NATIONAL THERMAL POWER CORPORATION LIMITED Vs. MADHYA PRADESH POWER TRADING COMPANY LTD
CENTRAL ELECTRICITY REGULATORY COMMISSION
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(1.) THIS application has been made for review of order dated 29.6.2006, passed by the Commission in Petition No. 128/2004, determining the tariff in respect of Vindhyachal STPS stage-I (hereinafter "the generating station), for the period 1.4.2004 to 31.3.2009.
(2.) The petitioner has contended that there are certain fundamental errors in the said order dated 29.6.2006 and accordingly has sought review. According to the petitioner the order needs to be reviewed on account of the errors under following heads:
(a) Computation of interest on loan capital
(b) Impact of de-capitalization of assets on cumulative re-payment of loan.
(c) Decapitalisation of liabilities-Impact adjustment for prior period.
(d) Recovery of publication expenditure 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. 18707 lakh, after taking into account the actual cumulative repayment of Rs. 54247 lakh prior to that date. The Commission has, however, considered outstanding loan as Rs. 4496 lakh after accounting for the normative cumulative repayment of Rs 68458 lakh. According to the petitioner, the difference of Rs.14211 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. 18707 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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