- (1.) TORRENT Power Generation Ltd had filed the main petition seeking `in principle' approval of the project capital cost and financing plan in respect of its proposed 1100 MW SUGEN Combined Cycle Power Project in the State of Gujarat in terms of second proviso to Regulation 17 of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 as amended (hereinafter referred to as the tariff regulations, 2004). The original petitioner had claimed the capital cost of the project at US $ 349.58 million plus Rs. 1508.30 crore including IDC and Financing Charges (FC) of Rs. 194.40 crore and Working Capital Margin of Rs. 49.50 crore. The Commission by its order dated 22.8.2006 had accorded 'in-principle' approval for the project capital cost of US $ 339.436 million plus Rs. 1448.43 crore including IDC and FC and excluding WCM, subject to certain conditions. The project capital cost as approved included the cost of initial spares of Rs. 111.86 crore (comprising US $ 20.426 million at the exchange rate of Rs. 45.42 per US $ and Rs. 19.08 crore) at the permissible rate of 4% of the original project cost (hard cost) as per the provisions of Regulation 17 of the tariff regulations, 2004 against the projected cost of Rs. 167.41 crore (comprising US $ 30.57 million at the exchange rate of Rs. 45.42 per US $ and Rs. 28.56 crore) which was 5.87% of the hard cost of the project.
(2.) The High Court of Gujarat by its order dated 12.7.2006 in Company Petition No. 69/2006 had approved merger of Torrent Power Generation Limited (the petitioner in the original petition), Torrent Power AEC Limited, and Torrent Power Limited with Torrent Power Limited. The effect of the merger is that Torrent Power Limited itself is the distribution licensee for the cities of Ahmedabad/Gandhinagar and Surat. The present application has been made by Torrent Power Limited who has succeeded Torrent Power Generation Ltd, the original petitioner. The petitioner has filed this interlocutory application for reconsideration of the spares cost earlier considered and to allow cost of spares of Rs. 167.41 crore and review of the norms of spares, in terms of the following prayers: (i) Reconsider the allowance of spares cost and allow in principle the cost of spares of Rs. 167.41 crore and the capital cost of Rs. 3043 crore. (ii) Modify the order dated 22.8.2006 passed in Petition No. 154/2005 to accept the `in principle' cost of the project at Rs. 3043 crore. (iii) Review the norm of spares and allow higher amount of initial spares for new efficient advance class technology to be used by the Petitioner and in future by other developers.
(3.) THE Commission by order dated 5.3.2007 directed the petitioner to furnish the details of initial spares along with recommendations of the OEM supplier and also the copy of agreement with the OEM supplier duly supported by the documentary evidence, where applicable. THE petitioner submitted the details vide affidavit dated 28.4.2007. THE petitioner further submitted the following documents vide affidavit dated 12.6.2007 in response to the letter dated 23.5.2007: (i) Copy of the Agreement with EPC Contractor. (ii) Copy of Index to the " Technical Specification" of the contract wherein 'Schedule of Spares' is mentioned at Section " F6 ". (iii) Copy of "Schedule F6" to the contract, containing the details of the spares, along with quantity.;