|
4.
Fixed Charges
The station comprises of 2 units of 210 MW
each, the first unit was commissioned in September 1996 and the
second unit in September 1997. The project cost as admitted by
the petitioner in 2008-09 was Rs.1393.70 Crores. In the year
2009-10 assets worth Rs 4.70Crores were capitalized during the
year. An amount of Rs.2.35 Crores has been considered for this
year, remaining amount would be considered in next year.(Details
attached in depreciation schedule). Also remaining
capitalization of the amount Rs.0.12 Crores of the year 2008-09
has been considered in this year. Hence in total, additional
capitalization of Rs.2.47 Crores has been considered in this
year. Despite the total addition has been from equity, the
petitioner following the norms has applied normative debt equity
ratio for calculating the additional debt and equity.
The details of funding the project cost are
given in Table 16 below:
Table 16:
Capital Cost – Funding
|
S.No. |
Funding Source |
Amount
(Rs.
Crores) |
|
Phase 1: 2x210 MW |
|
1 |
Project cost at the start of 2009-10 |
1393.70 |
|
2 |
Additional Capitalization in 2009-10 |
2.47 |
|
3 |
Total Project Cost |
1396.17 |
|
5 |
Outstanding Debt Component at the start of 2008-09
|
638.90 |
|
6 |
Debt Component for additional capitalization |
1.729 |
|
7 |
Total Debt |
640.63 |
|
8 |
Equity Component at the start of 2009-10 |
138.036 |
|
9 |
Equity Component of additional capitalization
|
0.741 |
|
10 |
Total Equity |
138.77 |
The
Petitioner regrets to inform the Hon’ble Commission that the
expansion plans has been stalled as of now.
|
The fixed costs include:
The details are submitted below for
consideration of Honourable Commission
The loan outstanding as on 31.03.2009 is Rs
638.90 Crores. The interest on the outstanding loan is Rs..83.06
Crores. As per the terms and conditions the State Government
loan is repayable in 15 equal installments. But the Petitioner
could not meet the repayment obligation due to insufficient
funds on account of non-payment of electricity charges by the
Jharkhand State Electricity Board (JSEB).
Table 17:
Loan Outstanding and Interest Charges (Rs.Crores)
|
S.No |
Name of the Institution |
Balance at the beginning of the year |
Loan received during the year |
Repayment During the year |
Balance O/S at the end of the year |
Rate of Interest
% |
Interest for the year |
|
|
2005-06 |
|
|
|
|
|
|
|
1 |
Bihar Govt. Loan |
608.90 |
- |
- |
608.90 |
13 |
79.16 |
|
2 |
Jharkhand Govt. Loan |
30.00 |
19.00 |
- |
49.00 |
13.25 |
6.49 |
|
|
Total 2005-06 |
638.90 |
19.00 |
- |
657.90 |
|
85.65 |
|
|
2006-07 |
|
|
|
|
|
|
|
1 |
Bihar Govt. Loan |
608.90 |
|
- |
608.90 |
13 |
79.16 |
|
2 |
Jharkhand Govt. Loan |
49.00 |
8.00 |
- |
57.00 |
13.25 |
7.55 |
|
|
Total 2006-07 |
657.90 |
8.00 |
- |
665.90 |
|
86.71 |
|
|
2007-08 |
|
|
|
|
|
|
|
1 |
Bihar Govt. Loan |
608.90 |
|
- |
608.90 |
13 |
79.16 |
|
2 |
Jharkhand Govt. Loan |
30.00 |
|
|
30.00 |
13 |
3.9 |
|
|
Total 2007-08 |
638.90 |
|
|
638.90 |
|
83.06 |
|
|
2008-09 |
|
|
|
|
|
|
|
1 |
Bihar Govt. Loan |
608.90 |
|
- |
608.90 |
13 |
79.16 |
|
2 |
Jharkhand Govt. Loan |
30.00 |
|
|
30.00 |
13 |
3.9 |
|
|
Total 2008-09 |
638.90 |
|
|
638.90 |
|
83.06 |
|
|
|
|
|
|
2009-10 |
|
|
|
|
|
|
|
|
Bihar Govt. Loan |
608.90 |
|
- |
608.90 |
13 |
79.16 |
|
|
Jharkhand Govt. Loan |
30.00 |
|
|
30.00 |
13 |
3.9 |
|
|
Total 2009-10 |
638.90 |
|
|
638.90 |
|
83.06 |
|
The Petitioner’s inability to repay loan is
due to non-recovery of dues from JSEB. Therefore the Petitioner
requests the Honourable Commission to approve the interest
charges for 2009-10.
