeting. Similarly, time extension has been

granted to M/s. L&T, without prejudice to the recovery of LD as per

Contract upto 31.01.2014 for Unit #1 & 31.07.2014 for Unit #2

respectively as approved by BoD MGGCL in 87th BoD meeting LD shall

be applicable beyond these dates for both Firms.

The recovery on account of LD due to delay in commissioning after the

extension period is under process The actual position in respect of the

LD amount deducted from contractors’ bills shall be submitted before

Hon’ble Commission, after its finalization in due course of time.


37

3. Funding of the Project

3.1 Funding of the project is done through PFC Loan 20701001and GoMP

Equity in 80:20 ratio, as approved by GoMP, vide Energy Department

letter No. 6421/13/2005 dated 24.09.2005.

3.2 PFC had initially sanctioned a loan (No. 20701001) amounting to Rs.

2730.00 Crores, vide sanction letter dated 29.05.2006, for setting up of the

instant project against the Project Cost Estimate of Rs. 4434.69 Crores.

The loan amount sanctioned by M/s. PFC was only 61.56% of the project

cost estimate of Rs. 4434.69 Crores. Subsequently, on MPPGCL’s request,

M/s. PFC vide its sanction letter dated 30.03.2007 enhanced the loan

amount against Loan No. 20701001 to Rs. 3242.00 Crores, being 80% of

the revised project cost estimate of Rs. 4053.00 Crores.

3.3 The aforesaid loan has been further enhanced by PFC to Rs. 5160.42

Crores, against the revised project Cost Estimate of Rs. 6750.00 Crores,

vide PFC sanction letter dated 19.03.2010.

3.4 The Project Cost estimate has further revised to Rs. 7820.00 Crores. On

MPPGCL’s request, PFC vide letter dated 07.02.2014 has enhanced the

above-mentioned loan to Rs. 6328 Crores.

3.5 Initially the tied up Equity with GoMP for SSTPP PH-1 was Rs. 1350

Crores. However, with the revision of project cost detailed above, GoMP

has infused an Equity amounting to Rs. 1521 Crores in the project till

date.

3.6 Presently, the funding pattern of the project through Loan and Equity for

the estimated completed project cost of Rs. 7820.00 Crores is as indicated

in the Table below:-

Funding Pattern through Loan & Equity Table No.3.6.1 Rs. Crores

Particulars Amount

Revised Project Cost 7820

Funding:-

Through PFC loan 6238

Through GoMP Equity 1521

Total 7759


38

3.7 The funding difference of Rs. 61 Crores (Rs.7820 Crs-7759 Crs) are untied

up funds, for which GoMP has been requested; else wise the same shall

be met from the internal resources of MPPGCL.

3.8 The Quarter wise loan and equity drawls are submitted in Form TPS-14.

The details of funding till CoD of Unit No.1 (01.02.2014), as on the CoD

of Unit No.2 (28.12.2014) and that on 31.03.2016 are tabulated hereunder.

Table No. 3.8.1 Rs. Crores

Particulars Funding Total

Proportionate allocation

Unit-1 Unit-2

1 As on Cod of Unit-1 (01.02.2014)

PFC Loan 5070.88 2608.34 2462.54

GoMP Equity 1270.27 653.40 616.87

2 As on Cod of Unit-2 (28.02.2014)

PFC Loan 5700.66 2923.23 2777.43

GoMP Equity 1350.00 693.26 656.74

3 As on 31.03.2015 PFC Loan 5930.03 3037.91 2892.12

GoMP Equity 1350.00 693.26 656.74

4 As on 31.03.2016 PFC Loan 6053.45 3099.62 2953.83

GoMP Equity 1370.00 703.26 666.74

3.9 The Figures for total debt and total equity funding till 31.03.2016 are

actual figures based on the actual loan and equity drawls. The Unit wise

breakup of debt and equity funding is indicative only and is based on

respective Unit wise ratios in the total expenditure on corresponding

dates.

3.10 Ratio of loan and equity drawls as on the CoDs of Unit 1 and Unit 2,

respectively, are indicated in the table 3.6.1 below:


Particulars PFC Loan

Drawls

GoMP Equity Drawls

Debt Equity Ratio

As on CoD of Unit-1 5070.88 1270.27 80% : 20%

As on CoD of Unit-2 5700.66 1350.00 81% : 19%

As may be seen from the above table, total equity drawn for Unit No.1

till its CoD is 20% of total funding for Unit No.1 till its CoD. Similarly,


39

the total equity drawn for Unit No.1 and 2 as on the CoD of Unit No.2,

i.e., Station CoD, is 19% of total funding for Unit No.1 and 2 as on Station

CoD. The Petitioner has, therefore, considered the above equity amounts

as on the respective CoDs and the equity additions indicated above, for

computing the Return on Equity as per MPERC Regulations, 2012.


