Union Government, Extraordinary, 1995-01-13, Part II-Section 3-Sub-Section(ii), Ref. 39(E)

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by  Government of India

REGD. NO. D.L.-33004/94
The Gazette Of India
EXTRAORDINARY
PART II—Section 3—Sub-Section (ii)
PUBLISHED BY AUTHORITY
No. 33] NEW DELHI, FRIDAY, JANUARY 13, 1995/PAUSA 23, 1916
109 GI/95 (1)
2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
3
4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
5
MINISTRY OF POWER Percentage An.iual Availability
(H U,-fH,0J K..+H (j )xl00
NOTIFICATION 1 2 n n
(U^tf.H ".".". .+Un)x 8760
New Delhi, the 13th January, 1995
Where, U,, U.. . .U , arc the capacities in Mega
S.O. 39(E).—Tu exercise of tbe powers conferred a L
Watts of different units, end
by sub-section (1) of section 43A of the Electricity
(Supply) Act. 1948 (54 of 1948), the Central Gov- H H....H, arc the hours for which the res-
15 a
ernment hereby m;ikes the following further amend- pective vnits were available for operation during the
ments in the notification of the Government of India year.
in the Ministry of Power number S.O, 251 (E) dated
the 30th March 1992, namely :— (ii) "Dcsigi Energy" means, the quantum of
energy which couM be generated in a 90
In the said notification,— per cent dependable year with 95 per cent
Availability of installed capacity of the
(a) in paragraph 1.1, the following explanation
station.
shall be inserted a,t the end, namely :—
"Explanation :—For removal of doubts, it is clarified Explanation : If the total energy generation in the
that the norms laid down by the Autho- year for which hydrological data i\
rity arc the ceiling norms only and available (say N years) is arraaged in
this shall not preclude the Boards and descending order, the (N + l X 0.9)
Generating Companies from agreeing vear would represent the 90 per cent
to accept improved norms."; dependable year. To 90 per cent de-
pendable year is a year in which the
(b) in par.irrraph 1.5 in clause (e), the explana-
annual energy generation has the pro-
tion ihall be numbered as explanation T, and
bability of being equal to or in excess
after explanation T as so numbered, the
for 90 per cent of the expected perkvJ
following explanation shall be inserted,
of operation of the scheme.
namely :—
(iii) "Installed Capacity" means the summation
"Explanation IT :—Premium raised by the Generat-
of the name plate capaci'y of the generat-
ing Company while issuing share capital
ing units in the station or the capacity as
and investment of internal resources
decided in consultation with the Authority
created out of free reserve of existing
from time to time considering the uprating,
company, if any, for the funding of the
derating, etc., as may be applicable;
project, shall also be reckoned as paid,
up capital for the purpose of comput-
(iv) "Project" includes the complete hydro power
ing the return on equity, provided such
generatirtT facility covering all components
premium amount and internal resourc-
such as dam, intake, water conductor sys-
es are actually utilised for meeting the
tems, power station, generating units, of
capital expenditure of the power gene-
the scheme as apportioned to power gene-
ration project and form part of the
ration and as decided by the Authority;
anproved financial package as set out
in the techno economic clearance ac- (v) "Secondary Energy" means the quantum of
corded by the Authority.'1; energy generated in excess of the design
energy on an annual basis in the station;
fc) for paragraphs 2 to 2.8, the following para-
graphs shall be substituted. (vi) "Station" means a hydro generating station
having an installation of one or more hydro
2. Hydro Power Generating Stations : generating units including reversible units;
The two-part tariff for sale of electricity from hydro 2.2 The norms of operation as have been laid down
power generating stations shall comprise the recovery hy the Authority, for the time being subject to modi-
of annual capacity charge consisting of interest <>n fication thereof, if any, under sub-section (2) of sec-
loan capital, depreciation and energy charges consist- tion 43A of the Act arc as under :—
ing of operation and maintenance expenses, tax on
(i) Normative level of generation (Design
income reckoned as expanses, retur.i on equity and
Energy):
ccssllcvy on water charges a* actuals and interest on
working capital, at a normative level of generation. Energy computed in a 90 per cent dependable year
with 95 per cent availability of installed capacity, as
2.1 Definitions for tariff of hydro station :— set out in techno-economic clearance.
(ii) Normative availability of the project :
In paragraph 2 to 2.8,—
90 per cent Availability.