Also, an additional debt of Rs.0.74 Crores on
account of additional capitalization has been treated as
normative debt. This amount would be repaid in 15 installments.
The first repayment would start from 2010. The weighted average
of interest rated for the petitioner is 13% and the same % has
been applied for calculating the interest.
Table 18: Loan Outstanding and Interest Charges for 2009-10 (Rs.Crores)
|
S.No |
Name
of the Institution |
Balance
at the beginning of the year |
Loan
received during the year |
Repayment During the year |
Balance
O/S at the end of the year |
Rate of
Interest
% |
Interest
for the year |
|
1 |
Bihar Govt. Loan |
608.90 |
|
- |
608.90 |
13 |
79.16 |
|
2 |
Jharkhand Govt. Loan |
30.00 |
- |
- |
30.00 |
13 |
3.9 |
|
3 |
Normative Debt on account of |
0.74 |
|
|
0.74 |
13 |
0.09 |
|
4 |
Total 2009-10 |
639.64 |
- |
- |
639.64 |
|
83.15 |
|
The Petitioner has calculated the depreciation
on its fixed assets on historical capital cost of the asset.
Depreciation is calculated annually as per the straight line
method as per rates of depreciation prescribed in the schedule
attached at Appendix-II of the JSERC (Terms and Conditions for
Determination of Thermal Generation Tariff) Regulations, 2004,
and depreciation cost has been arrived at accordingly.
Table 19a: Depreciation for the Plant (Rs. Lakhs)
|
S.No. |
Asset
Classification |
Asset at
begining of 2008-09 (Rs.Lakhs) |
Asset
Capitalized in 2008-09 |
Asset
Retirement
if any |
Asset at
the beginning of 2009-10
(Rs.Lakhs) |
Rate of
Deprecitation (%) |
Depreciation Amount (Rs.Lakhs) |
|
1 |
Land |
3864.76 |
0.00 |
|
3864.76 |
0.00% |
0 |
|
2 |
Buildings |
|
|
|
|
|
|
|
(a) |
Factory |
4210.34 |
0.00 |
|
4210.34 |
3.60% |
151.57 |
|
(b) |
Residential |
2282.46 |
0.00 |
|
2282.46 |
1.80% |
41.08 |
|
(c) |
Non-Residential |
1761.07 |
0.00 |
|
1761.07 |
1.80% |
31.70 |
|
|
|
8253.87 |
|
|
8253.87 |
|
0.00 |
|
3 |
Roads |
|
|
|
0.00 |
1.80% |
0.00 |
|
(a) |
Pucca Road |
1776.79 |
0.00 |
|
1776.79 |
1.80% |
31.98 |
|
(b) |
Boundary Walls & Others |
223.03 |
0.00 |
|
223.03 |
1.80% |
4.01 |
|
|
|
1999.82 |
|
|
1999.82 |
|
|
|
4 |
Plant and Machinery |
|
|
|
0.00 |
|
0.00 |
|
(a) |
Plant & Machinery |
107232.27 |
0.00 |
|
107232.27 |
3.60% |
3860.36 |
|
(b) |
D.G.