40

4. Norms of Operation –

4.1 The Norms of operation for Shri Singaji Thermal Power Project (SSTPP)

Stage-I, Units No.1 & 2 (2x600 MW) for the control period FY 14 to FY16

have been considered as prescribed by the Commission in MPERC

(Terms and Conditions of Generation Tariff) (Revision-II) Regulations,

2012 {RG-26 (II) of 2012}.

4.2 Accordingly, following norms are applicable for 2x600 MW, SSTPP

Stage-I, Unit No.1 & 2, for the period from FY 14 to FY 16:

Table 4.2.1

Year PAF Auxiliary Sp Oil Con Heat Rate

% % ml/KWH k Cal/KWH

FY 14 85.00% 6.00% 1.00 2384.25

FY 15 85.00% 6.00% 1.00 2384.25

FY 16 85.00% 6.00% 1.00 2384.25


41

5. Components of Tariff:-

5.1 As per MPERC (Terms and Conditions for Determination of Generation

Tariff) (Revision-II) Regulations, 2012 {RG-26 (II) OF 2012 }, tariff for sale

of electricity from a thermal power generating station shall comprise of

two parts, namely the recovery of Annual Capacity (Fixed) Charges and

Energy (Variable) Charges, to be worked out in the manner provided in

these Regulations.

5.2 The annual Capacity (Fixed Charges) shall consist of :-

Return on Equity

Interest and Financing Charges on Loan Capital

Depreciation

Lease/Hire Purchase Charges

Operation and Maintenance Expenses

Interest Charges on Working Capital

Cost of Secondary Fuel Oil

Special allowance in lieu of R&M or separate compensation

allowance, wherever applicable:

Provided that in case of coal based thermal generating stations,

expenses on normative secondary fuel oil consumption during the

Year shall be included in the Fixed Charge.

5.3 The Energy (Variable) Charges shall cover main fuel cost.

5.4 Energy charges of a generating station consists of Landed Fuel Cost of

primary fuel i.e. Coal as per MPERC Regulations 2012.

5.5 Accordingly, calculation of these charges as per the applicable MPERC

Regulations has been detailed in forthcoming chapters.


42

6. Return on Equity

6.1 Return on Equity for the period FY14 to FY16 has been computed on the

paid up equity capital determined in accordance with Proviso 22 of

MPERC Regulations, 2012 {RG-26 (II) of 2012} and has been computed on

pre-tax basis at the base rate of 15.5%.

6.2 The Year wise & unit wise PFC loan No.20701002 drawls are tabulated

hereunder:-


Financial Year Equity Drawn

Proportionate unit wise

Unit-1 Unit-2

2006-07 40.00

2007-08 95.19

2008-09 64.61

2009-10 56.00

2010-11 249.04

2011-12 242.43

2012-13 363.00

FY 2013-14 (upto CoD of Unit1) 160.00

Subtotal ( As on Cod of Unit-1) 1270.27 653.40 616.87

FY 2013-14 (from CoD of Unit1 to 31-03-2014)

79.73 39.87 39.87

FY 2014-15(upto CoD of Unit 2) 0.00 0.00 0.00



0.00 0.00 0.00

Subtotal( As on 31.03.2015) 1350.00 693.26 656.74

2015-16 20.00 10.00 10.00

Total 1370.00 703.26 666.74

6.3 MPERC regulation provides that where equity actually employed is in

excess of 30%, the amount of equity for the purpose of Tariff has been

limited to 30% and the balance amount has been considered as loan. The

interest rate applicable on the equity in excess of 30%, treated as loan, has

been taken as specified in the applicable Regulation. Where actual

equity employed is less than or equal to 30%, the actual equity deployed

has been considered.


43

Accordingly, the Normative Equity for the purpose of working out

Return on Equity has determined as under:-


Particulars Gross Block

30% of Gross Block

Actual Equity Drawl

Normative Equity for RoE

As on CoD of Unit-1 3152.10 945.63 653.40 653.40

As on CoD of Unit-2 7143.24 2142.97 1350.00 1350.00

6.4 The CoD of Unit No.1 was 01/02/2014 and that of Unit No.2 was

28.12.2014. As such, during FY14, only Unit No. 1 was under commercial

operation for a period of 59 days. During FY 15, Unit No.1 and Unit

No.2 were under operation for 365 days & 94 days, respectively.

