Infra Plan- An Initiative of MSEDCL to Strength its Distribution … · Summer Training Report...

SUMMER INTERNSHIP REPORT

Infra Plan- An Initiative of MSEDCL

to Strength its Distribution Sector

UNDER THE GUIDANCE OF

Mrs. Indu Maheshwari, Deputy Director, NPTI

&

Mr. Sanjay S. Khandare, Executive Engineer, MSEDCL HO-Mumbai

At

Maharashtra State Electricity Distribution Company Limited, Mumbai

Submitted by

Mr. PRANAY KHOBRAGADE

ROLL NO: 1120812241

MBA (POWER MANAGEMENT)

(Under the Ministry of Power, Govt. of India)

Affiliated to

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

AUGUST 2012

i

TRAINING CERTIFICATE

ii

DECLARATION

I, PRANAY KHOBRAGADE, Roll No 1120812241, student of MBA-Power

Management (2011-13) at National Power Training Institute, Faridabad hereby declare that the

Summer Training Report entitled “Infra Plan-An Initiative of MSEDCL to Strength its

Distribution Sector” is an original work and the same has not been submitted to any other

Institute for the award of any other degree.

A Seminar presentation of the Training Report was made on

________________________ and the suggestions as approved by the faculty were duly

incorporated.

Presentation In-Charge Signature of the Candidate

(Faculty)

Countersigned

Director/Principal of the Institute

iii

ACKNOWLEDGEMENT

Training is a great opportunity for a student if he has to move forward in his career.

Every lesson, and each instruction learnt and kept in heart and mind during the training proves as

source material and guiding-light for the student in his onward march. This widens his horoscope

of knowledge, strengthen his ability, analytical skills and also help him to build up his own self

and independent outlook. I considered myself very fortunate that I could enjoy the patronage of

this great organization-MSEDCL.

It is great pleasure for me to acknowledge and express my profound gratitude to my

Project Guide Mr.Sanjay S. Khandare- Executive Engineer (Infra Plan) at MSEDCL Head

Office Mumbai, without his help and guidance it would have been difficult for me to complete

this work.

I would also like to acknowledge Mr.A.N Gujar-Chief Engineer (Infra Plan),

Mr.S.K Langote-Superintendent Engineer ( Infra Plan), Mr.Vijay Bhatkar-Executive

Engineer (Infra Plan), Mr.Lakshman Choure-Executive Engineer (Infra Plan), Mr.

Mandar Atre-Executive Engineer (Infra Plan), Mr.Sagar Thota-Junior Engineer (Infra

Plan), Mr.Yogendra Wagh-Junior Engineer ( Infra Plan), Mr.Sujit Sawada -Junior

Engineer (Infra Plan), Mr.Sujitkumar P. Mairale-Technical Assistant (Projects),

Mr.Hemant S. Chavan-Junior Engineer ( R-APDRP), Mr.Shailesh Raut-Junior Engineer (

R-APDRP) at MSEDCL office for their continuous guidance and support during the entire

tenure of this project.

I am very much thankful to Mr. S.K Choudhary, Principal Director, CAMPS (NPTI),

my internal Project Guide Mrs. Indu Maheshwari, Deputy Director, NPTI, for her valuable

inputs and timely guidance and inspiration from time to time to pursue my this venture,

Mrs. Manju Mam, Deputy Director, NPTI, for arranging my internship at MSEDCL. I would

also like to thank all other distinguished faculty members of CAMPS (NPTI) for their support

and guidance throughout this project.

Pranay Khobragade

iv

EXECUTIVE SUMMARY

MSEDCL’s Infrastructure Plan (Infra Plan) schemes are basically formulated for various

capital renovation and modernization (R&M) works to be taken up for distribution sector during

the assigned time period under the jurisdiction of different Divisions, Circles and Zones. The

basic infrastructure for Divisions, Circles and Zones is based on identified requirements and

needs. These needs have been consolidated into the “Plan for Division”, “Plan for Circle”,

and “Plan for Zone”. Infra Plan project has been developed to take up the top priority works

which will address the infrastructure deficiencies .The care has been taken to ensure that the

expected load growth up to forecasted time period of project completion has been considered.

The Infra Plan works are carried out into different phases (I, II, IIA, IV, V, VIC, VID,

IIB) covering total 120 Divisions in-principle with clearance of Rs 9,71,590.88 lakhs

(approximately) approved by MERC. The financing agencies for Infra Plan schemes are Power

Finance Cooperation, Rural Electrification and Raigad Bank.

These schemes are focused on works that will improve the reliability and quality of

power supply in the area, as well as on enhancing the system’s capacity to meet the growth in

demand and reducing the technical and commercial losses. The proposed works will enable

reduction in the distribution system losses, improvement in the voltage profile and also looking

into the additional units available on account of reduction in losses and spare capacity created,

the schemes payback is very promising.

The Infra Plan department of MSEDCL manages the whole works of Infra Plan schemes

as described in “Phase wise details and process flow involved in Infra Plan Projects” chapter 3 of

this report .The case study of Ballarshah Division is done in chapter 4 which shows the technical

and commercial benefits achieved with the implementation of Infra Plan project schemes.

v

LIST OF FIGURES

Figure No. Page No.

1 DPR submission & approval process 28

2 Flow chart of Financial Institute Process 31

3 Flow chart of E-Tendering Registration Process 32

4 Flow chart of Tendering Process 37-38

5 Flow chart of Milestone Preparation Process 39

6 Flow chart of Material Inspection Process 41

7 Flow chart of 70% Bill Payment Process 44

vi

LIST OF TABLES

Table No. Page No.

1.6.1 Difference between Infrastructure Plan & R-APDRP 4-5

3.1 Work to be carried out in Infrastructure Plan 19

3.1.1.1 Cost analysis of Infrastructure Plan Phase 1 20

3.1.2.2 List of Zones/Circles/Divisions covered in Infrastructure Plan

Phase 1

20-21

3.1.2.1 Cost analysis of Infrastructure Plan Phase II 21


Phase II

21-23

3.1.3.1 Cost analysis of Infrastructure Plan Phase IIA 23-24


Phase IIA

24-25

3.1.4.1 Cost analysis of Infrastructure Plan Phase IV 25


Phase IV

25

3.1.5.1 Cost analysis of Infrastructure Plan Phase VIC 26


Phase VIC

26

3.1.6.1 Cost analysis of Infrastructure Plan Phase VID

27


Phase VID

27

3.2.4.1 Tender fee excluding tax 36

3.2.6.1 Minimum Turn Over of Vendors 42

4.1.1.d.1 Conductor size & Maximum loading 52

4.2.2.1 Basic data of Ballarshah Division 58

4.2.4.1 Cost benefit analysis of Ballarshah Division 60

4.2.5.I.1 Phasing of expenditure of Ballarshah Division 61

vii

Table No. Page No.

4.2.5.II.A.1 Benefits due to additional sale of energy 61

4.2.5.II.B.1 Benefits due to saving in loss 62

4.2.5.III.1 Financial benefits due to additional sale of energy 62

4.2.5.VI.1 Total benefit to utility due to scheme 63

4.2.5.VII.1 IIR calculation 63-64

4.2.6.I.a.1 Base line loss levels & Target loss levels 65

4.2.6.I.c.1 HT-LT ratio present & projected level 65

4.2.6.II.1 Benchmarking Parameters 67

viii

ABBREVIATIONS

Abbreviations Expended Versions

APDRP Accelerated power Development Reform Program

AT&C Aggregate Technical and Commercial Loss

AMR Automatic Meter Reading

BEST Bombay Electricity Supply Transmit

CA Officer Contemporary Authority Officer

DTC Distribution Transformer Centre

FY Financial Year

GOI Government of India

GIS Geographical Information System

HVDS High Voltage Distribution System

HT Line High Tension Line

IR Internal Reform

IIR Internal Rate of Return

LVDS Low Voltage Distribution System

LT line Low Tension line

MIS Management Information System

MSEB Maharashtra State Electricity Board

MSEDCL Maharashtra State Electricity Distribution Company Limited

MERC Maharashtra State Electricity Regulatory Commission

O&M Operation and Maintenance

PFC Power Finance Cooperation

PGCIL Power Grid Corporation of India Limited

RTU Remote Terminal Unit

R&M Renovation and Modernization

RCI Connection Residential Commercial and Industrial Connection

REC Rural Electrification Cooperation

RA Officer Regional Authority Officer

SOP Standard of Performance

ix

ABBREVIATIONS

Abbreviations Expended Versions

TPIEA-EA Third Party Independent Evaluation Agency - Energy Audit

USO Universal Service Obligation

USAID United State Agency for International Development

WEC-IMC World Energy Council Indian Member Committee

x

TABLES OF CONTENTS

CERTIFICATE--------------------------------------------------------------------------------------------- (i)

DECLARATION------------------------------------------------------------------------------------------- (ii)

ACKNOWLEDGEMENT-------------------------------------------------------------------------------- (iii)

EXECUTIVE SUMMARY------------------------------------------------------------------------------ (iv)

LIST OF FIGURES---------------------------------------------------------------------------------------- (v)

LIST OF TABLES------------------------------------------------------------------------------------ (vi-vii)

ABBREVIATIONS---------------------------------------------------------------------------------- (viii–ix)

CHAPTER-1

INTRODUCTION

Page No.

1.1 Introduction------------------------------------------------------------------------------------------ (1)

1.2 Problem Statement---------------------------------------------------------------------------------- (2)

1.3 Objective of Project ----------------------------------------------------------------------------- (2-3)

1.4 Significance of Project----------------------------------------------------------------------------- (3)

1.5 Role of MERC in Infra Plan Projects------------------------------------------------------------ (3)

1.6 Difference between R-APDRP & Infra Plan Projects--------------------------------------- (4-5)

1.7 About Organization

1.7.1 Unbundling of MSEB and formation of MSEDCL--------------------------------------- (6)

1.7.2 Mission Statements---------------------------------------------------------------------------- (7)

1.7.3 Functions of MSEDCL “Action Plan”--------------------------------------------------- (7-9)

1.7.4 Organization Structure of MSEDCL------------------------------------------------------ (10)

CHAPTER-2

LITERATURE SURVERY, POLICY AND RESEARCH METHODOLOGY

Page No.

2.1 Literature Review------------------------------------------------------------------------------ (11-18)

2.2 Research Methodology Adopted---------------------------------------------------------------- (18)

xi

CHAPTER-3

PHASE WISE DETAILS & PROCESS FLOW INVOLVED IN INFRASTRUCTURE

PLAN PROJECTS

Page No.

3.1 Phase wise details of Infrastructure Plan Projects

3.1.1 Infrastructure Plan Phase I-------------------------------------------------------------- (19-21)

3.1.2 Infrastructure Plan Phase II------------------------------------------------------------- (21-23)

3.1.3 Infrastructure Plan Phase IIA----------------------------------------------------------- (23-25)

3.1.4 Infrastructure Plan Phase IV---------------------------------------------------------------- (25)

3.1.5 Infrastructure Plan Phase VIC-------------------------------------------------------------- (26)

3.1.6 Infrastructure Plan Phase VID-------------------------------------------------------------- (27)

3.1.7 Infrastructure Plan Phase IIB--------------------------------------------------------------- (28)

3.2 Process Flow Involved in Infrastructure Plan Projects

3.2.1 DPR Submission and Approval Process----------------------------------------------- (28-29)

3.2.2 Financial Institutes ----------------------------------------------------------------------- (29-30)

3.2.3 E-Tendering Registration Process------------------------------------------------------ (32-35)

3.2.4 Tendering Process------------------------------------------------------------------------- (35-39)

3.2.5 Milestone Chart Preparation------------------------------------------------------------- (39-40)

3.2.6 Material Inspection Process------------------------------------------------------------- (40-43)

3.2.7 Billing Process----------------------------------------------------------------------------- (43-48)

3.2.8 Project Completion and Handling Over Taking Over------------------------------------ (48)

3.2.9 Third Party Quality Inspection of Work (Sample Basis) ------------------------------- (49)

CHAPTER -4

IMPLICATION STRATEGIES & COST BENEFIT ANALYSIS OF INFRASTRUCTURE

PLAN PROJECT

Page No.

4.1 Implication strategy of Infrastructure Plan Project

4.1.1 Design Methodology-------------------------------------------------------------------- (50-54)

4.1.2 Implementation and Monitoring------------------------------------------------------- (55-56)

xii

4.2 Case study of Ballarshah Division

4.2.1 Introduction of Ballarshah Division--------------------------------------------------- (57-58)

4.2.2 Basic Data of Ballarshah Division -------------------------------------------------------- (58)

4.2.3 Rationale and Method of calculation-------------------------------------------------- (59-60)

4.2.4 Cost Benefits Analysis----------------------------------------------------------------------- (60)

4.2.5 Financial Viability Calculation--------------------------------------------------------- (61-64)

4.2.6 Benchmarking---------------------------------------------------------------------------- (64-67)

CHAPTER-5

CONCLUSION, RECOMMENDATIONS & FUTRUE SCOPE

Page No.

5.1 Conclusion-------------------------------------------------------------------------------------- (68-69)

5.2 Recommendations or Suggestions---------------------------------------------------------- (70-71)

5.3 Future Scope--------------------------------------------------------------------------------------- (71)

BIBILOGRAPY-------------------------------------------------------------------------------------- (72-73)

APPENDIX

1) Formulae for calculation of Table No.4.2.4.1--------------------------------------- (74)

2) Formulae for calculation of Table No.4.2.5.I.1------------------------------------- (74)

3) Formulae for calculation of Table No.4.2.5.II.A.1--------------------------------- (74)

4) Formulae for calculation of Table No.4.2.5.II.B.1--------------------------------- (75)

5) Formulae for calculation of Table No.4.2.5.III.1----------------------------------- (75)

6) Formulae for calculation of financial benefits due to saving in losses---------- (75)

7) Formulae for calculation of Table No.4.2.5.VI.1 ---------------------------------- (75)

8) Formulae for calculation of Table No.4.2.5.VII.1---------------------------------- (75)

9) Formulae for calculation of Table No.4.2.6.II.1------------------------------------ (76)

ANNEXURE I---------------------------------------------------------------------------------------- (77-78)

ANNEXURE II -------------------------------------------------------------------------------------- (79-80)

ANNEXUREIII------------------------------------------------------------------------------------------ (81)

ANNEXURE IV------------------------------------------------------------------------------------------ (82)

ANNEXURE V------------------------------------------------------------------------------------------- (82)

ANNEXUREVI--------------------------------------------------------------------------------------- (83-84)

1

CHAPTER-1

INTRODUCTION

1.1 Introduction

The Maharashtra State Electricity Board (MSEB) was established way back in 1960 as

per the Section 5 of The Electricity Supply Act 1948 & entrusted with the work of expansion of

electrical network throughout the State of Maharashtra. The MSEB was looking after generation,

transmission, and distribution of electricity in State of Maharashtra barring Mumbai. But with

enactment of Electricity Act 2003, MSEB was unbundled into 4 companies:-

a) MSEB Holding Company Limited

b) Maharashtra State Electricity Distribution Company Limited (Maha Vitran)

c) Maharashtra State Electricity Generation Company Limited (Maha Genco)

d) Maharashtra State Electricity Transmission Company Limited (Maha Transco)

MSEDCL came into existence after unbundling of MSEB. It took responsibility of

distribution of electricity in the entire State of Maharashtra barring the jurisdictions of utilities

like BEST and Reliance. The infrastructure inherited by MSEDCL from erstwhile MSEB is quite

old, deteriorated and overloaded too. There were interruptions in the supply due to failure of old

equipment’s, lines which were meeting the load growth. It has, therefore, been felt essential to

take immediate measures, in order to meet the challenges thrown by the Electricity Act 2003.