Set |
216.16 |
0.00 |
|
216.16 |
6.00% |
12.97 |
|
(c) |
Refrigeration |
2.41 |
0.00 |
|
2.41 |
6.00% |
0.14 |
|
(d) |
Internal Wiring |
0.11 |
0.00 |
|
0.11 |
6.00% |
0.01 |
|
(e) |
Overhead Lines |
4890.78 |
0.00 |
|
4890.78 |
3.60% |
176.07 |
|
(f) |
Hydraulic Works |
7924.36 |
0.00 |
|
7924.36 |
1.80% |
142.64 |
|
(g) |
Tools and Tackles |
41.13 |
0.00 |
|
41.13 |
3.60% |
1.48 |
|
(h) |
Miscellaneous Equipment |
8.86 |
0.00 |
|
8.86 |
6.00% |
0.53 |
|
(i) |
Air
Conditioners |
32.84 |
0.99 |
|
33.83 |
18.00% |
5.91 |
|
(j) |
Cycle |
0.02 |
0.00 |
|
0.02 |
6.00% |
0.00 |
|
(k) |
Dozer |
282.25 |
0.00 |
|
282.25 |
18.00% |
50.81 |
|
(l) |
Electronic Weigh Bridge |
|
3.90 |
|
3.90 |
6.00% |
0.00 |
|
(m) |
Computer |
26.72 |
2.12 |
|
28.84 |
6.00% |
1.60 |
|
5 |
Furniture & Fixtures |
|
|
|
|
|
|
|
(a) |
Office Equipment** |
16.14 |
|
|
23.80 |
6.00% |
0.97 |
|
(b) |
Furniture** |
45.57 |
|
|
54.96 |
6.00% |
2.73 |
|
|
Total (A) |
61.71 |
673704.06 |
|
78.76 |
|
3.70 |
|
|
Grand Total |
130973.31 |
|
|
130997.37 |
|
4516.84 |
|
As per
the JSERC regulations, the residual life of an asset is
considered as 10% and depreciation is allowed upto a maximum of
90% of the historical capital cost of the asset. Therefore,
depreciation is not calculated on the assets where the
cumulative depreciation has reached 90% of the historical cost
of such assets.
Table 19 b : Depreciation for Head Office (Rs.
Lakhs)
|
S.No. |
Asset
Classification |
Asset at
begining of 2008-09 (Rs.Lakhs) |
Asset
Capitalized in 2008-09
(Rs.Lakhs) |
Asset
Retirement if any
(Rs, Lakhs) |
Asset at the
beginning of 2009-10
(Rs. Lakhs) |
Rate of
Deprecitation (%) |
Depreciation
Amount (Rs.Lakhs) |
|
1 |
Furniture & Fixtures |
38.82 |
7.66 |
|
46.48 |
6.00% |
2.79 |
|
2 |
Close Circuit Camera |
5.78 |
9.39 |
|
15.17 |
6.00% |
0.91 |
|
3 |
Photocopy Machine |
3.86 |
|
|
3.86 |
6.00% |
0.23 |
|
4 |
Refrigerator |
0.64 |
|
|
0.64 |
6.00% |
0.04 |
|
5 |
Miscellaneous Equipment |
5.91 |
|
|
5.91 |
6.00% |
0.35 |
|
6 |
Telephone & Mobile Sets |
7.59 |
|
|
7.59 |
6.00% |
0.46 |
|
7 |
EPBX System |
5.69 |
|
|
5.69 |
6.00% |
0.34 |
|
8 |
Fax Machine |
0.61 |
|
|
0.61 |
6.00% |
0.04 |
|
9 |
Typewriter |
0.52 |
|
|
0.52 |
6.00% |
0.03 |
|
10 |
Television |
1.81 |
|
|
1.81 |
6.00% |
0.11 |
|
11 |
Computer & Accessories |
16.18 |
|
|
16.18 |
6.00% |
0.97 |
|
12 |
Generator |
2.57 |
|
|
2.57 |
6.00% |
0.15 |
|
13 |
Air Conditioner & Coolers |
16.73 |
|
|
16.73 |
18.00% |
3.01 |
|
14 |
Car |
14.15 |
|
|
14.15 |
18.00% |
2.55 |
|
15 |
Cycle |
0.02 |
|
|
0.02 |
6.00% |
0.00 |
|
16 |
V.Set |
0.57 |
|
|
0.57 |
6.00% |
0.03 |
|
17 |
Capital Work in Progress |
470.00 |
0.00 |
|
470.00 |
0.00% |
0.00 |
|
|
Total (B) |
591.44 |
17.05 |
|
608.49 |
|
12.01 |
Table 19 c : Depreciation on Additional
Capitalization (Rs. Lakhs)
|
ACCOUNT
HEAD |
Budgetl
2009-2010 |
Depreciation Rate (%) |
Depreciation
(2009-10) |
|
Plant & Machinery |
0.00 |
3.6% |
0.00 |
|
New EPABX |
0.00 |
6% |
0.00 |
|
New Dozer |
210.00 |
18% |
37.80 |
|
Air Compressor for TH |
0.00 |
|
0.00 |
|
New Engine for Dozer |
0.00 |
18% |
0.00 |
|
Pay Loader |
0.00 |
6% |
0.00 |
|
Electronic Weigh
Bridge |
0.00 |
6% |
0.00 |
|
Airconditioner |
10.00 |
18% |
- |
|
Air Compressor for
CHP |
20.00 |
6% |
1.20 |
|
Lift |
10.00 |
6% |
0.60 |
|
High Mast towers |
20.00 |
6% |
1.20 |
|
Furniture & Fixtures |
10.00 |
6% |
0.60 |
|
Computer & other
office equip |
10.00 |
6% |
0.60 |
|
Office Equipment |
10.00 |
6% |
0.60 |
|
Land
|
0.00 |
- |
- |
|
Ambassdor car/Jeep |
- |
18% |
- |
|
Mobile Sets |