Accordingly, the amount of Return of Equity for Unit No.1 and 2 for the

period FY14 and FY15 have been calculated on pro-rata basis for

respective days of operation only.

6.5 The Return on Equity for FY 2013-14 to FY 2015-16 works out as under:-

Return on Equity for the Period FY 2013-14 to FY 2015-16


Particulars

FY14 FY 15 FY 16

W.E.F. CoD of Unit # 1 (01.02.2014

to 31.03.2014)

Unit # 1 Unit # 2

Total

(Unit # 1 & 2)

W.E.F. 01.04.2014 to

31.03.2015

W.E.F. CoD of Unit # 2

28.12.2014 to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 Normative Equity - Opening 653.40 693.26 656.74 1350.00 1350.00

2 Add: Drawls during the Year 39.87 0.00 0.00 0.00 20.00

3 Normative Equity – Closing 693.26 693.26 656.74 1350.00 1370.00

4 Average Normative Equity 673.33 693.26 656.74 1350.00 1360.00

5 Rate of RoE 15.50% 15.50% 15.50%

6 Return on Equity for the year

104.37 107.46 101.79 209.25 210.80

7 Days in operation 59 365 94 366

8 Return on Equity for the period of operation during the Year

16.87 107.46 26.22 133.67 210.80

6.6 It is humbly requested before the Hon’ble Commission to kindly permit

the same.


44

7. Interest & Finance Charges

7.1 Considering the terms of the PFC loan No. 20701001 sanctioned by PFC,

as detailed in Chapter No.3, Interest and Finance charges on loan capital

have been worked out for the period FY14 to FY16, in accordance with

the proviso 23 of MPERC Regulations, 2012 {RG-26 (II) of 2012}.

7.2 Repayment for the respective year has been considered equal to the

depreciation allowed for that Year, in accordance with MPERC

Regulations 2012.

7.3 The Year wise & unit wise drawls of loan (PFC loan No.20701002) are

tabulated hereunder:-


Financial Year Total

Drawls

Proportionate unit wise

Unit-1 Unit-2

FY 2008-09 103.00

FY 2009-10 364.39

FY 2010-11 877.92

FY 2011-12 1533.43

FY 2012-13 1147.62

FY 2013-14(upto CoD of Unit1) 1044.51



133.57 66.79 66.79

FY 2014-15(upto CoD of Unit 2) 496.21 248.10 248.10



229.37 114.69 114.69

Subtotal( As on 31.03.2015) 5930.03 3037.91 2892.12

FY 2015-16 123.42 61.71 61.71

Total 6053.44 3099.62 2953.83

7.4 The PFC has been requested for extension of moratorium period of PFC

loan No.20701001 upto July 2018. The weighted Average Rate of Interest

has been worked out based on actual loan portfolio as detailed in Form

TPS-13. The same is tabulated hereunder:-


45

Table 7.4.1

Financial Year Weighted

Avg. Rate of Interest

1 FY 2013-14 12.96%

2 FY 2014-15 12.97%

3 FY 2015- 16 12.75%

7.5 The CoD of Unit No. 1 was 01.02.2014 and that of Unit No.2 was




Accordingly the amount of Interest on Loan for Unit No.1 and 2 for the



7.6 The Unit wise & year wise Interest on loan for the period FY 2013-14 to

FY 2015-16 has been worked out and tabulated hereunder:-

Normative Interest On Loan for the Period FY 2013-14 to FY 2015-16


Particulars

FY14 FY 15 FY 16


(01.02.2014 to 31.03.2014)

Unit # 1 Unit # 2

Total

(Unit # 1 & 2)

W.E.F. 01.04.2014 to

31.03.2015


28.12.2014 to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 Normative loan - Opening 2608.34 2647.89 2777.43 5425.32 5682.99

2 Add: Drawls during the Year 66.79 362.79 114.69 477.47 123.42

3 Less: Repayment (s) of Normative Loans during the year(depreciation)

27.23 173.31 46.50 219.81 372.88

4 Net Normative loan –Closing 2647.89 2837.37 2845.62 5682.99 5433.52

5 Average Normative Loan 2628.11 2742.63 2811.52 5554.15 5558.26

6 Weighted Avg. Rate of Interest on Actual Loans

12.96% 12.97% 12.75%

7 Interest on Normative Loan for the year

340.60 355.72 364.65 720.37 708.68


9 Interest on Normative Loan for days in operation

55.06 355.72 93.91 449.63 710.68

7.7 It is humbly requested before Hon’ble Commission to kindly permit the

same.