The outcome of the above is the proposed Infrastructure Plan worth Rs 9, 71,590.88 lakhs

(approximately).

2

1.2 Problem Statement

Due to the old, deteriorated and overloaded system and high transformer failure rate the

consumers are put to a great deal of hardship. There is an ever increasing demand for additional

supply which the existing system is unable to handle. These constraints were further escalating

considering the expected load growth and mandatory obligations under the Standard of

Performance (SOP) and Supply Code and Conditions of Supply. In order to overcome these

difficulties the proposed Infra Plan investments have been planned with due consideration of the

problems, needs and priorities of the Division, Circles and Zones in Maharashtra State by

MSEDCL. The case study on Ballarshah Division is done in which shows the technical and

commercial benefits after implementation of Infra Plan project.

1.3 Objective of Project

Infra Plan projects helps to achieve the following broad objectives:

a) Increase the system reliability and improve the Standards of Performance (SOP) through

reduction in interruptions, improvement in the reliability benchmarks, reducing the DTC failure

rate to 4% in urban areas and 7% in rural areas, improving the power factor through a proper

Reactive Power Management Plan, improving the voltage profile, and enhancing customer

services and reliability through introduction of SCADA, call centers and consumer facility

centers in Municipal Corporation areas.

b) Meet the load growth demand so as to enable access to electricity by 2012 through technical

loss reduction and capacity addition and augmentation in the substations, distribution lines,

power transformers and distribution transformers.

c) Reduce the distribution system (Technical) losses (to reduce the requirement for costly power

purchases) through addition and augmentation of substations, erection of lines (especially more

HT lines as compared to the LT lines), installation of new and replacement of old distribution

transformers, installation of capacitors to help improve the power factor, enhancement of line

3

capacity by upgrading the existing lines, replacing old, worn out and inaccurate meters to reduce

commercial losses.

Based on the above needs and priorities the Infra Plan project has been formulated to

achieve the following objectives:

i) Improving the reliability and quality of the power supply.

ii) Addition of infrastructure to meet load growth.

iii) Reduction of technical and commercial losses.

iv) Strengthening of existing infrastructure to overcome the existing deficiencies.

1.4 Significance of Project

This project is important to study the challenges faced by existing infrastructure in

distribution utilities for supply of electricity to its consumers. As it is observed, that the

consumers are put to a great deal of hardship due to the old, deteriorated and overload system

and high transformers failures rate. There is an increasing demand for additional supply which

the existing electric distribution infrastructure is unable to handle. This project helps to

understand the need of building new infrastructure and renovating and modernizing existing

infrastructure of distribution utility .In this project report describes initiative taken by MSEDCL

to strengthen its distribution of electricity by Infrastructure plan projects. The cost benefits

analysis of Ballarshah Division shows benefits of implementation of Infra Plan projects.

1.5 Role of MERC

To lay down the approach and methodology for ex-ante assessment of major investment

schemes for considering in-principle clearance.

To spell-out the evaluation criteria for such ex-ante assessment.

To lay down guidelines for the submission of Feasibility Reports so as to facilitate easy

evaluation and monitoring of such proposed investment schemes against benchmark

figures.

4

1.6 Difference between R-APDRP & Infra Plan Projects

(Table No. 1.6.1:- Difference between R-APDRP & Infrastructure Plan)

Sr. No. R-APRRP Infrastructure Plan

1 Introduction i) R-APDRP is GOI’s initiative to

reform Distribution Sector.

i) It intends to strengthen MSEDCL

present distribution sector by

increasing infrastructure.

2 Proposed

Scheme

Projects under the scheme shall be

taken up in Two Parts.

i) Part-A shall include the projects

for establishment of baseline data

and IT applications for energy

accounting / auditing & IT based

consumer service centres.

ii) Part-B shall include regular

distribution strengthening projects

Projects under the scheme shall be

i) Intended to take up works of

electrification, supply, test,

transport, construction, erection,

testing and commissioning of

sub-transmission lines, power

transformers, new-substations,

augmentation of existing S/S,

11kV/22kV lines, distribution

transformer centres of varying

capacities, renovation &

modernization works.

3

Program

Coverage

i) It is proposed to cover urban areas

- towns and cities with population of

more than 30,000 (10,000 in case of

special category states).

i) It contains 81 tenders covering

120 divisions including rural and

urban areas of Maharashtra.

4 Funding

Mechanism

i) GOI will provide 100% loan for

part A of the R-APDRP schemes.

ii) GOI will provide up to 25% (90%

for special category States) Loan for

Part B of the R-APDRP schemes.

iii) The entire loan from GOI will be

routed through PFC/REC.

i) For Trunkey Contract 80% loan is

provided by funding agencies and

20% is equity of Government of

Maharashtra state.

ii) The funding agencies are PFC,

REC and Raigad Bank.

5

5 Conversion

of GoI Loan

into Grant

i) The entire amount of GoI loan

(100%) for part A of the project shall

be converted into grant after

establishment of the required Base-

Line data system within a stipulated

time frame and duly verified by

TPIEA.

ii) Up to 50% (90% for special

category States) loan for Part-B

projects shall be converted into grant

in five equal tranches on achieving

15% AT&C loss in the project area

duly verified by TPIEA on a

sustainable basis for a period of five

years.

i) There is no such provision of

converting loan into grant. The loan

taken from Financial Institutions is

paid back with interest within the

fixed time-period as specified in the

terms and conditions of loan

documents.

6 Progress by

MSEDCL

i) Under Part-A, Rs 324.29 Crs has

been sanctioned for 130 towns out of

133 towns.

ii) Under Part-B, Rs 3284.20 Crs has

been sanctioned for 122 towns.

i) Infrastructure Plan Phase I, II, IIA,

IV, VI, VIC, IIB are under

execution.

6

1.7 About Organization

1.7.1 Unbundling of MSEB & formation of MSEDCL

Erstwhile Maharashtra State Electricity Board was looking after generation, transmission

& distribution of electricity in the State of Maharashtra barring Mumbai. But with enactment of

Electricity Act 2003, MSEB was unbundled into 4 Companies viz. MSEB Holding Co. Ltd.,

Maharashtra State Electricity Distribution Co. Ltd., Maharashtra State Power Generation Co.Ltd.

and Maharashtra State Electricity Transmission Co. Ltd. on 6th June 2005.

The MSEDCL supplies electricity to a staggering 1.93 crore consumers across the

categories all over Maharashtra excluding the island city of Mumbai. There are about 1.43 crore

residential,31.70 lakh agricultural, 13.79 lakh commercial and 3.63 lakh industrial consumers in

MSEDCL area which fetch annual revenue of about Rs. 34,000 crore. MSEDCL’s sources of

power include thermal, hydro, gas and non-conventional sources like solar, wind, bagasse etc.

apart from hydro power of Koyna. Thermal power constitutes the major share which it gets from

Mahagenco projects, Central Sector projects.

In terms of infrastructure, MSEDCL operates a vast far flung network comprising of 33

KV, 22 KV & 11 KV lines, sub-stations and distribution transformers spread over 3.08 lakh sq.

kms geographical area of Maharashtra covering 41,095 villages and 457 towns. It has 34,151

substations (33 KV) with 55,218 MVA of transformation capacity, 10334 HV feeders, and

several thousand circuit kms of HT and LT lines. The MSEDCL has a workforce of about 77,109

employees. This force is the real asset of the company. The welfare and well-being of this asset

has been given top priority by the company. As such it has enhanced the scope of training

facilities to a great extent. In addition to the existing 4 training centres, MSEDCL has recently

established well equipped 25 small training centres at Circle offices which impart necessary

training to line staff. Every year about 30000 employees are put through

refresher/professional/HR trainings. Safety is given special importance and safety training is

imparted to line staff on regular basis. Engineers are also deputed to various other well reputed

training centres.

7

1.7.2 Mission Statements

a) We as a professional company, rededicate ourselves to serve all consumers by

extending reliable and quality power supply at reasonable and competitive tariffs so as to boost

agricultural, Industrial and overall economic development of Maharashtra.

b) We commit to honesty, integrity and transparency in actions to achieve higher

standards of consumer’s satisfaction.

c) We aim to achieve technology excellence and financial turnaround for the overall

benefits of the customers.

d) We will strives hard for system improvement and stress upon primitive maintenance.

e) We will ruthlessly curb the theft of electricity.

f) We will encourage and support energy saving activities and demand side management

thereby optimizing the use of electricity.

g) We will fulfill our commitment to society by improving quality of life.

1.7.3 Functions of MSEDCL “Action Plan”

1. Improving quality of supply and retention of interruptions.

Priority Focus on :-

-Receipts and preventive maintenance of distribution systems.

-Up gradation renovation and modernization of distribution system.

2. Consumer Grievances Redressal Systems.

Single window customer facilitation centres.

MERCs standards of performance (SOP) as customer charter.

RCI connections to be released on demand.

3. Proactive distribution network planning with viable funding plan.

Preparing sub-division wise information about consumer load profile and demand

growth.

8

Infrastructure up gradation and strengthening plan-subdivision wise.

Preparing viable funding plan sub division wise.

4. Distribution system loss reduction

Introduction of complete accountability through energy accounting and complete

metering of consumers.

100% DTC metering and DTC wise loss reduction program.

Catching & prosecution of theft & sever action those against who abet in theft.

Reducing transformer losses and also line losses through HVDS & improve HT/LT ratio.

5. Improvement in collection Efficiency.

Reduction of live arrears.

Reduction of P.D. Arrears

Zero tolerance for non-payment of bills.(Proper timely disconnection)

100% billing on the basis of actual meter reading and elimination of average billing.

Use of spot billing and other special billing & collection techniques.

6. Circles to acts as profit centres.

Circles to buy the power they requires, pay for it and meet their expenses through their

own income.

7. Use of technological advance and computerization for improving the efficiency,

accountability, information levels and consumer satisfaction .e.g.

Distribution automation projects like AMR, SCADA, and MIS.

Call Centers in all urban areas.

E-tendering

Networking mapping through Geographical Information System (GIS)

8. Improved services to agriculture consumers.

Reduction of distribution transformer failure rate.

9

9. Measures to improve working conditions of employees.

Improvement in work culture.

Measure to improve safety during working.

Working conditions of employees to be rewarded.

Special Training programs for employees to improve motivation & on dealing with

consumers.

10. Demand side management and peak load management. (Measure shedding)

Special separate feeders for Gaothans.

Energy saying schemes for residential public lighting, public water works and

Agriculture consumers.

Reactive Power Management through capacitor installation.

10

1.7.4 Organization Structure of MSEDCL

11

CHAPTER-2

LITERATURE SURVERY, POLICY & RESEARCH METHODS

2.1 Literature Review

[1] Turan Gonen (1986) explains in his book about distribution system planning which says that

system planning is essential to assure that the growing demand for electricity can be satisfied by

distribution system additions which are both technically adequate and reasonably economical.

Even though considerable work has been done in the past on the application of some type of

systematic approach to generation and transmission system planning, its application to

distribution system planning has fortunately been somewhat neglected. In future, more than in

past, electric utilities will need a fast and economical planning tool to evaluate the consequences

of different proposed alternatives and their impact on the rest of the system to provide the

necessary economical, reliable ,and safe electric energy to consumers. The objective of

distribution system planning is to assure that growing demand for electricity, in term of

increasing growth rates and high load densities, can be satisfied in an optimum way by additional

distribution systems from the secondary conductors through the bulk power substations, which

are both technically adequate and reasonably economical. All these factors and others, e.g., the

scarcity of available land in urban areas and ecological considerations, can put the problem of

optimal distribution system planning beyond the resolving power of the unaided human mind.

Distribution system planners must determine the load magnitude and its geographic location

.Then the distribution substations must be placed and sized in such way as to serve the load at

maximum cost effectiveness by minimizing feeder losses and construction costs, while

considering the constrains of service reliability. In the past, the planning for the other portions of

the electric power supply system and distribution system frequently has been authorized at the

company division level without review of coordination with long-range plans. As a result of the

increasing cost of energy, equipment, and labor, improved system planning through use of

efficient planning methods and techniques is inevitable and necessary. The distribution system is

particularly important to an electrical utility for two reasons: (1) its close proximity to the

ultimate customer and (2) its high investment cost.

12

[2] MERC (2005) stated the guidelines for in-principle clearance of proposed investment

scheme. This guide lines are followed by MSEDCL for Infrastructure Plan projects. The

Electricity Act, 2003 has given State Electricity Regulatory Commissions wide- ranging powers

and flexibility to regulate the power sector. Under Section 61, the Commission has the power to

specify the terms and conditions for the determination of tariff and in doing so it is required to be

guided by the factors which would encourage competition, efficiency, economical use of the

resources, good performance and optimum investments so that generation, transmission,

distribution and supply of electricity is conducted on commercial principles and the consumer’s

interest is safeguarded. Under the proviso to Regulation 4.1 of the Tariff Regulations, the need to

link tariff adjustments to increases in the productivity of capital employed is also to be kept in

view. While Capital Investment is required to be made by Licensees for various purposes like

the creation of new infrastructure to meet load growth, to meet statutory requirements, to

strengthen the existing system and increase its efficiency, replace old/ obsolete assets, any such

capital investment increases the capital base and consequently the reasonable return thus

affecting the tariff to consumers. It is therefore necessary to ensure that such capital investment

schemes being proposed are necessary and justified, and do not impose an unnecessary burden

on consumers by way of tariff. During the Tariff Determination processes undertaken so far,

various objectors raised the issue of the prudence of the capital investment being made by

Licensees. After examining all aspects in this regard, the Commission directed Licensees Tata

Power Company (TPC) and Reliance Energy Limited (REL) to submit details in respect of all

proposed Capital Investments exceeding Rs. 10 crores for approval to the Commission.