- |
|
- |
|
Tools & Tackles |
- |
|
- |
|
Miscellaneous
Equipment |
- |
|
- |
|
V-Sat |
- |
|
- |
|
Dust Suppression
system for C-5A at SCH |
20.00 |
6% |
1.20 |
|
Dust Suppression
system for TH system |
40.00 |
6% |
2.40 |
|
ILMS for C-4A/B |
25.00 |
6% |
1.50 |
|
Modified and improved
VF |
35.00 |
6% |
2.10 |
|
Magnetic Separator
and Metal Detector in CHP |
50.00 |
6% |
3.00 |
|
Total (A) |
470.00 |
|
52.80 |
|
Depreciation to be
taken into tariff ( Prorata basis-assuming mid year
as ref point and hence dividing the total
depreciation by 2) |
|
|
26.40 |
Table 19: Total Depreciation (Rs.Crores)
|
S.No |
Item |
Depreciation
Amount (Rs.Cr.) |
|
1.
|
Deprectaion for
Plant |
45.17 |
|
2.
|
Depreciation for
HO |
0.12 |
|
3.
|
Depreciation for
Additional Capitalization |
0.26 |
|
Total |
45.55 |
It is requested that the Honourable Commission
may kindly approve the depreciation at Rs. 45.55
Crores for the year 2009-10.
|
|
|
4.5 Operation and Maintenance (O&M)
Expenses
The O&M expenses include expenditure incurred
in the operation and maintenance of the generating station,
including employee cost, repairs and maintenance, consumption of
stores and spares, water charges, ash disposal, pollution
control cess, insurance and other administrative and general
expenses of the Petitioner corporate office at Ranchi. The
maintenance expenditure has increased substantially due to the
age of the plant and numerous outages experienced. Petitioner
has projected Rs.124.09 Cr as O&M expense.
Table 20: 2009-10 O&M Expenses
|
Items |
(Rs. Crores) |
|
Employee Cost |
28.20 |
|
R&M
Expenses |
18.25 |
|
A&G
Expenses |
16.09 |
|
O&M
including Capital Expenditure |
61.55 |
|
b |
124.10 |
|
|
The major components of the O&M
expenses have been explained below:
a) Employee cost:
The actual employee cost for FY 2008-09 was Rs.15.32crores
The employee cost increases continuously on account of
inflation, increment in salaries and wages,
honorarium/incentives and increased demand for trained
manpower on account of increased development in
infrastructure sectors. For the year 2009-10 Petitioner
projects employee expense of Rs.28.20 Crores. This increase
is largely due to the expected impact of VI pay revision on
the salary part. As it has been considered to disburse
arrears in two tranches, 60% of the total arrears have been
taken in this year amounting to Rs.6.50 Crores remaining 40%
shall be taken in FY 2010-11.
b) Repairs and Maintenance (R&M):
The Petitioner has to carry out regular repairs and
maintenance of its generating plant to ensure maximum
generation by optimum utilization of generating assets. The
Petitioner undertakes preventive maintenance activities for
all critical assets in addition to breakdown maintenance.
The actual R&M costs in the year 2008-09 were Rs.11 25
Crores. For the FY 10 petitioner requests the Honorable
Commission to approve Rs.18.24 Crores inclusive of R&M
expenditure and other maintenance expenditures to keep its
plant running. This increase is due to increased expenditure
on Ash disposal, which is expected to cost Rs.7.10 Crores.
c) Administrative and General (A&G) Expenses:
A&G expenditure represents cost of general administration
such as rent, rates, taxes, legal expenses, professional
fees, conveyance and traveling expenses, printing and
stationery, bank charges, etc. For 2009-10 ,the Petitioner
projects an expense of Rs.16.09 Crores This increase is
largely due to security enhancement as salary to CISF is
expected to be at Rs.8.00 Crores which is approx 50% of
total expense.
