NATIONAL THERMAL POWER CORPORATION LIMITED Vs. UTTAR PRADESH POWER CORPORATION LIMITED UPPCL
LAWS(ET)-2005-7-8
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on July 07,2005

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) THE petitioner has filed the present application for "in-principle" approval to the renovation and modernisation scheme indicated in the petition for Auraiya Gas Power Station, tariff application for which would be filed after completion of renovation and modernisation works. It is further prayed that the actual expenditure incurred on renovation and modernisation works, should be considered for determination of tariff for the relevant years by the Commission.
(2.) The petitioner has submitted that the Auraiya GPS with 4 gas turbines and 2 steam turbines was declared under commercial operation during December 1990. The gas turbines will be completing 15 years of operation, the prescribed useful life for the purpose of depreciation under the regulations notified by the Commission. It is further stated that as per the recommendations of OEM, critical components of the hot gas path such as turbine blades, rotor, vanes, etc need to be renovated after one lakh equivalent operating hours. The petitioner has stated that during inspections of the gas turbines, most of critical equipment of the hot gas path was found to be beyond refurbishment and, therefore, needed to be replaced. Therefore, according to the petitioner, renovation and modernisation of Auraiya GPS has become essential. The petitioner has accordingly filed the present petition for in-principle approval to the renovation and modernisation scheme prepared by it which is likely to extend the life of the station for a further period of 8 to 10 years to enable the petitioner to continue the supply of power at the present performance level. The R&M scheme proposed by the petitioner involves expenditure at an estimated cost of Rs. 416.27 Crore as on March 2004 price level, which includes IDC of Rs. 36.53 Crore, and contingency of Rs. 18.08 Crore. In addition capital spares worth Rs. 98.20 Crore are also proposed to be procured. The capital expenditure on R&M is proposed to be incurred over a period of 5 years starting from 2003-04 and completing in year 2008-09. The petitioner during the hearing on 23.6.2005 has submitted that they are seeking "in principle" approval of the Commission to proceed with the R&M of the station and are not seeking the approval of the cost of R&M expenditure.
(3.) THE Commission found that there is no explicit consent of the beneficiary respondents for undertaking R&M. THE Commission also noted that the existing allocation for the supply of gas is sufficient to run the station at around 70% PLF. Further, the R&M scheme involves not only replacement of hot gas path component and gas turbine but also installation of new system like evaporating cooling system and RLA study of steam turbine and WHR Boiler and purchase of capital spares worth Rs. 98.20 Crore over and above the R&M scheme of Rs. 416.27 Crore.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.