[3] MERC (2005) according to the (Standards of Performance of Distribution Licensees, Period

for Giving Supply and Determination of Compensation) Regulations, 2005 have set up Standards

of Performance (SOP) for distribution licensees. It states that the Distribution Licensee shall

maintain the standards of performance specified in these Regulations: Provided that any time

limits set out in these Regulations shall refer to the maximum time permitted for performing the

activities to which they relate. Any failure by the Distribution Licensee to maintain the standards

of performance specified in these Regulations shall render the Distribution Licensee liable to

13

payment of compensation to a person claiming such compensation under the provisions of the

Act.

[4] MERC (2005) according to the Electricity Supply Code and Other Conditions of Supply

Regulations, 2005 stated about maintaining the property of the distribution licensee. No person

other than an Authorised Representative or any other person authorised under the Act and the

rules and regulations made thereunder shall be authorised to operate, handle or remove any

electrical plant, electric lines or meter or break, remove, erase or otherwise interfere with the

seals, name plates and distinguishing numbers or marks affixed on such property of the

Distribution Licensee placed in the consumer’s premises: Provided that such Authorised

Representative shall not perform any of the acts under this Regulation 7 except in the presence of

the consumer or his representative: Provided further that the Distribution Licensee shall provide

prior intimation to the consumer of the visit of the Authorised Representative to the consumer’s

premises, except where the Distribution Licensee has reason to believe that any person is

indulging in unauthorized use of electricity and / or is committing an offence of the nature

provided for in Part XIV of the Act on such premises.

[5] Anshu Bharadwaj el at mentioned in “Distributed Power Generation: Rural India – A Case

Study” about the rural electricity supply in India that has been lagging in terms of service

(measured by hours of supply) as well as penetration. Only 31% of the rural households have

access to electricity, and the supply suffers from frequent power cuts and high fluctuations in

voltage and frequency, with so-called blackouts and brownouts. The demand-supply gap is

currently 7.8% of average load and 13% of peak demand at current prices, which are heavily

subsidized, on average. In order to bridge this gap and meet anticipated growth, it is necessary to

double the present capacity, i.e., install an additional generation capacity of 1, 00,000 MW by

2012. This would require an investment of Rs. (Rupees) 7,500 billion (approximately $150+

billion) including investments in transmission & distribution. A major bottleneck in the

development of the power sector is the poor financial state of the utilities, which can be

attributed to the lack of adequate revenues and state subsidies for supply to the rural subscribers.

Of the total power generated, only 55% of the kilowatt-hours are billed, and only 41% of this is

collected. The average cost of supply is Rs. 3.04/kWh and the average revenue is only Rs.

14

2.12/kWh. This is due to a skewed tariff policy of subsidizing the power supplied to agricultural

consumers (in some states the power is free to agricultural subscribers!) at the cost of

commercial and industrial consumers. This, coupled with the fact that the electricity supplied to

irrigation pumps is not metered, provides for wasteful consumption and theft. Agricultural

consumption, to the extent estimated, is over 30% of total consumption in the country.

Transmission and distribution (T&D) losses are over 25%, which are due to both technical losses

and theft (termed “commercial losses” in official publications). The State Electricity Regulatory

Commissions in several states have attempted to rectify these tariff imbalances by increasing the

agricultural tariff, only to have the governments reverse these steps due to strong opposition

from farmers. The farmers also complain that the electricity supplied to the rural areas is

intermittent and of poor quality leading to high implicit costs because of damage to their

equipment and downtime. A World Bank study on India’s power sector describes a “vicious

circle” in which the skewed tariff policy and poor financial health of utilities leads to low

investments in upgrading power quality, which, in turn, creates opposition for tariff reforms

among consumers; which only exacerbates the already poor financial condition of the utilities.

The present policies of building large centralized generation and extended distribution networks

are clearly unlikely to solve the problems of rural electricity supply, at least in the near future.

[6] MSEDCL (2009) in its bid document invitation & instructions to bidder (Version - II)

Volume I of V state that the Chief Engineer (Infra) (hereinafter referred to as "the Employer"),

wishes to receive bids for supply, test, transport, construction, erection, testing and

commissioning of sub-transmission lines, power transformers, new substations, augmentation of

existing S/S, 11kV/22kV/33kV lines, distribution transformer centers of varying capacities,

renovation & modernization works and other allied works, including a two year guarantee

(defects liability) period, for works under the Infrastructure Plan Phase-II A Project on single

point responsibility, ”Turnkey” basis as defined in these bidding documents (hereinafter referred

to as "the Works”), and as described in the Bidding Data. The Works are to be carried out at

various sites in the State of Maharashtra, as described in the Bidding Data. For convenience and

efficiency, works are grouped into Tenders on a division wise basis. Bidders may bid for one or

more than one of the contracts (Tenders), as further defined in the bidding documents, and shall

submit separate price bids for each contract. However a bidder is not permitted to submit price

15

bids against more than 10 (Ten) tenders. As regards Technical Bid, the bidder shall submit only

one bid which will be common for all Tenders quoted for. Bidders wishing to offer discounts in

case they are awarded more than one contract will be allowed to do so, provided that those

discounts are included in the Form of Price Bid or submitted in writing before the deadline for

submission. All bids and offers of discounts shall be opened and evaluated simultaneously so as

to determine the bid or combination of bids, including discounts, which offers the lowest

evaluated cost to the Employer. The successful Bidder(s) will be required to start works

simultaneously in all areas within the Division as per the requirements of the bidding document

and to coordinate his activities so that various Works are completed and commissioned in their

entirety so as to provide early benefits to the Employer and its customers. The successful bidder

will be expected to complete the Works, including testing and commissioning, within the Time

for Completion stated in Section 2, Bidding Data, from the date of Notice to Proceed with the

Works. In addition, the successful bidder will be required to guarantee the Works for a period of

24 (twenty four) months after completion of the Works and acceptance by the Employer. Time is

the essence in completing the Works. The successful Bidder will be entitled to an incentive for

early completion, as described in Sub-Clause 8.12 of Section 6, Volume-II, General Conditions

of Contract, if the entire Work, including the testing and commissioning, is completed prior to

the Time for Completion. Bids shall be complete and cover all Works described in the Schedule

of Prices. Any item of works required for completion of useful section shall be deemed to be

included in bidder’s scope irrespective of whether it is specifically mentioned in the price

schedules. Bidder should note that obtaining permissions from statutory bodies such as Railways,

Forest Departments, Local bodies etc., wherever required for execution of works, shall be

entirely in Bidder’s scope. Partial bids, or bids which do not cover the entire scope of the project

will be treated as incomplete and not responsive to the terms and conditions of bidding and are

liable to be rejected.

[7] USAID (2010), in publication prepared by PA Government Services, Inc. on (The Smart Grid

vision For India’s power sector) for USAID mentioned about the engineering economics and

financing. This says that the early 2000s, the Government of India’s policy has been to balance

the development of generation, transmission, and distribution. This policy has served as the

touchstone for a number of financing innovations to deal with the power sector’s large capital

16

investment deficit: unbundling the vertically-integrated power companies to improve their

performance and accountability, attracting increasing private sector participation, expanding all

sources of capital market financing (bonds, listings and privatizations), and continuing public

and multilateral investments in strengthening and expanding transmission and distribution. These

new capital sources are expected to play a role in smart grid roll-outs in India. A number of

problems, however, will continue to hamper smart grid deployments and must be factored in

during project design, including the determination of the financial feasibility of investing in

projects. The poor balance sheets of many electric utilities, coupled with the lack of an efficient

procurement and project management culture at most State Electricity Boards, has resulted in

inadequate investments in state transmission and distribution systems. In addition, many of the

utilities that are undertaking projects under the Restructured Accelerated Power Development

and Reform Programme lack management experience with R-APDRP; this lack of experience

spans the full project cycle, from formulation to appraisal, procurement, construction supervision

and commissioning. As a result of the lack of automation (computerization and

telecommunications) in their businesses, the distribution companies also have a serious skills

deficit in information and communications technology (ICT). Many will also be hard pressed to

attract qualified talent to join bureaucracies that are still dominated by work cultures and practices of the

past. The publication further explained about smart grid as what exactly is smart grid? Simply

put, a smart grid is the integration of information and communications technology into electric

transmission and distribution networks. The smart grid delivers electricity to consumers using

two-way digital technology to enable the more efficient management of consumers’ end uses of

electricity as well as the more efficient use of the grid to identify and correct supply demand-

imbalances instantaneously and detect faults in a “self-healing” process that improves service

quality, enhances reliability, and reduces costs. Thus, the smart grid concept is not confined to

utilities only; it involves every stage of the electricity cycle, from the utility through electricity

markets to customers’ applications.

[8] A.S Pabala (2011) mentioned in his book (Electric Power Distribution) significance of

distribution automation. The demand on electric power supply in India has changed drastically,

both qualitatively and quantitatively. With increasing development the dependence on electric

power supply has increased considerably .While demand has increased, the need for a steady

17

power supply with minimum power interruptions and fast fault restoration has also increased. To

meet these demands, automation of the power distribution system involved in controlled

networks are equipped with facilities for remote operation (sensors motor drives or

actuators).The control interface equipment (RTU) must with stand extreme climatic conditions.

Also, control equipment at each location must have a dependable power sources. Distribution

Automation (DA) enables an electric utility to remotely monitor coordinate, and operates

distribution network in a real time mode. The core ingredient are local intelligence, data

communication and supervisory control , and monitoring .Automation has the net effects of

increasing the overall level of efficiency of the distribution system, in addition to improving

overall service. It will become more active in the future to deliver maximum value to consumer.

Smart grids will be soon adding consumer values. Open access will grow. Implementation of

best practice will optimise the financial, human and natural capitals for attaining excellence and

sustainability of electric power distribution system. In the Metering, Billing and collection:

Electricity metering is undergoing its greatest transformation. Smart metering and billing is

moving closer to full automation, computerisation and smart grid deployments, promising major

energy savings. In the Natural Distribution system:-Sustainable distribution system development

is the only future focus choice. We are to reinvent energy resource and their use.

[9] MERC (2011) in Multi Year Tariff regulations, 2011 stated distribution losses. The

Distribution Licensee shall be allowed to recover the approved level of distribution losses arising

from the Retail Supply of electricity, excluding wheeling losses :Provided that the Commission

may stipulate a trajectory for distribution losses for Retail Supply of electricity in accordance

with these Regulations as part of the Order on the Business Plan filed by the Distribution

Licensee: Provided that any variation between the actual level of distribution losses and the

approved level shall be dealt with, as part of the Mid-term Performance Review and at the time

of final truing up at the end of the Control Period.

18

[10] Budget (2012), The Power sector reforms, Energy, Infrastructure and Communications

Budget 2012-13 stated about Improving Distribution and Opening Bulk Supply to Competition:

The next step is to introduce competition and open access at bulk level. Most power distribution

is still the monopoly of SEBs, with mounting losses and poor services. Three different models of

restructuring are possible; with States adopting whichever model works best and setting-up

surrogate competition amongst these modes: (a) public private partnership (PPP) mode with open

access. Long-term concessions granted to private distribution companies, incorporating high

investment requirements, performance standards, tariffs subject to regulation, and permitting

bulk consumers open access to networks (similar to telecom). (b) Distribution franchisee mode.

Competitive bidding to select franchisee operators, where ownership of assets remains with state

distribution companies and licencee supplies bulk electricity to franchisee at predetermined

prices, franchisee retains predefined portion of revenues and pays distribution companies annual

rate bids, T&D losses are monetized and borne by distribution companies with incentives to

lower them and tariffs remain the same as in larger licensing area. (c) Performance-based State

electricity distribution companies. With management independence and overhaul, and strict

commercial performance standards, some stronger state distribution companies could potentially

provide competitive services, with bulk consumers again permitted open access to networks.

2.2 Research Methodology adopted

The report has been compiled on the basis of secondary data sources. Data on

Infrastructure Plan Phase I, Infrastructure Plan Phase II, Infrastructure Plan Phase IIA,

Infrastructure Plan Phase IV, Infrastructure Plan Phase VIC, and Infrastructure Plan Phase IIB

have been collected from the information available on the internet of MSEDCL website, MERC

website, reports and periodical journals and bid documents of Infra Plan department.

http://www.google.co.in/url?sa=t&rct=j&q=power%20sector%20distribution%20infrastructure%20in%20india&source=web&cd=35&cad=rja&ved=0CDwQFjAEOB4&url=http%3A%2F%2Fexim.indiamart.com%2Feconomic-survey10-11%2Fpdfs%2Fechap-11.pdf&ei=z8FAUOaoC4rYrQfDw4DACA&usg=AFQjCNGVwOxUErOSmBPjCANGBVsZZmamAg


19

CHAPTER-3

PHASE WISE DETAILS & PROCESS FLOW OF

INFRASTRUCTURE PLAN PROJECTS

3.1 Phase wise details of Infrastructure Plan Projects

The Infra Plan projects are spread out with 81 tenders and 120 divisions. The MERC has

provided in-principle clearance of Rs 971590.88 lakhs (approximately) through financing

agencies such as Power Finance Cooperation, Rural Electrification and Raigad Bank. The project

completion period is two years (approximately) from the date of issuance of “Letter of Award”

to the turnkey contractors. List of major works to be covered under Infra Plan is given below.

(Table No.3.1: - Work to be carried out in Infrastructure Plan)

Sr. No Description Quantity / Measurement

1 New Sub-stations 33/11KV 556 nos./ 3470 MVA

2 Augmentation of Sub-stations 313 nos. / 733 MVA

3 Additional Power Transformer 315 nos. / 1700 MVA

4 New HT Lines 50768 Km

5 New LT Lines 17018 Km

6 New DTCs Installation 67072 nos. / 5063 MVA

7 HVDS DTCs Installation 23356 nos. / 584 MVA

3.1.1 Infrastructure Plan Phase I

In Infrastructure Plan Phase I, 17 tenders (36 Division) where taken with estimated

project cost of Rs 3,057.18 crores. From 17 tenders only 11 tender (25 Divisions) were issued

Letter of Award amounting to Rs 244283.44 lakhs. Out of balance 6 tenders (12 Divisions), 3

tenders (6 Division) re-floated under Infrastructure Plan Phase II and remaining 3 tenders (6

Divisions) re-floated under Infrastructure Plan Phase IIA. The 80% loan (Rs 159537.94 lakhs) of

principle cost (Rs 199422.42 lakhs) approved by MERC is issued by funding agencies. The

contribution of funding agencies such as PFC is (Rs 85325.5 lakhs), REC (Rs 66905.39 lakhs)

20

and RGB (Rs 7307.07 lakhs), so that total loan amounts to (Rs 159537.94 lakhs). Remaining

20% is equity of government of Maharashtra State on principle cost (Rs 199422.42 lakhs)

approved by MERC.

