CERC tariff order for DVC, Higlights

New Delhi, Oct 5 (UNI) The Central Electricity Regulatory Authority (CERC) has allowed capital base for generation and transmission assets of Rs 3146 crore as on April 1, 2004 against Damodar Valley Corportion (DVC) claim of Rs 3466 crore.

This is mainly on account of disallowing servicing of the non-performing assets at Durgapur, Bokaro, Chandrapur TPS and Maithon GPS.

Against the DVC claim for debt-equity ratio of 15:85, the Commission has allowed tariff at the normative debt-equity ratio of 70:30.

Return on Equity (ROE) has been provided at 14 per cent and interest on loan has been serviced on the basis of weighted average rate of interest on year to year basis.

Depreciation has been provided at 3.6 per cent for thermal power stations, at 2.57 per cent for hydro power stations and 3.0 per cent for transmission schemes.

The Commission has approved the proposal of petitioner for creation of Pension and Gratuity Fund required as per instructions of C&AG and accepted by the Central Government. Under this head, the Commission has allowed a net amount of Rs 1534 crore related to generation and transmission employees, out of which Rs 614 crore (40 per cent) shall be borne by DVC and the balance Rs 920 crore (60 per cent) shall be recovered through tariff in three annual installments. The above has been taken into account, while approving the year-wise O&M expenses for each power station.

UNI/RT SRS VV1819