46

8. Depreciation

8.1 The Hon’ble Commission in its Regulation MPERC (Terms and

Conditions for determination of Generation Tariff) Regulations, 2012

{RG-26 (II) of 2012} has specified the principles of charging depreciation

for the control period FY14 to FY16. Accordingly, MPPGCL has

determined the weighted average rate of depreciation applicable for the

Years FY 14 to FY16 as per MPERC Regulations, 2012, at the rates

specified in Appendix-II of these Regulations.

8.2 The effective rate of depreciation on annual basis for FY 14 to FY 16 is

tabulated as under:-

Table No.8.2.1

Financial Year Weighted Avg. Rate of

Depreciation (%)

1 FY 2013-14 5.10%

2 FY 2014-15 4.96%

3 FY 2015-16 5.07%

8.3 The Unit wise & year wise details of Capital Cost as capitalized in the

Audited Books of Accounts for FY 2013-14, FY 2014-15 & FY 2015-16 is

elaborated in the table below:-

Gross Block Details Table No.8.3.1 Rs. Crores

SSTPP PH-1

FY 2013-14 FY 2014-15 FY 2015-16



As on 31-3-2014

Deduction


Addition from CoD

to 31-3-2015

As on 31-03-2015

Adjustment

Addition As on 31-03-2016

Unit-1 3152.10 296.41 3448.51 -16.31 89.56 3521.76 21.96 3543.72 24.12 107.28 3675.11

Unit-2 362.55 14.91 377.46 -0.17 3244.19 3621.49 41.51 3662.99 34.99 120.57 3818.55

Total 3514.66 311.31 3825.97 -16.48 3333.75 7143.24 63.47 7206.71 59.11 227.85 7493.66

8.4 In reference table above, it is to mention that the deduction of Rs.-16.48

Crores made in FY 2014-15 was on account of Advance Entry Tax paid

during FY 2013-14 & capitalized in said year. The same is reconciled


47

during FY 2014-15 & the reversal of Capitalization amounting to Rs. -

16.48 Crores was made in the Books of Accounts of FY 2014-15.

Further, the Adjustment of Rs.59.11 Cores made in FY 2015-16 was

towards the capital works which were completed during FY 2013-14 &

FY 2014-15. However, the same were capitalized in the Audited Books of

Accounts for FY 2015-16.

8.5 The CoD of Unit No.1 was 01.02.2014 and that of Unit No.2 was




Accordingly the amounts of depreciation for Unit No.1 and 2 for the



8.6 Accordingly, the unit wise & year wise depreciation for the period FY

2013-14 to FY 2015-16 has been worked out and tabulated hereunder:-

Deprecation for the Period FY 2013-14 to FY 2015-16


Particulars

FY14 FY 15 FY 16

W.E.F. CoD of Unit # 1 (01.02.2014

to 31.03.2014)

Unit # 1 Unit # 2

Total

(Unit # 1 & 2)

W.E.F. 01.04.2014 to

31.03.2015


28.12.2014 to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 Opening Gross Block 3152.10 3448.51 3621.49 7069.99 7206.71

2 Asset Additions 296.41 111.52 41.51 153.03 227.85

3 Deletions/Adjustment 0.00 -16.31 0.00 -16.31 59.11

4 Closing Gross Block 3448.51 3543.72 3662.99 7206.71 7493.66

5 Average Gross Block 3300.31 3496.11 3642.24 7138.35 7350.19

6 Weighted. Avg. Rate of Dep. 5.10% 4.96% 5.07%

7 Amount of Depreciation for the year

168.48 173.31 180.55 353.86 372.88


9 Dep. for days in operation 27.23 173.31 46.50 219.81 372.88

W.E.F= with effect from

8.7 It is humbly requested before Hon’ble Commission to kindly permit the same.


48

9. O&M Expenses

9.1 The MPERC (Terms and Conditions for determination of Generation

Tariff) Regulations, 2012 {RG-26 (II) of 2012 }, clause No. 36.1, provides

as under:

The Operation and Maintenance expenses admissible to existing

thermal power stations comprise of employee cost, Repair &

Maintenance (R&M) cost and Administrative and General (A&G)

cost. These norms exclude Pension, Terminal Benefits and

Incentive, arrears to be paid to employees, taxes payable to the

Government and fees payable to MPERC. The Generating

Company shall claim the rent, rate & taxes payable to the

Government, cost of chemicals and consumables, fees to be paid to

MPERC and any arrears paid to employees separately as actual.