(Table No.3.1.1.1:- Cost analysis of Infrastructure Plan Phase I)

Sr. No Project cost approval Process (Rs in Lakhs)

1 Cost as per DPR submitted to MREC 269617.73

2 Cost approved in principle by MERC 199422.42

3 Value of Contract Awarded i.e. (LOA) 244283.44

4 Amount of loan sanctioned 159537.94

(Table No3.1.1.2:- List of Zones/Circles/Divisions covered in Infrastructure Plan Phase I)

Sr.

no.

Tender No. Zone Circle Division

1 1 Kolhapur Kolhapur Gadhinglaj,

Kolhapur (R-I)

2 3 Baramati Solapur Solapur(R),

Solapur (U)

3 6 Nashik Ahmednagar Sangamner

4 8 Aurangabad Aurangabad(R)

Jalna

Aurangabad(R),

Kannad, Jalna-II

5 10 Latur Osmanabad, Latur Osmanabad, Latur

6 12 Latur Latur Nilanga, Udgir

7 14 Kalyan Pen Panvel(R ), Goregaon

8 15 Pune (U) Ganeshkhind,

Rastapeth

Bhosari,Kothrud,

Bundgarden

9 16 Pune / Baramati Pune Rural /

Baramati

Baramati,Kedgaon,

Manchar

10 17 Nagpur,

Nagpur (U)

Gadchiroli,

Bhandara,

Bramhapuri,Sakoli,

Nagpur Division – II

21

Nagpur(R)

11 13 Nanded Nanded Bhokar ,Nanded

Total Divisions: 25

3.1.2 Infrastructure Plan Phase II

In Infrastructure Plan Phase II, 53 tenders (82 Divisions + 6 Divisions from Infrastructure

Plan Phase I) were taken with estimated project cost of Rs 6718.61 crores. From 53 tenders only

38 tenders (61 Divisions) were issued Letter of Award amounting Rs 581652.92 lakhs. Balance

15 tenders (27 Divisions) refloated under Infrastructure Plan Phase IIA. Loan of 80%

(Rs 364613.15 lakhs) of principle cost (Rs 455766.44 lakhs) approved by MERC is issued by

funding agencies. The contribution of funding agencies such as PFC is (Rs 245539.8 lakhs),

REC (Rs 115290.2 lakhs) and RGB (Rs 3783.17 lakhs), so that total loan amounts to

(Rs 364613.15 lakhs). Remaining 20% is equity of Government of Maharashtra state on

principle cost (Rs 455766.44 lakhs) approved by MERC.

(Table No.3.1.2.1:- Cost Analysis of Infrastructure Plan Phase II)

Sr. No Project cost approval Process (Rs in Lakhs)





(Table No.3.1.2.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase II)

Sr.

No.


1 44 Konkan Ratnagiri Ratnagiri,Chiplun

2 45 Konkan Sindhudurg Kankavali, Kudal

3 60 Nashik Nashik Urban Nashik (U) – II

22

4 62 Nashik Nashik R Chandwad

5 63 Nashik Nashik R Malegaon Rural

6 64 Nashik Nashik R Nashik Rural

7 66 Nashik Nashik Urban Nashik (U) – I

8 26 Baramati Solapur Barshi *

9 27 Kolhapur Sangli Vita *

10 29 Amravati Amaravati Achalpur

11 30 Amravati Amaravati Amravati R, Amravati U

12 31 Amravati Amaravati Morshi

13 32 Amravati Buldhana Buldhana

14 33 Amravati Buldhana Khamgaon

15 34 Amravati Buldhana Malkapur

16 36 Nanded Jalna, Parbhani,

Hingoli

Jalna I, Hingoli, Parbhani

17 47 Nagpur Chandrapur Chandrapur, Ballarshah,

Warora

18 49 Nagpur Wardha Arvi, Hinganghat, Wardha

19 50 Nagpur (U) Nagpur (R) Katol, Nagpur Dn. I

20 51 Nagpur (U) Nagpur U Congress Nagar, MIDC

Nagpur

21 57 Jalgaon Jalgaon Chalisgaon

22 65 Jalgaon Dhule Shahada *

23 67 Pune Ganeshkhind Pimpri, Shivajinagar

24 68 Pune Pune (R) Mulshi, Rajgurunagar

25 24 Baramati Solapur Pandharpur *

26 35 Amravati Yavatmal Pandharkawda, Pusad,

Yavatmal

27 42 Kalyan Kalyan- I Kalyan –E, Dombivali

28 46 Nagpur Bhandara Bhandara, Gondia

29 52 Nashik Ahmednagar Karjat

23

30 54 Jalgaon Dhule Dondaicha

31 56 Jalgaon Jalgaon Bhusawal UCR, Jalgaon

UCR

32 58 Jalgaon Jalgaon Pachora, Savda

33 59 Jalgaon Jalgaon Dharangaon

34 61 Nashik Nashik R Malegaon UCR

35 69 Pune Rastapeth Nagar Road, Rastapeth

36 20 Kolhapur Kolhapur Kolhapur Urban, Kolhapur

Rural II

37 21 Kolhapur Kolhapur Jaysingpur, Ichalkaraji

38 28 Amravati Akola Akola Rural, Washim

* refloated tenders

Total Divisions: 61

3.1.3 Infrastructure Plan Phase IIA

In Infrastructure Plan Phase IIA, 33 tenders (27 Divisions from Infrastructure Plan Phase

II+ 6 Divisions from Infrastructure Plan Phase I+2 New Divisions) where taken with estimated

project cost of Rs 2565.66 crores. From 33 tenders only 27 tender (28 Divisions) where issued

Letter of Award amounting to Rs 225067.67 lakhs. Out balance 6 tenders (7 Divisions), 3 tenders

(3 Divisions) refloated under Infrastructure Plan Phase IV, and 2 tenders (3 Divisions) refloated

under Infrastructure Plan Phase V or Infrastructure Plan Phase VIC & balance 1 tender (1

Division) has been cancelled. Loan of 80% (Rs 176717.50 lakhs) of principle cost (Rs 220896

.89 lakhs) approved by MERC is issued by funding agencies. The contribution of funding

agencies such as PFC is (Rs 100258.50 lakhs), REC (Rs 76459.05 lakhs), so that total loan

amounts to (Rs 176717.50 lakhs). Remaining 20% is equity of Government of Maharashtra State

on principle cost (Rs 220896.89 lakhs) approved by MERC.

(Table No.3.1.3.1:-Infrastructure Plan Phase IIA)

Sr.No Project cost approval Process (Rs in Lakhs)


24




(Table No.3.1.3.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase IIA)

Sr.

no.


1 81 Kalyan Vasai Palghar

2 82 Kalyan Vasai Vasai

3 84 Kolhapur Sangli Islampur

4 85 Kolhapur Sangli Sangli Urban

5 87 Baramati Satara Karad

6 88 Baramati Satara Phaltan

7 98 Nashik Ahmednagar Ahmednagar UCR

8 99 Jalgaon Dhule Dhule (R)

9 102 Pune Rastapeth Padmavati

10 86 Kolhapur Sangli Sangli (R)

11 91 Baramati Solapur Akluj

12 97 Nashik Ahmednagar Ahmednagar Rural

13 92 Latur Beed Ambejogai

14 93 Latur Beed Beed

15 89 Baramati Satara Satara

16 90 Baramati Satara Wai

17 94 Nanded Beed Degloor

18 95 Latur Osmanabad Tuljapur

19 77 Bhandup Vashi Panvel U

20 96 Nagpur Gadchiroli Allapali,Gadchiroli

21 76 Bhandup Vashi Nerul

22 75 Bhandup Thane (Urban) Wagle Estate

23 78 Bhandup Vashi Vashi

25

24 74 Bhandup Thane (Urban) Thane (Urban)

25 79 Kalyan Kalyan-II Kalyan-R

26 71 Amravati Akola Akola U

27 73 Bhandup Thane (Urban) Kalwa

Total Divisions: 28

3.1.4 Infrastructure Plan Phase IV

In Infrastructure Plan Phase IV, 3 tenders (3 Divisions) where taken with estimated

project cost of Rs 15976.02 lakhs with Letter of Award (Rs 14697 .94 lakhs) .The loan of 80%

(Rs 11739.36 lakhs) of principle cost (Rs 14674.20 lakhs) approved by MERC is issued by

funding agencies. The contribution of funding agencies such as PFC is (Rs 7134.08 lakhs), REC

(Rs 4605.27 lakhs), so that total loan amounts to (Rs 11739.36 lakhs). Remaining 20% is equity

of Government of Maharashtra state on principle cost (Rs 14674.20 lakhs) approved by MERC.

(Table No.3.1.4.1:-Infrastructure Plan Phase IV)

Sr.No Project cost approval Process (Rs in Lakhs)

1 Cost as per DPR submitted to MERC 16324.40




(Table No.3.1.4.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase IV)

Sr.

No.


1 110 Jalgaon Dhule Dhule UCR

2 111 Jalgaon Nandurbar Nandurbar

3 112 Pune Rastapeth Parvati

Total Divisions: 3

26

3.1.5 Infrastructure Plan Phase VIC

In Infrastructure Plan Phase VIC, 2 tenders (3 Divisions) where taken with estimated

project cost of Rs 87.32 crores. The loan of 80% (Rs 8508.50 lakhs) of principle cost

(Rs 10635.62 lakhs) approved by MERC is issued by funding agencies, so that total loan

amounts to (Rs 8508.50 lakhs) and remaining 20% is equity of Government of Maharashtra state

on principle cost (Rs 10635.62 lakhs) approved by MERC.

(Table No.3.1.5.1:- Infrastructure Plan Phase VIC)

Sr.

No.

Project cost approval Process (Rs in Lakhs)





(Table No.3.1.5.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase VIC)

Sr. no. Tender No. Zone Circle Division

1 142 Kalyan Kalyan- II Ulhasnagar I

2 Kalyan Kalyan- II Ulhasnagar II

3 141 Kalyan Vasai Virar

Total Divisions: 3

4 143* Pune Ganeshkhind, Rastapeth Bhosari, Kothrud,

Bundgarden

*Refloated Balance works of Tender No. T-15

27

3.1.6 Infrastructure Plan Phase VID

Infrastructure Plan Phase VID consist of re-floated balance work of 2 tenders

(3 Divisions) with estimated project cost (Rs 9525.70 lakhs).The two tenders, tender no.3 and

tender no.32 are re-floated balance work of Infrastructure Plan Phase I and Infrastructure Plan

Phase II respectively. The loan of 80% (Rs 19761.00 lakhs) of principle cost (Rs 24701.25

lakhs) approved by MERC is issued by funding agencies, so that total loan amounts to

(Rs 19761.00 lakhs) and remaining 20% is equity of Government of Maharashtra State on

principle cost (Rs 24701.00 lakhs) approved by MERC.

(Table No.3.1.6.1:- Infrastructure Plan Phase VID)

Sr. No. Project cost approval Process (Rs in Lakhs)





(Table No.3.1.6.2:-List of Zones/Circles/Divisions covered in Infrastructure Plan Phase VID)

Sr. no. Tender

No.

Zone Circle Division

1 145* Baramati Solapur Solapur R & U

2 146** Amravati Buldhana Buldhana

Total Divisions: 3

*Refloated Balance works of Tender No. T-3

**Refloated Balance works of Tender No. T-32

28

3.1.7 Infrastructure Plan Phase IIB

Infrastructure plan Phase IIB consists of the Turnkey Contract for Supply, errection &

Commissioning of Station Mounted Capacitor Banks in Maharashtra State with estimate project

cost (Rs 6266.00 lakhs) against which Letter of Award of Rs 4574.00 lakhs is issued.

3.2 Process Flow of Infrastructure Plan Projects

3.2.1 DPR Submission and Approval Process

In order to facilitate the work of distribution, MSEDCL have divided geographic territory

of Maharashtra State approximately into, (1045) Sections, (608) Subdivisions, (131) Divisions,

(42) Circles and (14) Zones. The formation of numbers of (Sections, Subdivisions, Divisions,

Circles and Zones) depends upon the consumer norms given in Annexure I.

(Figure 1:- DPR Submission and Approval Process)

(1)The Detail Project Report (DPR) or Project Proposal is prepared by the Assistant Engineer or

Deputy Executive Engineer at Subdivision Office and it is submitted to Division Office.

(2) Scrutiny of DPR is done by the Assistant Engineer. It is audited by the Accountant at

Division office. The DPR is then recommended by Executive Engineer (Operation and

Maintenance). If there is any query it is resolved by concerned authorities at Division Office

Subdivision Office Division Office Circles Office

Zone Office

Head Office

Query Query

Query

Query

29

respectively or sent back to Subdivision office for recheck. The corrected DPR is then submitted

to the Circle Office along with the covering letter.

(3) At Circle Office the scrutiny of DPR is done by the Assistant Engineer .After scrutiny of

DPR, it is audited by Deputy Manager (Finance & Administration). The DPR is then submitted

to Executive Engineer (Administration) for his approval. If there is any query it is resolved by

concerned authorities in hierarchy of Circle Office respectively or it send back to the Division

Office for correction. After recommendation from Circle Office DPR is submitted to the Zonal

Office.

(4) At Zonal Office DPR is verified by Assistant Engineer (Infra Plan), Deputy Executive

Engineer (Infra Plan) and Executive Engineer (Infra Plan). The DPR is then recommended by

Chief Engineer to Head Office. If there is any query it is resolved by concerned authority in

hierarchy of Zone Office respectively or it is send back to the Circle Office for correction.

(5) At the Head office the scrutiny of DPR is done by Deputy Executive Engineer (Infra Plan) or

Assistant Engineer (Infra Plan). After scrutiny DPR is submitted for approval to the Executive

Engineer (Infra Plan), Superintendent Engineer (Infra Plan) and Chief Engineer (Infra Plan).The

consolidated DPR is then submitted to competent authority like Executive Director (Projects)

and Director (Projects). If there is any query it is resolved by concerned authority in hierarchy of

Head Office respectively or it is sent back to the Zonal Office for correction.

3.2.2 Financial Institutes

1) If the estimated cost of DPR is less than 10 crores then Chief Engineer (Infra Plan) submits

the DPR to concerned Zonal Office for floating the tender.

2) If the estimated cost of DPR is more than 10 crores then the DPR is sent for approval in board

meeting.

30

3) Once the estimated cost of DPR gets approval in board meeting, the DPR is submitted to

MERC for its approval. MERC carry out scrutiny of DPR and gives its approval. The 80% of

approved project cost is taken from Financial Institutions (Funding Agencies) as loan and 20% of

Project cost is equity of Government of Maharashtra.

4) After above administrative approval, proposals or schemes are sent to Financial Institutions

PFC or REC or Raigad Bank for the 80% loan on total cost of project approved by MERC.

