|
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 actual expenditure incurred
for completion of the project was Rs. 1355.58 crores.
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 |
Equity Contribution by the erstwhile Government of Bihar |
100.00 |
|
2 |
Bihar State Government Loan |
608.90 |
|
3 |
Investment by BSEB |
168.39 |
|
4 |
Loan from PFC |
158.00 |
|
5 |
Interest during Construction. |
320.29 |
|
6 |
Total for Phase 1 |
1355.58 |
The majority of the Phase 1 of the project was
financed by the State Government while about Rs.158 crores
(11.67 % of the funding) was financed by PFC. The entire loan
obtained from PFC has been repaid completely along with
interest. The outstanding loan is from State Government only.
The Petitioner has requested the State Government to reduce the
interest rate in view of the lower interest rates provided by
banks. Response from the State Government is still awaited.
The
Petitioner is also planning to extend (Phase 2) the existing
generating project, by adding three new units of 210 MW each,
the capital cost of which for the FY 2007-08 is estimated to be
Rs.354 crores. This is the Phase 2 of the generating project
which will financed by a mix of debt in the form of funds from
PFC and equity in the form of share capital contribution from
Government of Jharkhand. It is expected to procure about Rs.284
crores from PFC and the remaining from the Government of
Jharkhand.
The fixed costs include:
·
Interest on Loan
·
Depreciation
·
O&M Costs
·
Interest on Working Capital
·
Return on Equity
·
Tax on Income
The details are submitted below for
consideration of Honourable Commission
The loan outstanding as
on 31.03.2007 is Rs.665.9 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 |
|
|
2003-04 |
|
|
|
|
|
|
|
1 |
Bihar
Govt. Loan |
608.90 |
- |
- |
608.90 |
13 |
79.16 |
|
|
Jharkhand Govt. Loan |
30.00 |
- |
- |
30.00 |
13.25 |
3.98 |
|
|
Total 2003-04 |
638.90 |
- |
- |
638.90 |
|
83.14 |
|
|
2004-05 |
|
|
|
|
|
|
|
1 |
Bihar
Govt. Loan |
608.90 |
- |
- |
608.90 |
13 |
79.16 |
|
2 |
Jharkhand Govt. Loan |
30.00 |
- |
- |
30.00 |
13.25 |
3.98 |
|
|
Total
2004-05 |
638.90 |
- |
- |
638.90 |
|
83.14 |
|
|
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 |
The Petitioner received Rs.8 crores from the
Government of Jharkhand towards construction of MGR system in
2006-07. The total loan outstanding as on 31.03.2007 is
therefore Rs.665.9 crores and interest payable on loan is Rs.
86.71 crores. 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 2007-08.
Table 18:
Loan Outstanding and Interest Charges for FY’07 (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 |
57.00 |
- |
- |
57.00 |
13.25 |
7.55 |
|
|
Total
2007-08 |
657.90 |
- |
- |
665.90 |
|
86.71 |
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 19:
Depreciation (Rs. Lakhs)
|
S.No |
Asset Classification |
Asset value at the beginning of 2006-07 |
Rate of depreciation (%) |
Depreciation
Amount (Rs.Cr.) |
|
1 |
Land |
3864.76 |
|
|
|
Buildings |
|
|
|
|
1 |
Factory Buildings |
4210.34 |
3.6 |
151.57 |
|
2 |
Residential Buildings |
2262.59 |
1.8 |
| 