The claim of pension and Terminal Benefits shall be dealt as per

Regulation 26.5.

9.2 Further, the Regulations 2012 has also specified the rates for normative

O&M expenses applicable for new Thermal Generating Units

commissioned on or after 01.04.2012 for the period FY14 to FY16. These

rates are as tabulated hereunder:

Table No.9.2.1

O&M Norms for 600MW Unit

Rs. Lakhs/MW

FY 2013-14 12.95

FY 2014-15 13.98

FY 2015-16 15.09

9.3 The above mentioned norms have been considered while determining

the O&M expenses for Shri Singaji Thermal Power Project (SSTPP) Stage-

I, Units No.1 & 2 (2x600 MW) for the control period FY 2013-14 to FY

2015-16.


49

9.4 The CoD of Unit No.1 was 01.02.2014 and that of Unit No. 2 was




Accordingly the amounts of O&M Expenses for Unit No.1 and Unit No.2

for the period FY14 and FY15 have been calculated on pro-rata basis for


9.5 The Year wise O&M expenses being claimed by MPPGCL as per norms

are detailed in table below:

Table No.9.5.1

Particulars

FY14 FY 15 FY 16

W.E.F. CoD of Unit # 1 (01.02.2014

to 31.03.2014)

Unit # 1 Unit # 2

Total

(Unit # 1 & 2)

W.E.F. 01.04.2014

to 31.03.2015

W.E.F. CoD of Unit # 2 28.12.2014

to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 O&M Norms (Rs. Lakhs/MW) 12.95 13.98 13.98 13.98 15.09

2 Installed Capacity (MW) 600 600 600 1200 1200

3 O&M Charges (Rs. Crores) 77.70 83.88 83.88 167.76 181.08


5 O&M Charges for the period of operation during

the Year (Rs. Crores) 12.56 83.88 21.60 105.48 181.08


same.


50

10. Interest on Working Capital

10.1 Interest on working capital for FY14 to FY16 has been determined on the

Working Capital elements determined in pursuance with the norms as

approved by Hon’ble Commission in MPERC (Terms and Conditions for

determination of Generation Tariff) Regulations, 2012 {RG-26 (II) of 2012},

as elaborated below:-

Cost of coal for two months corresponding to the normative availability;

Cost of secondary fuel oil for two months corresponding to the normative availability.

Maintenance spares @20% of the normative O&M expenses;

Receivables equivalent to two months of capacity charges and energy charges for sale of electricity calculated on the Normative Annual Plant Availability Factor.

Operation and Maintenance expenses for one month.

10.2 As specified in proviso 27.1 of MPERC (Terms and Conditions for

determination of Generation Tariff) Regulations, 2012 {RG-26 (II) of

2012}, rate of interest on working capital for the years FY14 to FY16 has

been taken equal to Base Rate declared by State Bank of India Base Rate

as on 1st of April of that financial Year plus 3.5%.

10.3 The Base Rate of SBI effective from 07.11.2013 was 10.00%. The same has

been considered to remain effective as on CoD of Unit No.1.

Accordingly, the interest rate for FY 14 & FY 15 has been considered as

13.50% (10.00 + 03.50), similarly for FY-16, it was 13.35%.

10.4 Based on above norms, actual fuel cost {Coal & Oil (F.O.)} and the rate of

interest considered, Year wise working capital and interest on working

capital works out as under:


51

Table No.10.4.1 in Rs. Crores

Name of Power House

Coal Cost

2 Months

Oil Cost 2

months

Maint. Spare 20% of O&M

expenses

Recv. 2

months

O&M expense 1 month

Total Working Capital

Rate of Interest

%

Interest on WC

SSTPP Unit #1 FY-14 142.26 3.89 15.54 271.23 6.48 439.40 13.50% 59.32

SSTPP Unit #1 FY-15 190.11 3.23 16.78 325.61 6.99 542.71 13.50% 73.27

SSTPP Unit #2 FY-15 270.44 3.23 16.78 411.43 6.99 708.85 13.50% 95.70

SSTPP Unit #1&2 FY-16 401.70 3.81 36.22 676.30 15.09 1133.11 13.35% 151.27




No.2 were under operation for 365 days & 94 days respectively.