5) Each Financial Institution has its own terms and condition for granting loan. If there is any

query, concerned authorities of Infra Plan at Head Office are contacted for clarification. If there

is no query, proposal is accepted by the Funding Agency managers and experts. The interest on

loan is paid back at agreed rate (rate of interest on loan is different for different Financial

Institutions and may change as specified in terms and conditions of loan document) and paid

back in fixed time-period (time-period for loan payback is different for different Financial

Institutions and may change as specified in terms and conditions of loan document).

31

E-Tendering Floating

by concerned CE

(Infra Plan)

EE (Civil) for

availability of

land

Application to MERC for approval

Request to GoM

for 20% Equity

Application to Financial Institutes for 80% loan

CE (Infra Plan) Head Office Submitting DPR/

Scheme to Financial Institute.

Board Meeting

Any Queries?

Receipt of Funding Agency Manager

Concerned Funding Agency Expert

Scrutiny of DPR/Scheme -Techno economical

scrutiny

Funding Agency Manager

Concerned CE-Head Office Arrangement with

Financial Institutes

E-Tendering

DPR up to

10 (crores)

(Figure No. 2:-Flow chart of the Financial Institute Process)

YES

NO

YES

NO

Is draft approved? NO

YES

32

3.2.3 E-Tendering Registration Process

MSEDCL has implemented Electronic Tendering system. This caters to the tender related

to works, projects & infrastructure. For participation in the Tenders to be called by MSEDCL,

online contractor registration is mandatory. Currently this system is being made operational with

regard to purchases, works, projects and infrastructure tenders floated by MSEDCL. The

E-Tendering process steps with flow chart are discussed below.

(Figure No.3:-Flow chart of the E-Tendering Registration Process)

New Contractor/Bidder Opens Home Page of MSEDCL E-Tendering

Submission of Certificates & Document Verification

New Contractor /Bidders Submit Registration fee

Approval of location by Account Officers

Approval of location by RA Officer after original verification

Approval of RA and CA Officers

TCS system generated email is sent to the new Contractor containing Authentication Pin.

Creating certificate enrollment request with letter of authority duly signed by new contractor

Issuing of token (Dongle) & CD to new contractor

Start downloading digital signature certificates

33

(1) To get registered as new contractor, the contractor has to register himself with the

E-Tendering website of MSEDCL (http://works.mahadiscom.in/eTender/etender)by filling all

required fields online with registration fee of Rs.2000.00 (pay mode: on-line pay, DD or Cash).

After completion of one year from date of registration, the contractor will have to renew the

registration. Registration renewal fees will be Rs.1000/- per year (Non-refundable). The

Contractor Registration Charges and the renewal fee indicated above may undergo change

without prior notice and Contractors are required to pay the same as applicable at the time of

registration.

(2) This registration can be done at Zone /Circle or Division Level. Contractor can select any

convenient location for completing registration process .The Contractor has to submit the

certificate request form which is available on home page portal of E-tendering website of

MSEDCL under the header “If you are a Contractor” by enclosing following documents in two

sets duly attested/ notarized and originals for verification along with covering letter of company

letter head. Documents required for verification:

Company Registration Certificate/Partnership Deed/Shop Act/Latest Balance Sheet

depending upon the Company Type.

Sales Tax & Central Sales Tax Certificate

Company PAN. In case of Proprietor, Digital Certificate Holders PAN.

Electrical License for Electrical Category.

Power of Attorney/ Board Resolution in the Name of Digital Certificate Holder.

Identification Passport / Driving License in the Name of Digital Certificate Holder as

address proof.

(3) The contractor has to get this amount approved from the respective location Account

Officer in charge.

(4) After verifying the documents, the contractors status will be made active by the respective

location RA Officer and the contractor will be provided with token (Dongle) and CD.

http://works.mahadiscom.in/eTender/etender

34

(5) The contractor has to install the software from the CD provided for the first time. Once the

driver is installed, the contractor can insert the token into a USB drive and has to create his token

password which is also one time password creation.

(6) Then the contractor should follow the steps mentioned below.

a) Login with the User ID and Password created by contractor at the time of online

registration.

b) Click the “Profile” tab

c) Click on “Manage Certificate” tab

d) Click on “Enroll”

e) Select Cryptograph Service Provider for his Token Type

f) Window will appear requesting the Token password.

g) Click on “Generate Request” tab

(7) After that Certificate Enrollment Request form with letter of authority is displayed on the

next window, the contractor will be taking the Print copy of Certificate Enrollment Request

form.

(8) The contractor has to sign the Letter of Authority and submit the Certificate Enrollment

Request form with letter of authority to the respective location RA Officer.

(9) After getting the approval from the respective location RA and CA Officer, email is sent to

contractor which is TCS system generated with an authentication PIN.

(10) Then the contractor has to go through following with steps mentioned below

a) Login with the User ID and Password created by contractor at the time of online

registration.

b) Click the “Profile” tab

c) Click on “Manage Certificate” tab

35

i) Click on “Download Digital Certificate” tab

j) Requested Certificate Enrollment Number window will be displayed.

k) Click the Requested Certificate Enrollment Number

l) Enter the authentication PIN received on your mail. Download the digital Signature

certificate in token.

3.2.4 Tendering Process

For convenience and efficiency, works are grouped into tenders on a division-wise basis.

Bidders may bid for one or more than one of the contracts (tenders), as further defined in the

bidding documents, and shall submit separate price bids for each contract. However a bidder is

not permitted to submit price bids against more than 10 (Ten) tenders. As regards Technical Bid,

the bidder shall submit only one bid which will be common for all tenders quoted for. Bidders

wishing to offer discounts in case they are awarded more than one contract will be allowed to do

so, provided that those discounts are included in the form of Price Bid or submitted in writing

before the deadline for submission. All bids and offers of discounts shall be opened and

evaluated simultaneously so as to determine the bid or combination of bids, including discounts,

which offers the lowest evaluated cost to the employer.

(1) After approval of the DPR through competent authority and making availability of fund by

MERC for DPR, the bids documents are prepared for the respective DPR and are floated/

published through E-Tendering process which then termed as “Tender”.

(2) The MSEDCL users (users are up to sub-division level) are logged into E-Tendering portal.

Once logged in, the MSEDCL user creates the first version of the “TENDER” with punching all

the relevant field pertaining to that “TENDER” such as “TENDER” name, code, type

(CAPEX/REVENUE), brief note, estimated tender cost, EMD, tender fee, sale opening date, sale

closing date, Pre-bid meeting date, last date for submission, technical opening date, commercial

opening date, office address for correspondence etc. After punching all above data, the MSEDCL

user uploads the Bid documents and then publishes the above “TENDER” in local Newspaper

and on company website.

36

(3) The MSEDCL user also has to form the committee for the “TENDER” which includes the

Chairman (MSEDCL user) and Accountant. Forming the Committee means – The “TENDER” is

opened by Accountant first (only his presence in terms of joining the Chairman (MSEDCL user)

& then the Chairman (MSEDCL user) joins and opens the Bids (Technical /Commercial).

(4) Once the tender is floated on-line, the interested contractors (Registered Contractors or New

Contractors) approach to concerned office / department. The New Contractors are requested to

get registered. Then the registered contractor should purchase the floated tender by cash or

online. The payment receipt is then verified by concerned accounts department from where the

tender is floated and on verification the bidder is authorized to view the particular tender for

which payment has been made. The tender fee excluding tax is below.

(Table No.3.2.4.1:- Tender fee excluding tax)

(5) The bidder is advised to visit the site and study the bid document thoroughly, and is requested

to submit any questions in writing or by fax, to reach the employer not later than one week

before the pre-bid meeting. The queries at the contractor end are solved by the MSEDCL user

and Higher Authority on the Pre-bid meeting date mentioned while floating the “TENDER”.

Once the Queries are clarified by MSEDCL user, the MSEDCL user uploads the modified

documents and also makes time extensions, if required on the E-Tender Portal with

ADDENDUMS on the Company website. The contractor starts bidding “TENDER” till last date

of submission. Once the last date and time gets lapsed, then the MSEDCL user opens the

Sr. No Tender Value (Rs in Lakhs) Tender Fee (Rs)

A Less than 5 500

B 5 and above & less than 20 1000

C 20 and above & less than 50 2500

D 50 and above & less than 500 5000

E 500 and above & less than 1000 10000

F 1000 and above 25000

37

technical Bid Documents after joining by the Accountant user with prior permission of the

Competent Authority.

Verification by Account Department, Contractor authorized to down load the TENDER document.

Formation of Tender Committee

Tender is purchased by interested contractor by cash /D.D/ online payments

MSEDCL user login, Create first version of Tender & Published in paper & MSEDCL portal

Preparation of bid document for respective DPR

Is Queries raised by

contractor?

Modified version of Tender published with extension of date if any

Queries clarified from MSEDCL end.

Contractor start bidding

Is submission date and

time elapsed?

Technical evaluation report Broad approval for opening of bid

Technical bids opening

A

NO

NO

YES

YES

38

(Figure No.4:-Flow chart of the Tendering Process)

(6) The MSEDCL user will open the technical proposals in the presence of bidders’

representatives who choose to attend at the address, date and time designated in the Bidding data.

After downloading the technical bids submitted by the contractors, the MSEDCL user starts

evaluating manually by taking the print of downloaded documents. In evaluation process the

evaluator checks the substantially responsive bid. A substantially responsive bid is one which

conforms to all the terms, conditions and specifications of the bidding documents, without

material deviation or reservations .The evaluation report is then sent to audit for verification. The

price proposals/commercial bids will remain unopened and will be held in the custody of the

MSEDCL user until the time of opening of the price proposals.

(7) The MSEDCL user with Board approval will open the price proposals/commercial bids of all

bidders who submitted responsive technical proposals at the time and date at the location advised

to the bidders. Price proposals shall be opened at the date and time indicated in the bidding data,

or at such other time as may be notified to the responsive bidders. The MSEDCL user then starts

downloading the commercial bids submitted by contractors and starts evaluating manually by

taking the print of downloaded documents. The evaluation report is sent to audit for verification

.The bidders’ names, the bid prices, the total amount of each bid, any discounts, and such other

Is Technically

Qualified?

Opening of price bid

Letter of Award issued to successful bidder

Board approval

No Opening of price bid

A

NO

YES

39

details as the employer may consider appropriate, will be announced and recorded by the

employer at the opening.

(8) Prior to expiry of the period of bid validity prescribed by the MSEDCL user, the MSEDCL

user will notify the successful bidder with board approval by fax, confirmed by registered letter,

or through E-tendering website that his bid has been accepted. This letter is called the Letter of

Award (LOA). Once the LOA is issued, MSEDCL user makes contractors status as awarded on

e-tender portal. The letter of award shall name the sum which the employer will pay the

contractor in consideration of the execution, completion and guarantee of the works by the

contractor as prescribed by the contract. The MSEDCL user will send the bidder the form of

contract agreement provided in the bidding documents, incorporating all agreements between the

parties.

3.2.5 Milestone Chart Preparation

Milestone means the time as stated in the Appendix to Tender for completing &

commissioning of complete sections or for completing a designated percentage of the total value

of the works, calculated from the commencement date. The flow chart of the Mile Stone

Preparation chart is discussed below.

(Figure No.5:-Flow chart of the Milestone Preparation Chart Process)

LOA Issued to Successful Bidder (L-1)

Preparation of Mile Stone Chart

Mile Stone Can be Changed In Case of Variation

New Milestone Chart

40

1) After the issue of Letter of Award to the successful bidder the successful bidder refers

indicative Milestone Chart in the Appendix to Tender provided by the Employer. It broadly

describes the monthly progress targets that the contractor is expected to achieve in order to

maintain the pro-rata progress that will be necessary to ensure successful completion of the

whole of the works within the scheduled time for completion.

2) The contractor shall develop his detailed construction programme in consultation with the

employer’s representative so as to clearly describe the milestones that are to be achieved during

each quarter of the construction period. The Milestones, as agreed and approved by the

employer’s representative, will form the basis for assessing the contractor’s progress during the

construction period. The employer’s representative will undertake comprehensive reviews of the

contractor’s progress every month, measured from the commencement date to determine if the

contractor has carried out the work in conformity with the approved construction programme and

agreed Milestones.

3) The employer’s representative shall scrutinize, modify if required and approve such proposed

construction program, in consultation with the contractor. The employer reserves the right to

request a change in the priority schedule for the activities as given by the contractor based on

mutual agreement

3.2.6 Material Inspection Process

Materials means things of all kinds (other than Plant) to be provided and incorporated in

the permanent works by the contractor, including the supply-only items (if any) which are to be

supplied by the contractor as specified in the contract.

41

(Figure No.6:-Flow chart of the Material Inspection Process)

Material requirement as per Milestone

Vendor

Factory Inspection

Material arrived at site store

of turnkey contractor

Nomination Letter as per Inspection

Scheduled

Inspection authorization request email

from contractor to concerned SE (Infra) /

Dir-P/Ed-P/ CE (Infra)

Inspection authorization request email

from contractor to concerned SE (Infra)

Nomination to concerned person

Inspection Call submitted

from vendor to contractor

Vendor location outside Maharashtra

including Mumbai Region

Vendor Location with in Maharashtra

Project Execution

Monitoring & Controlling

Material Dispatch

Report Submission

Approval

Is material as per

MSEDCL?

NO

Yes

A

A

Invoice from Contractor

42

1) The material requirement as per the Mile Stone is prepared. The contractor shall guarantee

that all plant, equipment and materials will be new and free from defects in materials and

workmanship and suited for its normal operating conditions. It is expected that the Bidder shall

quote for supply of equipment of best makes which confirm to the highest national and

international standards. All plant and equipment supplied for sub-stations shall be designed so

that the completed facilities will be compatible with future SCADA operating systems,

irrespective of whether such requirement is specifically included in the employer’s specifications

or not.

2) Plant and materials supplied from within India shall be procured only from vendors, fulfilling

the criteria for approval of vendors as provided in Section 9 of Vol. III Price variation formulae

[6] and criteria for approval of vendors of Bidding Documents. Annual turnover of the vendors

during any one of the last three years shall satisfy the minimum criteria fixed as below for supply

of different types of material.

(Table No.3.2.6.1:- Minimum Turn Over of Vendors)

3) The inspection call is raised from vendor or contractor for the inspection of the material is

made to employer. If vendor location is inside Maharashtra, inspection authorization request

from contractor is made to employer. The nomination of concerned person as employer

representative [Superintending Engineer (Infra Plan)] near to vendor site for inspection is made.