(i) "Availability", in relation to a project, means
the capacity of the project, including the (iii) Auxiliary consumption. :
generating uaits, to generate power on avai-
0.5 per cent of energy generated.
lability of water; and the annual availabili-
ties of a project shall be determined as per (iv) Transformation losses (from generation vol-
the following formula :— tage to transmission voltage):
6 THE GAZETTE OF INDIA: EXTRAORDINARY [PART II—SEC. 3(ii)]
0.5 per cent of energy generated Explanation II : In case a generating company ti\es
assets on lease, the kashg charge as
(v) Date of Commercial Operation :
approved by the Authority, shall be
Not exceeding 15 days from the date of synchro- considered in the capacity charge in
nisation. lieu of depreciation and interest liability.
Explanation : For removal of doubts, it is clarified
2.7 Full capacity charges shall be recoverable in
that the norms laid down by the Autho-
7,884 hours|year (90 per cent Availability) of opera-
rity arc the ceiling norms only and this
tion. Payment of capacity charge below the level of
shall not preclude the Boards and
7,884 hours|ycar shall be on pro-rata basis. There
Generating Companies from agreeing
shall not be any payment of capacity charges for avail-
to accept improved norms.
ability level above 7,884 hours | year. The capacity
2.3 (a) The capital expenditure of the project lull charge shall be calculated on monthly basis and deno-
3
be financed as per the approved financial package ~et minated in Rs.|KW|,month.
out in the techno-ecoiomic clearance of the Authority.
2.8 Total Energy Charges for a ywr shull be com-
(b) The project cost shall include capitalized initial
puted on the following basis :—
spares. The approved project cost shall be the cost
which has been specified in the techno-cconomic (a) Operation and maintenance cxpe \sa,, inclu-
clearance of the Authority. sive of insurance expenses for the lirst full
year after commissioning of the plant, shall
(c) The actual capital expenditure incurred on
be calculated at 1.5 per cent of the approved
completion of the project shall be a criterion for the
capital expenditure or th; ceilings on capital
fixation of tariff. Wrrre the actual expenditure exceeds
expenditure as provided in paragraph 2.3.
the approved project cost, the excess expenditure as
approved by the Authority shall be deemed to be the (b) The expenditure on operation and mainte-
actual capital expenditure, for the purpose of deter- nance, inclusive of insurance expenses, in
mining the tariff; provided that such excess expendi- each subsequent year after the firsl fall
ture is not attributable to the Generating Company year of operation shall be revised as may
or its suppliers or contractors : be mutualy agreed upon between the Board
and Generating Company on the basis of
Provided further that where a power purchrse weighted price index.
agreement entered into between ihe Generating Com-
pany and the Board provides a ceiling on capital ex- (c) Tax on income, if any, shall be computed as
penditure, the capital expenditure snail not exceed expense at actuals. Any over recoveries or
such ceiling. under recoveries of tax on income shall be
adjusted every year on the basis of a certi-
2.4 In respect of infirm power, i.e. sale of electri- ficate of Auditors.
city prior to commercial operation of the unit, any
revenue from such sale shall be taken as reduction in (d) Return f>n equity shall be computed at 16
capital expenditure and not as net revenue. per cent on the paid up and subscribed capi-
tal relatable to the generating unit.
2.5 Extra rupee liability towards interest payment
and loan repayment actually incurred in the relevant Explanation I : For the purpose of this sub-paragraph,
year shall be admissible, provided it directly arises the Generating Company shall, in re-
out of foreign exchange rate variation and is not at- gard to subscribed equity brought in
tributable to Generating Company or its suppliers or foreign exchange, have the option to