Accordingly the amount of Interest on Working capital (IoWC) for Unit

No.1 and Unit No.2 for the period FY14 and FY15 have been calculated

on pro-rata basis for respective days of operation only works as detailed

hereunder:-


Particulars

FY14 FY 15 FY 16


(01.02.2014 to

31.03.2014)

Unit # 1 Unit # 2

Total

(Unit # 1 & 2)

W.E.F. 01.04.2014

to 31.03.2015


28.12.2014 to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 Intt. on Working Capital 59.32 73.27 95.70 168.96 151.27


3 IoWC for the period of operation during the Year

9.59 73.27 24.64 97.91 151.27


same.


52

11. Cost of Secondary Fuel Oil

11.1 As per MPERC (Terms and Conditions for determination of Generation

Tariff) Regulations, 2012 {RG-26 (II) of 2012}, the cost of Secondary Fuel

Oil forms a part of the Annual Capacity (Fixed) Charges.

11.2 Accordingly, the expenses on Secondary Fuel Oil consumption during

FY14 to FY16 have been computed for the respective years,

corresponding to the normative Specific Fuel Oil Consumption (SFC) and

Normative Annual Plant Availability Factor, as per proviso 38 of MPERC

Regulations 2012.

11.3 The details of Secondary Fuel Oil ( Furnace Oil (FO) + Light Diesel Oil

(LDO)) as purchased in FY 2013-14 are elaborated in tables below:-

Table No.11.3.1

SSTPP Khandwa (FY 2013-14)

MONTH

FURNACE OIL L.D.O SECONDARY OIL

Quantity (KL)

RATE Rs./KL

Amount in

Rs. Lakhs

Quantity (KL)

RATE Rs./KL

Amount in

Rs. Lakhs

Quantity (KL)

RATE Rs./KL

Amount in

Rs. Lakhs

Apr-13 - - - - - - - - -

May-13 - - - 190.00 65229 123.94 190.00 65229 123.94

Jun-13 - - - 398.335 57746 230.02 398.34 57746 230.02

Jul-13 - - - 200.00 66826 133.65 200.00 66826 133.65

Aug-13 - - - 1459.66 63098 921.02 1459.66 63098 921.02

Sep-13 - - - 964.77 65483 631.76 965 65483 631.76

Oct-13 3794.01 53610 2033.98 1678.57 70947 1190.89 5472.58 58928 3224.87

Nov-13 1213.00 57979 703.29 792.00 75407 597.22 2005.00 64863 1300.51

Dec-13 154.50 56722 87.64 392.00 78492 307.69 546.50 72337 395.32

Jan-14 48.36 59410 28.73 414.00 76909 318.40 462.36 75078 347.13

Feb-14 3070.15 49982 1534.53 705.00 76385 538.51 3775.15 54913 2073.04

Mar-14 2170.50 49599 1076.55 1429.21 71305 1019.11 3599.71 58217 2095.66

Entry Tax

Incl.

Incl.

Incl.

TOTAL 10450.52 52291 5464.72 8623.55 69719 6012.22 19074.07 60170 11476.93


53


(LDO)) as purchased in FY 2014-15 are elaborated in table below:-

Table No.11.4.1


MONTH


Quantity (KL)

RATE Rs./KL

Amount in

Rs. Lakhs

Quantity (KL)

RATE Rs./KL

Amount in

Rs. Lakhs

Quantity (KL)

RATE Rs./KL

Amount in

Rs. Lakhs

Apr-14 - - - 301.46 69705 210.13 301.46 69705 210.13

May-14 2470.36 51904 1282.22 883.08 68753 607.14 3353.44 56341 1889.37

Jun-14 - - - 203.50 65709 133.72 203.50 65709 133.72

Jul-14 - - - 378.00 73042 276.10 378.00 73042 276.10

Aug-14 - - - - - - - - -

Sep-14 - - - 700.00 67413 471.893 700.00 67413 471.89

Oct-14 2115.10 50488 1067.87 904.91 66266 599.64 3020.01 55215 1667.51

Nov-14 - - - - - - - - -

Dec-14 2826.30 40634 1148.44 505.01 57258 289.16 3331.31 43154 1437.60

Jan-15 - - - 576.00 50141 288.81 576.00 50141 288.81

Feb-15 - - - 350.00 43772 153.20 350.00 43772 153.20

Mar-15 2938.41 33571 986.45 294.00 46206 135.85 3232.41 34720 1122.30

Entry Tax

Incl.

