NATIONAL THERMAL POWER CORPORATION LIMITED Vs. HARYANA VIDYUT PRASARAN NIGAM LTD AND
LAWS(ET)-2006-10-4
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on October 04,2006

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) THIS review petition has been filed by the petitioner, National Thermal Power Corporation Ltd, a generating company, for review of order dated 9.5.2006, in Petition No. 156/2004, whereby the Commission determined tariff in respect of Faridabad GPS (hereinafter "the generating station), for the period 1.4.2004 to 31.3.2009.
(2.) The petitioner has submitted that there are certain fundamental errors in the said order dated 9.5.2006 and accordingly has sought review thereof. According to the petitioner, the order needs to be reviewed on account of the following errors: (a) Computation of Interest on Loan Capital, and (b) Decapitalisation of liabilities-Impact adjustment for period prior to 1.4.2004. Computation of Interest on Loan Capital The petitioner has stated that in respect of the generating station, outstanding loan as on 1.4.2004 was Rs. 47045 lakh, after taking into account the actual cumulative repayment prior to that date. The Commission has, however, considered outstanding loan as Rs. 46133 lakh. According to the petitioner, the difference of Rs. 912 lakh in the cumulative repayment is on account of inequitable methodology adopted by the Commission in determining the loan repayment during the tariff period 2001-04 and has prayed that outstanding loan as on that date need to be taken as Rs.47045 lakh for computation of tariff.
(3.) THE annual repayment amount for the tariff period 2001-04 worked out as per the methodology followed by the Commission in all cases for that tariff period, is given hereunder: Actual repayment during the year or repayment as worked out as per the following formula: Actual repayment during the year X normative net loan at the beginning of the year/actual net loan at the beginning of the year, whichever is higher.;


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