Local Superintending Engineer (Infra Plan) will inspect the material under his jurisdiction or will

forward this call to the Superintending Engineer (Infra Plan) under whose jurisdiction the

Sr. No Item proposed to be supplied by vendor Minimum Annual Turn Over ( Rs. Crores)

1 Power Transformer 25

2 Distribution Transformer 25

3 33 kV /22 /11kV,Vaccum Circuit Breaker 50

4 HT XLPE power cable 40

5 Capacitors for station type and pole

mounted type HT capacitor banks

5

6 LT XLPE cables 20

43

material is to be inspected. Once the inspection is finished, the inspection report will be sent to

concerned local Superintending Engineer (Infra Plan) and Chief Engineer (Infra).The factory

inspection is done by employer’s representative and material as per MSEDCL specification is

checked and reported. If the material is as per MSEDCL specification approval is given.

Dispatched material arrived at site is stored at contractor’s store. Billing and invoice is made for

material. The inspection is also carried out by third party.

4) For the vendor location is outside Maharashtra including Mumbai. The inspection call is

raised by the vendor/contractor to the office of the Director (Projects) or Chief Engineer (Infra

Plan).An inspection scheduled is prepared every month on approval from the Executive Director

(Projects).The office of the Director (Projects) deputes the employer representative for inspection

outside Maharashtra (including Mumbai Region) as per the inspection scheduled. The concerned

officer will inspect materials and submit the inspection report to concerned Superintending

Engineer (Infra Plan) with a copy to the office of Director (Projects) or Executive Director

(Projects) or Chief Engineer (Infra Plan). The factory inspection is done by employer’s

representative (Superintendent Engineer of Infra Plan near to vendor site) and material as per

MSEDCL specification is checked and reported. If the material is as per MSEDCL specification

approval is given. Dispatched material arrived at site is stored at contractor’s store. Billing and

invoice is made for material. The inspection is also carried out by third party.

3.2.7 Billing Process

The payment is made to the contractor by 70% payment, 20% payment and 10% payment.

1) Once major activities are completed contractor is eligible to receive 70% payment of the

contract amount against Work Completion Certificate (WCC). He is required to obtain certified

WCC from concerned JE (Infra Plan) at Division Office.

2) On the basis of certified WCC, running account bills should be prepared by contractor and

submitted to JE (Infra Plan) of Division Office for verification and forward the same to SE (Infra

Plan) Zonal Office.

44

70% Payments

Concerned JE (Infra Plan)

Zonal SE (Infra Plan) with

final Measurement Recording

JE (Infra Plan) at Head Office

SE (Infra Plan) at Head Office

CE (Infra Plan) at Head Office

ED projects approval for RA

Payment from

Internal Sources

PFC Verifies RA Bills

Loan Sanctions

RA bill lodgment by bank to

PFC

PFC empanelled bankers

through contractor

If REC/PFC/

RGB

Is loan balance?

Payment gets credit to

directly contractor

bank a/c

ED projects approval

for RA bills

CGM (CF)/WM

Section

Concerned Circle

Office

Releasing check to

contractor

Project completion

& Handling over.

Project Report Releases payment

advice to debt PFC a/c

and credit concerned

contractor bank a/c

REC Verifies RA

Bills

(Figure No.7:-Flow chart of 70% Bill Payment Process)

NO

YES

45

3) On receipt of the said bills from JE (Infra Plan) Division Office, SE (Zone Office) verifies

bills and if found okay the same is forwarded to CE (Infra Plan) Head Office for further

processing and payment.

4) At Head Office: JE (Infra Plan) of respective tenders verifies Running Account (RA) bills

submitted and forwards to EE(Infra Plan) along with invoice Statement, Progress Report. Then

EE (Infra Plan) forwards the same to SE (Infra Plan) for further approvals. Once approved by SE

(Infra Plan), RA bills with two copies i.e. (1 Original and 2 Copies) are approved by CE (Infra

Plan) and ED (Projects) for further processing at loan section.

5) Before processing further at loan section the availability of loan with financing agency is

checked. If the loan availability is conformed, RA bills are sent to ED (Projects) for approval.

After ED’s (Projects) approval running account bills are sent to the loan section.

6) Loan Section forwards/Hand over RA bills duly stamped with Form I (Form I is the form of

PFC) and covering letter to PFC empanelled bankers through contractor. RA bills are required to

be submitted at PFC Delhi by bankers. Bank charges for processing this vary from bank to bank.

The bank charges are borne by the contractor and no compensation is provided.

7) The RA bills lodged by bank to PFC, PFC verifies RA bills and if found okay and in order

then releases payment advice to bank and advises to Debit PFC Account and Credit to concerned

contractor bank account.

8) In case loan section sents RA bills to REC all above processes are the same except RA bills

submission by bank at PFC Delhi. Loan section themselves submit RA bills funded by REC at

REC Office Mumbai. REC Office Mumbai processes in their ERP at Mumbai and technical team

forwards same to their Delhi office (REC BANKING & FINANCE Department located at Delhi)

and amount gets credited directly to the contractor bank account.

46

9) If there is no availability of loan with financing agency then 70% payment is made by

company itself. The RA bills are sent to ED (Projects) for approval and after approval by ED

(Projects) it is sent to the CGM (Corporate Finance) or WM section from where the fund is

transferred to concerned circle office. The cheque is released to contractor.

20% payment

1) On completion of work and due for hand over and take over, joint measurement is carried

(JMC) out and once found okay same is jointly signed by contractor representative and employer

representative.

2) On payment of electrical inspector fee, electrical inspection takes place. After that Hand over

Take over (HOTO) is signed by both parties.

3) Once JMC and HOTO is received ,RA bills for 20%/15%/10% is prepared and presented to JE

(Infra Plan) Division who forwards the same bills after due verification to Division where AE/EE

do verify the same and forwards RA bills to SE (Infra Plan) Zone Office for further verification.

4) On receipt of RA Bills the same is verified by JE/EE/Dy EE and if found okay then the same

is countersigned by SE (Infra Plan) with forwarding letter and the same is submitted to SE

(O&M) Zone Office for further verification.

5) SE (O&M) Zonal Office verifies papers submitted along with RA bills for test reports,

HOTO,JMC and other details if technically found okay the same is handed over to finance and

audit section where rate verification is carried out and if found okay then Docket Voucher is

prepared and signed by Divisional Accountant.

(6) Once everything is okay SE (O&M) Zone Office, forwards the same RA bills to CE (Infra

Plan) Head Office with copies of Docket Voucher and copy of RA bills.

47

(7) At Head Office JE (Infra Plan) verifies RA bills and all documents and if found okay

prepares office note and submits it to EE/SE/CE/ED for approval.

(8) Approved office note with bill copies and Docket Voucher is forwarded to CGM (Internal

Audit) for audit if found okay the same is approved and then submits to Director Finance.

(9) Finally approved office note is submitted to CGM (Corporate Finance) or WM Section for

fund transfer to concerned circle office. Once fund is received at Circle Office cheques are issued

to contractor. C-forms issued to the contractor on request require Material Resource Handling

Over (MRHO) & Entry in Purchase Register.

10) Against the 20% payment only 15% or 10% payment is made and remaining 5% or 10% is

retained for quantity variation/ price variation/liquidity damages/interim penalty etc. This 5% or

10% payment is made after final audit.

10% retention payment

1) Contractor submits work completion report to the Subdivision Office for verification. The

report is forwarded to EE (O&M) Division Office, SE (O&M) Zone Office, and SE (Infra Plan)

Zone Office for verification and approval.JE (Infra Plan) Head Office verify all documents and

forward office note to EE (Infra Plan) Head Office and EE (Infra Plan) submit the same to SE

(Infra Plan) Head Office for approval of office note. Then the report goes to CE (Infra Plan)

Head Office, ED Projects, CGM (Internal Audit), Director Finance for their approval.

2) Before processing further at loan section the availability of loan with financing agency is

checked. If the loan availability is confirmed RA bills are sent for ED (Projects) approval. After

ED (Projects) approval RA bills are sent to the loan section.

3) Loan section forwards/hand over bills duly stamped with covering letter financing agencies.

The further process is same as given in (6), (7), (8) of 70% payment.

48

4) If there is no availability of loan with financing agency then 10% payment is made by

company itself. The bills are sent to ED (Project) approval and after approval by ED (Projects) it

is sent to the CGM (Corporate Finance) or WM section from where the fund is transferred to

concerned circle office. The cheque is released to contractor.

3.2.8 Project Completion and Handling Over Taking Over

Following certificates are issued during project completion & handling over taking over

process.

1) Taking Over certificate

2) Guarantee service

3) Performance Certificate

4) Final project completion certificate

1) Taking-Over Certificate means a certificate issued by engineer when the works, have been

completed in accordance with the contract.

2) Guarantee Service means the supply of all things necessary so as to remedy any defects in

workmanship, materials, plant & equipment and guarantee proper operation of the constructed

facilities for the period of time as specified in the Appendix to Tender after completion of the

works, all in accordance with the conditions of the contract.

3) Performance Certificate means the certificate issued by the Employer's Representative after

satisfactory completion of the works, including Guarantee Tests and Commissioning, and

satisfactory correction of all defects.

4) Final Contract Completion Certificate means the certificate issued by the Employer’s

Representative upon satisfactory completion of the Guarantee responsibilities

49

3.2.9 Third Party Quality Inspection of Work (Sample Basis)

The employer will engage, at his own cost, Third Party Inspectors or Third Party

Inspection Agencies to act as the Employer’s Representative for the purposes of quality

assurance and quality control testing of the Plant, Equipment and Materials to be supplied by the

contractor, and shall notify the contractor accordingly. The third party inspector or agency, as

appropriate, will be authorized to carry out inspections and acceptance tests on behalf of the

employer at all important stages of the works, including:-

(i) Inspection at the Manufacturer’s premises;

(ii) Inspection at the site and during execution of the project works

(iii) Inspection after erection and commissioning of the Plant, Equipment and Materials.

50

CHAPTER -4

IMPLICATION STRATEGIES & COST BENEFIT ANALYSIS OF INFRASTRUCTURE

PLAN PROJECT

4.1 Implication strategy of Infrastructure Plan Project

4.1.1 Design Methodology

a) Preamble

The infrastructure inherited by MSEDCL from erstwhile MSEB is quite old, deteriorated

and overloaded resulting in serious issues in terms of safety and reliability of power supply to

consumers. Further, under USO it is mandatory for MSEDCL to cater to all future load growth.

It has therefore become necessary to strengthen the existing system and increase its efficiency by

replacing old / obsolete assets. Simultaneously, to cater to the new loads, new infrastructure

needs to be created to match the load growth.

The aspect of technical and commercial loss reduction has also been taken into

consideration while upgrading the network and metering systems. A 3-year capital investment

plan has been prepared for each business unit (Division), looking to the specific requirements of

the area. The plan is focused on least cost options based as “Run – Repair – Replace” decisions

which ultimately result in reasonable cost – benefit analysis.

(b)Load Forecasting

Load forecasting is an essential part of overall development plans for electric supply

utilities. With the increase of general income, the per capita consumption of electricity increases.

The main purpose of load forecasting is to test the existing systems to determine weak elements

which will require any augmentation before the load growth actually occurs. Care has been taken

during the forecasting not to overestimate the future demands to avoid making unnecessary

capital expenditures on works that will not provide benefits to MSEDCL’s consumers.

51

(c)Time Horizon

The electricity distribution system is typically divided into the following categories:

Primary and secondary distribution system.

Primary and secondary sub transmission System.

Transmission system.

In the existing system, MSEDCL has jurisdiction over the distribution sector only.

Accordingly, short term planning for upgrading and improvement of the distribution network is

preferred to minimize the investment requirements and optimize the return on investment (ROI).

Since a short lead time is required for using this method, the load forecast is based on the actual

load registered and proposed for the immediate future to ensure rapid utilization of the benefits

of the investments. The total load growth up to the horizon year has been studied and only that

work which is required to meet the forecast needs has been considered in the instant proposal.

The base year for this project has therefore been taken.

While designing the time horizon, proposed changes in the EHV network for the area related

to this proposal have been considered. Thus the proposal has taken care of the availability and

shortcomings of the “EHV infrastructure” in the division.

(d) Design Criteria

While applying the design criteria the following voltage regulation limits have been taken

into consideration, as per provisions under Indian Electricity Rules.

1. For Voltage up to 1100 Volts +/- 6%

2. For Voltage above 440 V up to 33 KV -9 to +6%

3. above 33 KV -12.5% to +10

52

These provisions are also mandatory in view of the MERC regulations-2005 and the

standard of performance to be observed by the company.

(i) Removing Bottlenecks on Feeder Systems

Overloading of feeders must be removed to facilitate a reliable electric power conforming

to the SOP. The additional infrastructure is planned to achieve optimum loading on the feeders,

especially where the feeders are already overloaded or where the projected load growth will

result in overloading. Particular care has been taken to improve the voltage profile on the feeders

to regulate the voltage level to the acceptable limits as prescribed in the SOP.

In order to minimize the system losses in bare overhead conductors, the optimal sizing

will be as detailed in the following table:

(Table 4.1.1.d.i.1:- Table of Conductor Size and Maximum Loading)

(ii) Power Transformer Loading

While evaluating the Power Transformer requirements care has been taken to ensure that

the Power Transformer loading is brought to 50-80% of its rated capacity to prevent overloading

and enhance the system security. Furthermore, based on its operating experience, MSEDCL has

determined that 5 MVA transformers are better quality and more reliable than smaller capacity

transformers, and has accordingly standardized the minimum size of Power Transformers at 5

MVA to improve the supply quality. In cases where augmentation and addition of transformers

Conductor Size Max. Loading ( in Amps )

34 sqmm 150

50 sqmm 200

80 sqmm 250

100 sqmm 300

53

in the existing substations results in the capacity reaching 10 MVA in urban areas or 10 MVA in

rural areas, new substations have been proposed.

Although standardizing the size of the power transformers at 5 MVA will result in

comparative under loading of some Power Transformers in the divisions during the short term, it

will also cater to the projected medium and long term demand growth.

(iii) Distribution Transformer Loading

Distribution transformers are vital components in the distribution system with reference

to the quality of supply. Distribution transformer failure rates are at a very high and alarming rate

in many of the Zones. The field data analysis suggests that the major attribute to this is ageing

and overloading of the transformers. Notwithstanding the fact that electric faults occurring in the

low tension network is also a cause for failure of the distribution transformers, it is difficult to

precisely analyze and quantify what proportion of the failures are attributable to this factor.

While designing for augmentation of the infrastructure under this instant plan care has been

taken to minimize distribution transformer overloading and to maintain the loading in the range

of 50-80%. For tail end transformers which will not contribute to load sharing in case of failure,

loading of up to 120% of the rated capacity has been allowed.