Incl.

Incl.

TOTAL 10350.17 43332 4484.98 5095.97 62121 3165.66 15446.14 49531 7650.63


54


(LDO)) as purchased in FY 2015-16 are elaborated in tables below:-

Table No.11.5.1



MONTH Quantity

(KL) RATE Rs./KL

Amount in

Rs. Lakhs

Quantity (KL)

RATE Rs./KL

Amount in

Rs. Lakhs

Quantity (KL)

RATE Rs./KL

Amount in

Rs. Lakhs

Apr-15 256.00 31319 80.18 98.00 44243 43.36 354.00 34897 123.53

May-15 - - - 284.00 46368 131.68 284.00 46368 131.68

Jun-15 - - - 288.987 49432 142.85 288.99 49432 142.85

Jul-15 - - - 214.00 47976 102.67 214.00 47976 102.67

Aug-15 - - - 164.00 48851 80.12 164.00 48851 80.12

Sep-15 2291.65 24885 570.28 1002.11 40275 403.60 3294 29567 973.88

Oct-15 - - - - - - - - - Nov-15 - - - - - - - - - Dec-15 - - - 605.50 38175 231.15 605.50 38175 231.15

Jan-16 - - - 229.00 34494 78.99 229.00 34494 78.99

Feb-16 - - - 293.50 31182 91.52 293.50 31182 91.52

Mar-16 - - - - - - - - - Entry Tax

Incl.

Incl.

Incl.

TOTAL 2547.65 25531 650.45 3179.10 41079 1305.94 5726.75 34162 1956.40




No.2 were under operation for 365 days & 94 days respectively.

Accordingly, the amount of Secondary Fuel Oil on Norms for Unit No.1

and Unit No.2 for the period FY14 and FY15 have been calculated on

pro-rata basis for respective days of operation only.

11.7 The Cost incurred on secondary fuel oil for the period FY14 to FY 16 has

been determined based on the weighted average Price of Secondary Fuel

Oil purchased during respective years.


55

11.8 The year wise cost of secondary fuel oil being claimed is shown in the

table below:-

Table No.11.8.1

SSTPP Unit #1, Khandwa FY 2013-14

Particulars Unit

MPPGCL

as per

Norms

Installed Capacity MW 600

NAPAF- Normative % 85.00%

Gross Gen. - Normative (Annual) MU 4467.60

Sp. Oil Consumption - Normative ml/KWh 1.00

Quantity of Oil required (Annual) KL 4468

Wt. Avg. Price of Sec. fuel Rs. 60170.3

Cost of Secondary Fuel Oil (Annual) Rs. Crores 26.88

Cost of Secondary Fuel Oil (59 Days) Rs. Crores 4.35

Table No.11.8.2


Particulars Unit

MPPGCL

as per Norms








Table No.11.8.3


Particulars Unit

MPPGCL

as per

Norms








Cost of Secondary Fuel Oil (94 Days) Rs. Crores 5.70


56

Table No.11.8.4

SSTPP Unit #1&2, Khandwa FY 2015-16

Particulars Unit

MPPGCL

as per

Norms









expenses towards Secondary Fuel Oil.


57

12. Energy (Variable) Charges

12.1 The Energy Charges (Variable Charges) for the control period FY 2013-

14 to FY 2015-16 has already been billed in accordance to proviso 41 of

MPERC (Terms & Condition for determination of Generation Tariff)

(Revision-II) Regulation, 2012. Therefore, no truing up of Energy Charges

has been considered in this revised petition.


58

13. Other Charges

13.1 Other Charges comprises of Rent, Rates & Taxes, MPERC Fees, Entry Tax

on R&M, Water Charges, Cost of Chemical, Cost of Consumable,

Publication Charges & SLDC charges. Water Charges, which are payable

to Government, have been paid based on rates specified by GoMP. Rent,

Rates and Taxes for power stations & Common expenses has been taken

on actuals. SLDC charges have claimed in accordance with Regulation

39, allocated to Thermal Power Stations on MW capacity basis.

13.2 As per the proviso 26.5 of MPERC Regulations 2012, the expenditure

towards actual Pension & Terminal benefits shall be claimed by

Transmission Licensee. Accordingly, MPPGCL had not claimed these

expenses in this revised petition.

13.3 The other expenses in respect of Shri Singaji Thermal Power Project

(SSTPP) Stage-I, Units No. 1 & 2, for the period FY 14 to FY 16 have been

claimed in this revised petition as per Audited Books of Accounts for FY

2015-16.