contractors. compute the return on equity not ex-
ceeding 16 per cent in the currency of
2.6 Ths annual capacity charges shall be computed the subscribed Capital.
on the following basis, namely :—
Explanation 11 : Premium raised by the Generating
(a) Interest on loan capital shall be computed Company while issuing share capital
on the outstanding loans, including the and investment of internal resources
schedule of repayment, as per the financial created out of free reserve of an exist-
package approved by the Authority; ing company, if any, for the funding
of the project, shall also be reckoned
(b) The rates of depreciation shall be applicable
as paid up capital for the purpose of
as notified by the Central Government from
computing the return on equity, pro-
time to time; or "Advance Against Depre-
vided such premium amount and Inter-
ciation" shall be applicable at an annual
nal resources are actually utilised for
amount not exceeding one-twelfth of the
meeting the capital expenditure of the
loan amount and limited to the actual loan
liability of the year, as per the approved power generation project and form part
financial package. of the approved financial package as
set out in the techno-economic clea-
Explanation I : The total of depreciation including rance accorded by the Authority.
Advance Against Dcprecia*ion, charged
(d) Interest on Working Capital which covers :
through the tariff shall not exceed 90
per cent of the approved capital cost (i) The operation and maintenance expenses for
during the life of the project. one month.
7
(ii) Maintenance spares at actuals but not ex- The incentives on account of higher Avail-
ceeding one year's requirements less value ability and Secondary Energy shall be pay-
of one fifth of initial spares already capita- able on a monthly basis subject to a cumu-
lised, and lative adjustment in each month of the
financial year and final adjustment at the
(iii) Receivables equivalent to two months of end of the year.
average billing for sale of electricity.
2.11 Deemed Generation :
(e) Other Miscellaneous Charges :
If the Station has achieved the normative Availa-
As may be specifically applicable to the generating blity level in a contract year, but actual energy gene-
unit|station. These would include cess for the use of ration falls short of design energy for reasons solely
water for power generation, if levied, and energy con- attributable to hydrology, the energy charges for gene-
sumption charges for pumped storage schemes as per ration upto design energy shall be payable to the
actual payment made for the energy supplied for pur- Generating company during the first seven years of
operation.
pose of puming water.
In case of reduced generation due to reasons be-
2.9 The per unit cost of primary energy shall be
yond the control of Generating Company and non-
calculated by dividing the total Energy charges by the
availability of Board's transmission lines or on re-
Design Energy of the project and shall be denomi-
ceipt of backing down instructions from the concern-
nated as Rupee per Kilo-watt hour. The payment of
ed Regional Electricity Board and it results in spill-
primary energy charges shall be based on actual gene-
age of water, th^ energy loss on account of such spil-
ration during the moDth. limited to the design energy
lage shall be considered as deemed generation limited
apportioned for the month. For this purpose, the full
to the design energy.
Design Energy shall be apportioned in the twelve
calendar months of the year, as may be mutually
2.12 For payment of bills through Letters of Credit,
agreed between the Board and the Company.
a rebate of 2.5 per cent shall be allowed. Where pay-
ments are made otherwise than through opening of
2.10 Incentives :
Letters of credit, but within a period ol' one month
of presentation of bills by the Generating Company,
In addition to the 'capacity charge' and primary
a rebate of 1 per cent shall be allowed.1 ;
energy charge, the company shall be paid incentive as
under :
(d) After paragraph 3.3, the following paragraphs
(i) For 'Availability' of installed capacity above shall be added namely :—
normative level of 90 per cent, the rate of
"3.4 This notification shall be applicable to such
incentive shall be mutually agreed upon
hydro-power generating stations which shall
between the Generating Company and the
commence commercial operation on or after
Board but it shall not exceed 0.7 per cent
the 1st January, 1997."
return on equity for each percentage point
increase in availability.
fF. No. 2|9jNHPCiTariff|94]
(ii) Energy charges for secondary energy.—The S. R. SHIVRAIN, Jt. Secy.
rate of incentive for secondary energy shall
be mutually agreed between the Board and Foot Note : The Principal Notification was published
the Generating Company. However the maxi- in the Gazette of India, Part II, Sec. 3, Sub-
mum payment on this account in any year section (i), dated 30th March 1992 and
shall not exceed 10 per cent return on subsequently amended by S.O. 36 (E) dated
equity. 19-1-1994 and S.O. 6O5(E) dated 22-8-94.
Printed by th= Manager, Govt. of India Press, Ring Road, Maya Puri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054, 1995