(iv) Ensuring Supply Security

In order to maintain supply security, alternate feeding arrangements have been

strengthened. Care has been taken to restrict the load on each DTC to the extent of 80% of its

rated capacity where there is a practice of sharing the load with other transformers in the vicinity

in case of transformer failure.

54

(v) Loss Reduction Measures

Loss reduction measures are proposed to be implemented in the following sequence:

1. Power Factor Correction:

The present average power factor in the existing system is 0.90. By adding reactive

compensation of suitable in the system, a power factor close to 0.95 will be achieved.

2. Reducing Load on Primary Conductors

Due to bifurcation of load on the 11 KV feeders, the load on the existing primary

conductors will be reduced. Further, due to establishment of switching stations the load can be

switched from one feeder to another feeder if required, thereby improving the system reliability.

Based on the forecast of the maximum load on the feeders, the optimal size of the

conductors and cables has been decided. Similar treatment has been given while deciding current

transformer ratios at substations.

3. DTC Failure Rate

Owing to the high DTC failure rates in the various divisions, a detailed analysis has been

carried out by the divisional field engineers. It is observed that aging, overloading and service

condition are the main causes of the high failure rates. Accordingly, replacement of aged DTCs

will be undertaken to replace the critically aged transformers, which will result in a reduction in

the failure rate. Furthermore, the existing DTCs will be augmented which will result in a

reduction in the loads on the transformers and further reduce the DTC failure rate. The

benchmark has been set considering these factors and the prevailing failure rate in the division.

4. HT: LT Ratio

The existing HT: LT ratio will be improved from 1:1.70 to 1:1.50 by converting selected

high loss LT lines to HT lines and extending the HT network.

55

4.1.2 Implementation and Monitoring

Implementation Mechanism

As the instant project has been designed to address the immediate and short-term load

demands it is apparent that the project will require a short lead time. Further monitoring of the

project and all related activities needs to be done at the micro level during the tendering and

construction stages to ensure timely implementation and early delivery of benefits. Though the

planning work has been done based on subdivision-wise requirements, the scheme has been

designed based on Divisional feeder-wise planning for reduction of losses.

Since start of the project has already been delayed to some extent, the following major activities

have been identified for effective project plan implementation:

Administrative approval for the project proposals: 14 days

Approval of DPRs by MERC: 21 days (Concurrent with administrative approval)

Financial clearance from Lending Institution: 21 days (Concurrent with administrative

approval)

Preparation of detailed estimates for the works: 21 days (Concurrent with administrative

approval)

Publication, finalization of tender and award of Contract for “Turn-key” works: 75 days

Successful Bidders initial lead-time for arranging resources: 21 days

Start of Works simultaneously at all sites: 15 days from completion of lead time

End of all project related works: different for different projects

Monitoring Mechanism

The successful bidder will submit his work plan for each subdivision along with activity

schedule duly fixed in consultation with company officers and the Project Management

Consultant (PMC) (Employer’s Representative). This will be done within 14 days from signing

of contract document.

56

Each PMC will have overall responsibility for ensuring effective and timely completion

of the construction contracts, including contract administration, quality control, cost control,

dispute minimization/ resolution, and monitoring and reporting. A Junior Engineer at each

section office will be responsible for supervision and monitoring of the works. He will discharge

the duties of monitoring the project on time and quality parameters.

Subdivision officer will have overall responsibility for ensuring the project works under

his subdivision in a predefined manner with the help of the PMCs. Weekly management

meetings will be fixed at division offices to sort out and fix the issues and to monitor the

progress compared to the agreed milestones.

57

4.2 Case study of Ballarshah Division

4.2.1 Introduction of Ballarshah Division

This division covers the sixes Taluqa of Chandrapur district. There are 6 O&M

Subdivisions and 16 section offices. One construction Subdivision is responsible for looking

after major construction works and substation related O&M works of the entire division.

As on 31 March 2012 the Division has total of 97,118 consumers that included 34 High

Tension (HT) consumers and 97084 Low Tension (LT) consumers. Average input power for this

division is 342 Million Units (MUs) per annum. This division has large potential for commercial

and residential consumers. During year 2011-12 total revenue collection from this Division was

to the tune of Rs. 113.064 crores .This division has distribution loss to the tune of 9.5%.

The residential, commercial and industrial consumer’s together account for nearly

61.30% of the total consumers and 58.22% of the connected load, 100% of the consumers have

metered connections and no unmetered (agriculture) connection account for total connected load.

Ballarshah Division’s performance is exceptionally good, with distribution losses of 9.5%

(mostly technical losses), billing efficiency of 91.55%.

The distribution system is fed through 11KV supply network. Thus there is only

population of 11/0.4 KV distribution transformers. There are 1413 11/0.4 KV distribution

transformers. Total length of 11 KV & 33 KV network is 2342.30 Km including overhead line

for 11 KV & 33 KV. Total length of LT network is 3324 Km and existing HT: LT ratio of

1:1.70.

58

Area under this Division is not densely populated but geographical large area and thus

“Ways leave” problems are not predominated in the area. Due to industrial growth in Chandrapur

district, large residential colonies and complexes and associated commercial complexes are

developing at fast rate. There has been a spurt in growth in past ½ years in residential and

commercial sector consumers. Most of the network has served more than their prescribed life

and needs renovation. It is essential to upgrade existing system and to erect new infrastructure

for meeting this load demand growth.

4.2.2 Basic Data of Ballarshah Division

In order to prepare the cost benefit analysis for the proposed investment, the following

basic data has been used:

(Table No.4.2.2.1:-Basic Data of Ballarshah Division)

Sr. No Particulars Unit 2010-11

1. Total Input to Division MUs 342.77

2. Total units Sold. MUs 315.74

3. Loss of Distribution MUs 27.07

4.

Total Demand:

Demand from Consumers

Government Subsidy

Rs. Crores

Rs. Crores

Rs. Crores

131.16

-

-

5.

Employee Cost Rs. Crores. 8.38

Repairs & Maintenance Cost Rs. Crores. 1.71

Any other Cost Rs. Crores. 3.36

6. Total Cost for the Division Rs. Crores. 13.46

7. Rate Realized/ billed Unit Rs/Unit 4.22

8. Rate Realized/ input Unit Rs/Unit 3.88

Note :- Refer ANNEXURE VI

59

4.2.3 Rationale and Method of calculation

The following rates have been utilized to calculate the benefits of the DPR of Ballarshah

Division under Infrastructure Plan Phase II Project:

1. Additional Units Available for Sale due to the System’s Enhanced Capacity to meet Demand

Growth: The difference between [Actual Rate of Realization for the Division] and the [Average

per Unit Cost of Purchase of Power for the State], i.e.:

[Rs. 4.22/unit] – [Rs. 2.79/unit] = [Rs. 1.43 /unit]

2. Units Saved due to Technical Loss Reduction: Average per Unit Cost of Purchase of Power

for the State, [Rs. 2.79/unit].

3. Additional Revenue due to Commercial Loss Reduction: Actual Division-wise per Unit

Billing Rate. For Ballarshah Division this is: [Rs. 4.22 /unit]

The rationale for using the aforesaid rates is as follows:

1. The Infra-Plan Project envisages addition of new capacity and energy savings due to reduction

in system losses. In order to create additional sales, additional power will have to be purchased to

utilize the additional capacity created and the growth in consumers. The power will then be sold

to the consumers.

2. Since additional sales will be made from the additional power purchased, the rates applicable

for the calculation of benefits for additional sales are based on the difference between [Actual

per Unit Rate of Realization for the Division] and the [Average per Unit Cost of Purchase of

Power for the State]. In cases where additional capacity created by the system improvements

exceeds the short-term growth in demand up to 2014-2015, any surplus capacity will be absorbed

by the consumers in subsequent years.

60

3. The Technical Loss Savings will enable MSEDCL to lower its power purchase requirements

to meet the growth in demand. Hence, the benefits due to Technical Loss Savings will be

calculated at the [Average per Unit Cost of Purchase of Power for the State].

4. Each Unit of Commercial Loss Savings will enable MSEDCL to sell the units it had already

purchased but were unable to realize in sales. Hence, the Commercial Loss Savings will bring

benefits to the tune of Division-wise per Unit Billing Rate. Hence for each DPR, the [Actual

Division-wise per Unit Billing Rate] is used to calculate the benefits due to Commercial Loss

Savings.

4.2.4 Cost Benefits Analysis

Statement of additional sales & reduction in losses with proposed scheme.

(Table No.4.2.4.1:- Cost Benefit Analysis of Ballarshah Division)

Year Additional Sales of

Energy (MU’s)

Technical Loss

Reduction (MU’s)

Commercial Loss

Reduction (MU’s)

Total Benefit in

(Rs. Lakhs)

2012-13 0.00 9.90 2.58 335.04

2013-14 20.18 16.72 4.87 794.68

2014-15 21.79 15.77 4.61 1003.85

2015-16 23.53 23.46 6.58 1342.85

In

Horizon

Year

23.53 23.46 6.58 1342.85

[ Avg. Rate of Realization (Rs. Per kwh)-Weighted Average Cost of Purchase 1.43

(Rs. Per Kwh)]

Weighted Average Cost of Purchase (Rs. Per Kwh) 2.79

Divisional Rate of Sale (Rs. Per Kwh) 4.22

Note: - Refer APPENDIX Formulae for calculation (1)

61

4.2.5 Financial Viability Calculations for Infrastructure scheme of Ballarshah

I) Project Particulars

(Table No.4.2.5.I.1- Phasing of expenditure of Ballarshah Division)

Sr. No Project Particular

Cost

(Rs in Lakhs)

1 Cost of the project 2030.75

2 Phasing of expenditure

(Year wise) (Percentage)

2011-12 20% 406.15

2012-13 40% 812.30

2013-14 25% 507.69

2014-15 15% 304.61


II) A. Benefits due to additional sale of energy

(Table No.4.2.5.II.A.1:- Benefits due to additional sale of energy )

Sr. No Million Units

1 Additional sale of energy in 2015-16 without implementation of

scheme

130.01

2 Additional sale of energy in 2015-16 with implementation of

scheme

145.65

3 Net additional sale of energy with implementation of scheme 15.64


62

B. Benefits due to savings in losses

(Table No.4.2.5.II.B.1:-Benefits due to saving in loss)

Sr. No. Million Units

1 Technical Loss reduction in 2015-16 28.41

2 Commercial loss reduction in 2015 -16 7.736

3 Total Savings in losses 36.15

Note: - Refer APPENDICES Formulae for calculation (4)

III) To calculate financial benefits due to additional sale of energy

(Table No.4.2.5.III.1:- Financial benefits due to additional sale of energy)

Sr. No.

1 Average tariff of state excluding subsidy if any (Rs. Per Unit) 4.35

2 Average subsidy i.e. Tariff compensation (Rs per unit)

3 Total Revenue ( Rs per unit) 4.35

4 Average cost of power purchased from Generating companies

(Rs Per unit)

2.79 5 Inter State wheeling charge (if not included above)

6 Wheeling charge payable for intra state wheeling

7 Total Cost of Power (Rs. Per Unit) 2.79

8 Net Revenue (Rs Per Unit) 1.56

9 Value of benefits (Net) due to additional sale of energy 24.40


IV) Financial benefits due to saving in losses = 56.39

(Note: - Refer APPENDIX Formulae for calculation (6) )

63

V) Other benefits (Details are as given below)

VI) Total benefit to the utility due to the scheme = 1346.53

(Table No.4.2.5.VI.1:- Total Benefit to the utility due to scheme)

Sr. No. Time Period Percentage Cost (Rs in Lakhs)

1 1 Year 0% 000.00

2 2 Year 25% 335.71

3 3 Year 30% 402.85

4 4 Year 30% 402.85

5 5 Year Onward 100% 15% 201.43


VII) IRR Calculation

(Table No. 4.2.5.VII.1-IIR Calculation)

Year Investment O & M Charge @ 3% Financial Benefits

(Rs in Lakhs)

Net Financial

Benefits

1 406.15 6.09 000.00 -412.24

2 812.30 12.18 336.63 -487.85

3 507.69 7.62 403.96 -111.34

4 304.61 4.57 403.96 94.78

5 0.00 201.98 201.98

6 0.00 201.98 201.98

7 0.00 201.98 201.98

8 0.00 201.98 201.98

9 0.00 201.98 201.98

10 0.00 201.98 201.98

11 0.00 201.98 201.98

64

12 0.00 201.98 201.98

13 0.00 201.98 201.98

14 0.00 201.98 201.98

15 0.00 201.98 201.98

16 0.00 201.98 201.98

17 0.00 201.98 201.98

18 0.00 201.98 201.98

19 0.00 201.98 201.98

20 0.00 201.98 201.98

21 0.00 201.98 201.98

22 0.00 201.98 201.98

23 0.00 201.98 201.98

24 0.00 201.98 201.98

25 0.00 201.98 201.98

IRR 14.70%


4.2.6 Benchmarking

I) Establishing Benchmarks

As a part of its overall strategy to turn around the company’s financial position and in

order to ensure a judicious investment in infrastructure development in each division, MSEDCL

has established the following benchmarks which the divisions will be responsible to attain during

the period up to the horizon year of 2009-10. These benchmarks have been agreed with MERC

and form a part of the approved Multi Year Tariff Plan.

65

(a) Reduction in distribution losses

(Table No.4.2.6.I.a.1:- Base Line Loss Levels & Target Loss Levels)

(b) Reducing loading of distribution transformers:

Target to reduce loading of the distribution transformers from the present level ranging from

100% - 150% to 80% in the Horizon year

(c) HT-LT ratio improvement expected after implementation:

(Table No.4.2.6.I.c.1:- HT-LT ratio present & projected level)

Base-Line Loss Levels Target Loss Levels

For Circles with above 50% Distribution losses 4.5% reduction in every year

For Circles having losses between 35% to 50% 3.5% reduction in every year for three

years and 1.5% in next two years

For Circles having losses between 20% to 35% 3% in first two years and 1% in next

three years

For Circles having losses below 20% 1.5% in first two years and 1% in next 3

years

Present Level Projected Level

1:1.700 1:1.65

1:1.705 1:1.60

1:1.710 1:1.55

1:1.715 1:1.50

66

(d) Reduction in DTC failure rate to 5% in urban Areas & 7% in rural areas.

(e) Improvement in power factor through proper Reactive Power Management Plan by installing

capacitors at substations/ DTCs/ lines, as follows:

Power Factor to be brought to 0.90 in rural areas;

Power Factor to be brought from 0.90 to 0.95 in urban areas;

Power Factor to be brought from 0.95 to 0.99 in industrial areas.

(f) Improvement in Voltage Profile to meet the Standard of Performance given by MERC. These

benchmarks are now being applied by MSEDCL not only for this Infra Plan Project, but also for

all its operations throughout Maharashtra. MSEDCL has established an Internal Reforms (IR)

Section which is responsible for monitoring the progress made towards achieving these targets in

all divisions.