Table No. 13.3.1. in Rs. Crores

Particulars

FY14 FY 15 FY 16


(01.02.2014 to

31.03.2014)

Unit # 1 Unit # 2

Total

(Unit # 1 & 2)

W.E.F. 01.04.2014

to 31.03.2015


28.12.2014 to

31.03.2015

W.E.F. 01.04.2015

to 31.03.2016

1 MPERC Fees 0.01 0.18 0.00 0.18 0.36

2 Water Charges 1.49 4.83 1.24 6.07 29.12


4 SLDC Charges 0.02 0.12 0.03 0.15 0.12

5 Rent, Rate & Taxes 0.05 0.12 0.03 0.15 0.13

6 Entry Tax 0.00 0.00 0.00 0.00 0.13

7 Common Exp. 0.00 1.03 0.27 1.30 0.00

8 Total 1.91 7.41 1.86 9.27 33.53


same.


59

14. Non-Tariff Income

14.1 The Hon’ble Commission in (Terms and conditions for determination of

Generation Tariff) (Revision-II) Regulations, 2012 has prescribed for Non-

Tariff Income, as any income being incidental to the business of the

Generating Company derived from sources other than income from sale

of energy shall constitute the Non Tariff Income.

14.2 The Non Tariff Income of SSTPP PH-1 Khandwa as captured in the

Audited books of Accounts for FY 2013-14, FY 2014-15, & FY 2015-16 are

detailed in the table below:-


Financial year Amount

FY 2013-14 17.33

FY 2014-15 11.32

FY 2015-16 26.39

14.3 The same may kindly be considered by Hon’ble Commission.


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15. Fixed Charges and Other Charges.

15.1 The cost elements computed for the period FY14 to FY16, in pursuance

with MPERC Regulations-2012, as detailed in foregoing chapters, are

tabulated below:-

FY 2013-14 to FY 2015-16


Particulars

FY14 FY 15 FY 16

W.E.F. COD of Unit # 1

(01.02.2014 to 31.03.2014)

Unit # 1 Unit # 2 Total (Unit # 1 & 2)

W.E.F. 01.04.2014

to 31.03.2015

W.E.F. COD of Unit # 2 28.12.2014

to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 Return on Equity 104.37 107.46 101.79 209.25 210.80

2 Depreciation 168.48 173.31 180.55 353.86 372.88

3 Interest & Finance Charges 340.60 355.72 364.65 720.37 708.68

4 O&M Expenses 77.70 83.88 83.88 167.76 181.08

5 Intt. On Working Capital 59.32 73.27 95.70 168.96 151.27

6 Secondary Oil Expenses 23.36 19.36 19.36 38.72 22.88

7 Annual Fixed Charges 773.83 812.99 845.94 1658.93 1647.58

8 No. of days in operation 59 365 94 366

9 Proportionate Fixed Charges. 125.08 812.99 217.86 1030.85 1647.58

10 Non Tariff Income -17.33 -9.00 -2.32 -11.32 -26.39

11 Net Fixed Charges 107.75 803.99 215.54 1019.53 1621.19

15.2 Apart from above, other charges are claimed on actual basis for FY 14 to

FY 16 as per Audited Books of Accounts for respective years as tabulated

hereunder:-


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FY 2013-14 to FY 2015-16


Particulars

FY14 FY 15 FY 16

W.E.F. CoD of Unit # 1 (01.02.2014

to 31.03.2014)

Unit # 1 Unit # 2

Total

(Unit # 1 & 2)

W.E.F. 01.04.2014

to 31.03.2015

W.E.F. CoD of Unit # 2 28.12.2014

to 31.03.2015

W.E.F. 01.04.2015 to

31.03.2016

1 MPERC Fees 0.01 0.18 0.00 0.18 0.36

2 Water Charges 1.49 4.83 1.24 6.07 29.12


4 SLDC Charges 0.02 0.12 0.03 0.15 0.12

5 Rent, Rate & Taxes 0.05 0.12 0.03 0.15 0.13

6 Entry Tax 0.00 0.00 0.00 0.00 0.13

7 Common Exp. 0.00 1.03 0.27 1.30 0.00

Total 1.91 7.41 1.86 9.27 33.53

15.3 It is humbly requested before the Hon’ble Commission to kindly permit

the same.

Revised Petition for Approval of Final Generation Tariff ...

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