d) O&M Expenses:
The petitioner projects an expense of Rs. 14.96 Crores on
account of Annual Maintenance Contract and Other Operation
and Maintenance Contract. This increase is largely due to
NTPC operational assistance which would cost around Rs.3.50
Crores.
e) Capital Maintenance:
The year wise details of capital maintenance expenses and
the amounts proposed to be charged to revenue account are
detailed in the table below:
|
Table 21:
Year wise Capital Maintenance Expenditure (Rs. Lakhs)
|
|
|
Year |
Amount |
Proposed to be charged to Revenue in 5 annual
installments |
|
|
|
2002-03 |
2003-04 |
2004-05 |
2005-06 |
2006-07 |
2007-08 |
2008-09 |
2009-10 |
|
2002-03 |
886.45 |
177.29 |
177.29 |
177.29 |
177.29 |
177.29 |
|
|
|
|
2003-04 |
45.46 |
|
9.09 |
9.09 |
9.09 |
9.09 |
9.09 |
|
|
|
2004-05 |
1209.48 |
|
- |
241.90 |
241.90 |
241.90 |
241.90 |
241.9 |
|
|
2005-06 |
3267.00 |
|
- |
- |
653.40 |
653.40 |
653.40 |
653.4 |
653.4 |
|
2006-07 |
2856.29 |
|
- |
- |
- |
571.26 |
571.26 |
571.26 |
571.26 |
|
2007-08 |
5519.20 |
|
- |
- |
- |
- |
1103.84 |
1103.84 |
1103.84 |
|
2008-09 |
6134.86 |
|
|
|
|
|
|
1226.97 |
1226.97 |
|
2009-10 |
5520 |
|
|
|
|
|
|
|
1104 |
|
Total |
|
177.29 |
186.38 |
428.28 |
1081.68 |
1652.94 |
2597.49 |
3797.37 |
4659.47 |
|
The amount
proposed to be charged during 2009-10 is Rs.46.59 crores.
Interest on
Working Capital:
In accordance with clause (v) of
Regulation 21 of the JSERC (Terms and Conditions for
Determination of Thermal Generation Tariff) Regulations, 2004,
working capital in case of coal based fired generation stations
shall cover:
-
Cost of coal for 1½ months for
pithead generating stations and 2 months for non-pithead
generating stations, corresponding to the target availability.
-
One month stock of secondary fuel
oil
-
O&M
expenses for 1 month
-
Maintenance spares @ 1% of plant
and equipment cost as on 01.04.2004 or the date of commercial
operation, whichever is later; and
-
Receivables
equivalent to 2 months of fixed and variable charges for sale
of electricity calculated on target availability
The interest on working capital worked for the
year 2008-09 was Rs.15.19 Crores and for the year 2009-10,
petitioner expects it to be at Rs.18.04 Crores as detailed in
the Table 22 below:
Table 22: Interest on Working Capital (Rs. Lakhs)
|
S.No |
Particulars |
2008-09
|
2009-10
|
|
1 |
Cost
of Coal for 1½ months |
2582.21 |
2922.04 |
|
2 |
Secondary Fuel Oil for 1 month |
201.08 |
202.55 |
|
3 |
Operation & Maintenance Expenses for 1 month |
701.01 |
1034.15 |
|
4 |
Maintenance Spares @ 1% of Plant and Equipment |
1172 |
1172.00 |
|
5 |
Receivables Equivalent to 2 Months of Fixed and Variable
Charges |
7899.82 |
9105.79 |
|
6 |
Total Working Capital |
12556.12 |
14436.53 |
|
7 |
Interest on Working Capital @ 12.5% |
1569.51 |
1804.57 |
|
Table 23:
Return on Equity (Rs.Crores)
|
Particular |
Proposed for 2009-10 (Rs.Crores) |
|
Equity
at the end of 2008-09 |
138.036 |
|
Additional Equity |
0.741 |
|
Total
Equity |
138.77 |
|
Return
on Equity @14% |
19.43 |
|
There is no assessable income for Income tax
purpose and hence no tax on income is proposed for the year
2009-10.
The fixed costs for the year 2009-10
are summarized below:
Table 24:
Summary of Fixed Costs (Rs.Crores)
|
Particular |
2009-10 |
|
Interest on Loan |
83.15 |
|
Depreciation |
45.55 |
| | 