Approval of tariff for Mejia Thermal Power Generating Station, Unit Nos 5 & 6 (250 MW each) of Damodar Valley Corporation

CENTRAL ELECTRICITY REGULATORY COMMISSION

NEW DELHI

Record of Proceedings

Petition No.155/2008

Subject: Approval of tariff for Mejia Thermal Power Generating Station, Unit

Nos 5 & 6 (250 MW each) of Damodar Valley Corporation

Coram: Dr. Pramod Deo, Chairperson

Shri R.Krishnamoorthy, Member

Shri S.Jayaraman, Member

Shri V.S.Verma, Member

Date of Hearing: 16.6.2009

Petitioners: Damodar Valley Corporation, Kolkatta

Respondents: WBSEDCL, JSEB and MPPTCL

Parties present: Shri M.G.Ramachandran, Advocate, DVC

Shri T.K.Gupta, DVC

Shri D.K.Majumdar, DVC

Shri P.K.Choudhuri, DVC

Shri A.Biswas, DVC

Shri D.K.Aich, DVC

Shri P.Bhattacharya, DVC

Shri. R.Goswami, DVC

Shri G.Bhunia, DVC

Shri G. Chaudhury, DVC

Shri Shyamal Sarkar, Advocate, BSAL

Shri Gautam Shroff, Advocate, BSAL

Shri K.P.Roy, BSAL

This petition has been filed by the petitioner, Damodar Valley Corporation for

approval of tariff for Mejia Thermal Power Station, Unit Nos 5 & 6 (250 MW each)

(hereinafter referred to as “the generating station”) from the dates of commercial

operation up to 31.3.2009.

2. Unit Nos.5 and 6 of the generating station was commissioned on 29.2.2008 and

24.9.2008 respectively. The petitioner has been supplying power from Unit-5 of the

generating station to the respondents, in terms of the single part provisional tariff of Rs

2.90/kWh approved by the Commission vide its order dated 30.4.2008 in I.A.No.4/2008

in Petition No. 53/2008, subject to the adjustment after approval of final tariff.

3. Learned counsel for the petitioner submitted that the tariff for the generating

station may be determined after taking into consideration the directions contained in the

judgment dated 23.11.2007 of the Appellate Tribunal for Electricity in Appeal

No.273/2006 and the detailed information filed by it as desired by the Commission.

4. Learned counsel for Bhaskar Shrachi Alloys Ltd, (BSAL) one of the consumers of

electricity generated at the generating station, submitted that it had filed an appeal

before the Hon’ble Supreme Court against the judgment dated 23.11.2007 in Appeal

No.273/2006 and other related appeals. Learned counsel further submitted that subject

to the outcome of the appeals, the tariff of the generating station may be fixed after

considering the directions of the Appellate Tribunal in its judgment dated 23.11.2007,

particularly with reference to the debt-equity ratio of the projects commissioned after the

year 1992.

5. The petitioner was directed to submit the following information on affidavit, along

with soft copies, latest by 30.6.2009, with advance copy to the respondents.

(a) Details of deployment of actual equity during each quarter of the year after the

commencement of the project work and upto completion for Unit V and Unit VI

respectively.

(b) Details of deployment of each loan during each quarter of the year from the

commencement of the project work and upto completion, for computation of IDC

for Unit V and Unit VI respectively.

(c) Funding Pattern in Form No. 6.

(d) Price of HFO to be revised in terms of Rs/KL in Form-19 of the petition instead of

Rs/MT presently given.

6. Subject to the above, order in the petition was reserved.

Sd/-

K.S. Dhingra

Chief (Legal)