NEYVELI LIGNITE CORPORATION LTD Vs. TAMIL NADU ELECTRICITY BOARD
CENTRAL ELECTRICITY REGULATORY COMMISSION
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(1.) THE petitioner owns, among others, THErmal Power Station-I (Expansion), (TPS-I Expansion) comprising two units of 210 MW each; Unit I was declared under commercial operation on 9.5.2003 and Unit II on 5.9.2003. Thus, the station as a whole was declared under commercial operation on 5.9.2003. THE petitioner had made an application (petition No. 105/2002) for approval of tariff from 9.5.2003 to 31.3.2004 based on the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2001. THE tariff was approved by order dated 7.4.2005.
(2.) In petition No. 105/2002, the petitioner had sought approval of tariff based on capital cost of Rs. 1390.33 crore with following break up of debt and equity:
It was noticed that the petitioner had recovered an amount of Rs. 91.19 crore as liquidated damages. Therefore, capital cost of Rs. 1299.14 crore, after adjustment of liquidated damages of Rs. 91.19 crore was considered in the order dated 7.4.2005, for tariff purposes. While approving tariff, the Commission had considered exchange rate of Rs. 50.59/Euro as applicable on the date of commercial operation of the generating station, that is, 5.9.2003 and in this manner arrived at loan of Rs. 500.60 crore. Keeping the capital cost at Rs. 1390.93 crore, and after adjusting loan of Rs. 500.60 crore, the balance was considered as equity.
(3.) THE petitioner has submitted that equity actually employed is Rs. 962.38 crore and the loan component of capital cost works out to Rs. 500.60 crore @ Rs. 50.59/Euro against a total loan of 98.77 million Euro contracted by the petitioner. Thus, according to the petitioner the capital cost as on 5.9.2003 works out to Rs. 1462.98 crore as detailed below:
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