CASE NO. 65/2001 & 4/2002

Present : Shri D.C. Sahoo, Chairman
            Shri H.S. Sahu, Member
            Shri B.C. Jena, Member

Date of Hearing: 18.03.2002
Date of Order: 19.04.2002

IN THE MATTER OF : An application for approval of Transmission and Bulk Supply Tariff under Section 26 of the Orissa Electricity Act 1995 for the financial year 2001-02.


For approval of Annual Revenue Requirement for financial year 2002-03 under Section 26(4) of the Orissa Electricity Reform Act 1995 read with condition 21.1 of the Orissa Transmission and Bulk Supply License 1997 (No.2/97).



Salient Point of the Tariff Order for FY 2002-03 (both BST & RST )

  1. Calendar of Activities 

  2. High Court Order

Order on Transmission and Bulk Supply Tariff and approval of Revenue Requirement of GRIDCO for FY 2001-02 & 2002-03 (Case No.65/2001 & 4/2002)

  1. Procedural History

  2. Legal Objections as to the maintainability of the Cases

  3. GRIDCO's Proposal

  4. Objections to the Bulk Supply Tariff Proposal by GRIDCO 

  5. Objections to the Annual revenue requirement filing by GRIDCO for FY 2002-03

  6. GRIDCO's response to objections

  7. Commission's Observation and analysis of GRIDCO's proposal

  8. Scenario of the power sector reform in Orissa

  9. Restructuring of the Power Sector

  10. Strategies for Improvement of Power Sector

  11. Multi-year Tariff Strategy

  12. Revaluation of Assets OHPC/GRIDCO

  13. Treatment of Depreciation

  14. Depreciation of GRIDCO & DISTCOs

  15. Securitisation of Power Purchase dues

  16. Reasonable Return

  17. Treatment of Working Capital

  18. Method of determination of Power Purchase

  19. Quantum of power purchase

  20. Export of Power

  21. Demand estimation for DISTCOs

  22. Sources of Power Purchase

  23. Computation of Transmission Loss

  24. Power Procurement Cost

  25. Commission's approval of cost of power

  26. Rebate for Prompt Payment from the Generators

  27. Year End Charges

  28. Transmission Cost

  29. Employees cost

  30. Repair & Maintenance Expenses

  31. Approved investment for restoring damages

  32. Administration and General Expenses

  33. Interest on Loan

  34. World Bank Loan

  35. Loan from HIW

  36. State Government Loan

  37. Zero Coupon Bond

  38. Loan from Central Government

  39. Loan from PFC

  40. Loan from REC

  41. LIC Loan

  42. GRIDCO Bond

  43. OSEB Bonds

  44. Pension Trust Bond

  45. Short Term Loan & Cash Credit

  46. Capitalization of Interest

  47. Depreciation

  48. Contribution to contingency Reserve

  49. Capital Base

  50. Original cost of work-in-progress

  51. Intangible Assets

  52. Compulsory Investment under Sixth Schedule

  53. Working capital

  54. Revenue Requirement for the year 2001-02 & 2002-03

  55. Corrective measures and alternative calculation of revenue requirement

  56. Expected Revenue from charges

  57. Bulk Supply Tariff for FY 2002-03

  58. BST Rate with correctives

  59. Over drawal Charges

  60. Rebate

  61. Delayed Payment Surcharge

  62. Transmission Tariff

  63. Transmission loss for wheeling

  64. Delayed Payment Surcharge (For transmission charges)

  65. Duty and Taxes

  66. BST rate without correctives

  67. Annex - 1    Revenue requirement for FY 2001-02

  68. Annex - 2    Calculation of clear profit for FY 2001-02

  69. Annex - 3    Calculation of Capital base and reasonable return for FY 2001-02

  70. Annex - 4    Revenue requirement for FY 2002-03

  71. Annex - 5    Calculation of clear profit for FY 2002-03

  72. Annex - 6    Calculation of Capital base and reasonable return for FY 2002-03

M/s. Grid Corporation of Orissa Ltd., Janpath, Bhubaneswar (in short GRIDCO), the holder of The Orissa Transmission & Bulk Supply Licence, 1997 (No.2/1997) has submitted two applications u/s 26 of the Orissa Electricity Reform Act, 1995 (Reform Act, 1995, for short) in respect of its Revenue Requirement, Tariff for Bulk Supply of electricity and Tariff for use of transmission services. Its application for determination of Transmission & Bulk Supply Tariff for the Financial Year 2001-2002 has been registered as Case No.65/2001 and application for Revenue Requirement for the Financial Year 2002-2003 has been registered as Case No.4/2002. Both the Cases being inter-related to each other have been heard analogously and are being disposed off by this common order.