(II) Monitoring of benchmark parameters

Based on MSEDCL’s benchmark targets, the Infra Plan project has been designed to

achieve the following targets by the horizon year of 2014-15. The project’s success in meeting

these targets will be monitored by both the Infrastructure Plan unit and by MSEDCL’s IR section

as the project progresses.

67

(Table No.4.2.6.II.1:- Benchmarking Parameters)

Sr. No Benchmark Parameters Units Present Level in

2009-10

Level to be achieved

in 2014-15

1 Input Power MUs 342.77 375.74

Total Units Billed MUs 315.74 354.10

Total Units Lost MUs 27.07

(7.9 %)

21.64

(5.8 %)

2 Rate per billed unit Rs. / Unit 4.22 3.94

3 Rate per input unit Rs. / Unit 3.88 3.70

4 Metering Efficiency

(Nos. of meters)

% 100% 100%

5 Billing efficiency % 97.10% 98%

6 Collection efficiency % 100.5% 120%

7 HT/LT 1:1.70 1:1.50

8 Distribution Transformer

Failure Rate

% 5.2 4.2

9 HT Capacitors installed Nos. 18 -


68

CHAPTER-5

CONCLUSION, RECOMMENDATIONS & FUTURE SCOPE

5.1 Conclusion

1) The work of Infra Plan will be carried out as per Company’s existing specifications and

standards, and all equipment and materials will be as per standards prevalent in industries.

2) In view of the large scope of the Infra Plan works and scope of the proposed investments,

MSEDCL has taken a strategic decision to tender out the works on single point responsibility

“Trunkey” contractor basis to reputed and qualified contractors.

3) Looking into the size of the works and duration it is felt that it is well within reach as effective

control management and project monitoring can be done.

4) The proposal is techno-economical viable considering the early benefits to be provided to the

consumers and the rate of return available in the instant proposal.

5) Additional economic benefits will be realized as a result of the project investments due to

improved availability and reliability of the power supply. Although these have not been

quantified in financial terms, they include an increase in production capacity of agricultural

enterprises and industries, a reduction in the cost of production due to improved productivity, a

reduction in lost time, and promotion in the growth and expansion of productivity activities.

6) A study of the existing and proposed EHV sources has been made and distribution system

improvements have been analyzed by simulating alternative configurations. Considering the

spare distribution capacity and the power to be saved on account of reduction in losses, the net

savings due to reduction in losses have also been worked out.

69

7) Based on the interruption data available, system improvement works have been identified.

Under the R&M component of the works, reconductoring (upgrading) of undersized and/or

severely deteriorated lines has been proposed to help reduce the distribution system losses and

improve the system reliability; the optimal sizes for cable replacements have been determined

based on the forecast demand for the service areas.

8) In order to ensure equity in the cost benefit analyses and to accurately assess the impact of the

proposed investments on the tariff to be charged under the Multi Year Tariff Plan, the Financial

Statements and Projections have been made using the State’s Average Weighted Cost of

Purchase for the units saved due to the Technical Loss Reduction (Rs. 2.79/ unit) and the

Division’s actual Rate of Realization for units saved due to the Commercial Loss Reduction

(Rs. 3.88/ unit).

For additional units available for sale due to the system’s enhanced capacity to meet the

growth in demand, the additional revenue realized is calculated based on the difference between

the Division’s Actual Rate of Realization (Rs.4.22/- unit) and the State’s Weighted Average

Purchase Cost (Rs. 2.79/ unit), i.e., Rs. 1.43/- unit. The results of this evaluation, along with IRR

calculations of Table No. 4.2.5.VII, basic data of table no.4.2.2 and cost benefit analysis of table

no.4.2.4 of Ballarshah Division are given in chapter 4 of this report.

70

5.2 Recommendations or Suggestions

1) When RA bills are submitted by the loan section to the PFC empanelled banker. The PFC

empanelled banker charges the processing fee to the contractor for getting amount credited to his

bank account form PFC Delhi. This cost of transaction imposed by PFC empanelled banker is

bear by contractor and no compensation is provided to him by MSEDCL. Therefore MSEDCL

should compensate this loss occurring to the contractor in (70%, 20%/15%, 10%) billing process.

MSEDCL can also compensate this loss by including it in contact price.

2) The benchmark Parameters will serve as broad indicators and assist in decision making by

Regulatory Commissions while approving system.

3) The model given for updating the benchmark costs may be updated after 3-5 years as there

may be changes in technology that impact on actual capital costs, and changes in the weightages

of the composite price indices. If the base of the price indices shifts, appropriate adjustments

would need to be made.

4) In the case of 33 kV, 11 kV and LT lines utilities adopt different sizes of conductor and types

of supports. This might have been adopted by the MSEDCL based on the requirements. Based on

the costs furnished the MSEDCL shall try to economise the costs.

5) The costs of 33/11kV substations vary considerably in the layouts etc., type of structures,

control rooms and other related civil works, etc. Since the utilities are constructing large number

of substations is rural areas under RGGVY and other schemes, it is desirable the layouts are

simplified and the costs reduced.

71

6) The distribution transformer capacities are standardised in most of the utilities to 15/16 kVA

single phase, 25 kVA, 63 kVA and 100 kVA. It may not be desirable to go in for large capacity

distribution transformers unless they have to cater highly concentrated loads / load density is

high. Installation of smaller capacity transformers reduces LT line lengths and losses thereby

improving the voltages.

5.3 Future Scope

The Indian government has set an ambitious target for system augmentation in the

distribution segment. It plans to quadruple the distribution network by adding 3.2 million ct. km

of distribution lines in the Eleventh five year plan (2007-2012). Another 4.2 million ct. km is

planned to be added in the Twelfth five year plan (2012-2017). Thus by the end of the Twelfth

Plan, the total distribution network in the country would have doubled, thus greatly facilitating

delivery of power to the expanding base of end-use customers. Further, it plans to bring about

214,000 MVA of transformer capacity in the Eleventh Plan and another 270,000 MVA in the

Twelfth Plan enabling MSEDCL to do great work to strengthen its infrastructure in future.

72

BIBILOGRAPY

[1] Turan Gonen, “Electric Power Distribution System Engineering”, Chapter 1, Page No. (3 to

4).

[2]http://www.mercindia.org.in/Regulations.htm, Maharashtra Electricity Regulatory

Commission Guidelines for In-Principle Clearance of Proposed Investment Schemes February

2005.

[3]http://www.mercindia.org.in/Regulations.htm, Maharashtra Electricity Regulatory

Commission (Standards of Performance of Distribution Licensees, Period for Giving Supply and

Determination of Compensation) Regulations, 2005

[4]http://www.mercindia.org.in/Regulations.htm Maharashtra Electricity Regulatory

Commission (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005.

[5] Anshu Bharadwaj and Rahul Tongia, “Distributed Power Generation: Rural India – A Case

Study”, Member, IEEE,

Page No.1.

[6] Maharashtra State Electricity Distribution Company Ltd. Turnkey Contract for Electrification

Works for Mahavitaran Infrastructure Plan Phase – II A. (i) BID DOCUMENT INVITATION &

INSTRUCTIONS TO BIDDERS (Version - II) Volume I of V. (ii) BID DOCUMENT PRICE

VARIATION FORMULAE & CRITERIA FOR APPROVAL OF VENDORS (Version – II)

Volume III of V (Common for All Bids).(iii) BID DOCUMENT TECHNICAL

SPECIFICATION Volume IV of V.(iv)BID DOCUMENT PRICE BID Volume V of V. July

2009.

[7] The Smart Grid vision For India’s power sector, United States Agency for International

Development by PA Government Services, Inc., March 2010.

http://www.mercindia.org.in/Regulations.htm

http://www.mercindia.org.in/Regulations.htm,%20MAHARASHTRA


73

[8] Amarjit Singh Pabla ,“Electric Power Distribution”, Sixth Edition, Chapter 5 to Chapter 21,

Page No. (246 to 963), 2011.

[9] http://www.mercindia.org.in/Regulations.htm, Maharashtra Electricity Regulatory

Commission (Multi Year Tariff) Regulations, 2011.

[10] http://www.indiabudget.nic.in, Box11.1 Power sector reforms, Energy, Infrastructure and

Communications Budget 2012-13.

[11] A report on, “Transmission & Distribution In India”, by A joint initiative of WEC‐IMC and

Power Grid Corporation of India Limited.

[12] http://www.mahadiscom.in/ from June to August 2012.

[13] http://www.mahadiscom.in/ongoing-projects.shtm from June to August 2012.

[14]http://www.mahadiscom.in/Infrastructure_project-phase 22may/ Infrastructure_ Plan_

Projects.shtm, Infrastructure projects. From June to August 2012.

[15] http://www.forumofregulators.gov.in/Capital-cost-banchmarking.aspx, Capital cost

benchmarks for distribution business-Administrative staff college of India.

[16] Websites visited.

Important Websites visited

Sr. No. Sr. No.

1 http://www.powermin.nic.in/ 4 http://www.cea.nic.in/

2 http://www.recindia.nic.in/ 5 http://www.nldc.in/

3 http://www.ippai.org/ 6 http://www.iexindia.com/




http://www.mahadiscom.in/

http://www.mahadiscom.in/ongoing-projects.shtm

http://www.mahadiscom.in/Infrastructure_project-phase%2022may/%20Infrastructure_%20Plan_%20Projects.shtm

http://www.mahadiscom.in/Infrastructure_project-phase%2022may/%20Infrastructure_%20Plan_%20Projects.shtm

http://www.forumofregulators.gov.in/Capital-cost-banchmarking.aspx

http://www.powermin.nic.in/

http://www.cea.nic.in/

http://www.recindia.nic.in/

http://www.nldc.in/

http://www.ippai.org/

http://www.iexindia.com/

74

APPENDIX

1) Formulae for calculation of Table No.4.2.4.1

Additional Sale of Energy million units (MUs) is taken from ANNEXURE IV

Technical Loss Reduction (MUs) is taken from ANNEXURE II

Commercial Loss Reduction (MUs) is Taken from ANNEXURE II

Technical Loss Reduction for the corresponding year without investment =

[Total Technical losses for (A) of the corresponding year without investment] –

[Total Technical Losses for (A) of the corresponding year with investment]

Commercial Loss Reduction (MUs) of the corresponding year =

[Total Non-Technical losses of the corresponding year without investment option] –

[Total Non-Technical Losses of the corresponding year with investment option]

Total Benefits in Rs (Lakhs) of the corresponding year =

[Additional Sale of energy] * [Average Rate of Realization (Rs/kwh) – Weighted

Average cost of purchase of power] + [Technical Loss Reduction (MU’s) * Weighted

Average cost of purchase (Rs/kwh) of power]

2) Formulae for calculation of Table No.4.2.5.I.1

Cost of project is taken from ANNEXURE XIII NZ of Infrastructure Work Plan II,

Details of Proposed Works under MSEDCL Infrastructure Plan Project, Division

Ballarshah, Circle Chandrapur, Zone Nagpur, Maharashtra State Electricity Distribution

Co. Ltd.

Expenditure of the corresponding year = [ Percentage of corresponding year] *

[Cost of project]

3) Formulae for calculation of Table No.4.2.5.II.A.1

Refer ANNEXURE IV for data.

Net additional sale of energy with implementation of scheme =

75

[Additional sale of energy (Lus) in 2015-16 with implementation of scheme] –

[Additional sale of energy lakh units (Lus) in 2015-16 without implementation of

scheme]

4) Formulae for calculation of Table No.4.2.5.II.B.1

Refer ANNEXURE V for data.

Total Saving in Losses = [ Technical Loss Reduction(Lus)] + [ Commercial Loss

Reduction lakh units(Lus)]

5) Formulae for calculation of Table No.4.2.5.III.1

Net Revenue (Rs. Per Unit) = [Total revenue (Rs. Per unit)] – [Total cost of power (Rs.

Per unit)]

Value of benefit due to additional sale of energy = [ Net Revenue (Rs. Per unit)] *

[Net additional sale of energy with implementation of scheme (from Table No.8.5.II.A.1]

6) Formula for calculation of Financial benefits due to saving in losses

Financial benefits due to saving in losses = [Net Revenue (Rs. Per unit)] * [Total saving

in Losses]

7) Formulae for calculation of Table No.4.2.5.VI.1

Total benefit to the utility due to the scheme = [Total benefit in (Rs. Lakhs) of

corresponding year (2015-2016)] * [ Percentage of successive year (1st,….,5th

)]

8) Formulae for calculation of the Table No.4.2.5.VII.1

Value for Investment is taken from Table No.8.5.I.1

76

Value for Financial benefits is taken from Table No.8.5.VI.1

Operation & Maintenance charges @ 3% = [ (Investment of the corresponding year / 2) *

(0.03)]

Net Financial benefits = [ Financial benefit of the corresponding year] – [ Operation &

Maintenance charges @ 3% + Investment of corresponding year]

9) Formulae for calculation of Table No.4.2.6.II.1

Total units lost (in MUs): (Total input – Total units billed (HT+LT)) in MUs

Rate per billed unit: (Total demand in Rs.) / Total Units Billed

Rate per input unit: (Total demand in Rs.) / Total Units Input

Metering Efficiency = Total nos. of metered consumers / Total nos. of consumers

Billing Efficiency: Total units billed / Total Input.

Collection Efficiency: Total amount Collected / Total demand (in Lakhs).

HT: LT Ratio. = Total km of HT including UG: Total km of LT including UG.

77

ANNEXURES

ANNEXURE I

ANNEXURE ‘A’ P

(Attachment of O.O. NO.29 (GAD/CGM (T/E)/MPR/33940) Date-04/11/2010)

CONSUMER NORMS

Sr.No Offices Norms accepted vide BR 1273 dated

11.10.2010

1 2 3

1) Section Office

Rural Section

Section Office

(U) Section Office in Corporation area

(U)Section Office in Metro area i.e. Bhandup & Pune

7500 Consumers

12500 Consumers

15000 Consumers

20000 Consumers

2) Sub Division

Rural Sub Division 1)30000 Consumers

2)75-85 Villages

3) Sub Division shall have 4 to 5

Section Offices.

4)No. of DTC shall also be

Seen while creating S/Dn.

Urban Sub Division 50000 Consumers with 4 Section

Office

Urban Sub Division in Corporation Area 60000 Consumers with 4 Section

Offices

Urban Sub Division in Metro area i.e. Bhandup & Pune 80000 Consumers

3) Division Office

Rural Division Minimum 4 Sub Divisions

Urban Division Minimum 4 Sub Divisions

78

Urban Division in Corporation area Minimum 4 Sub Divisions

Urban Division in Metro area i.e. Bhandup & Pune Minimum 4 Sub Divisions

4) O&M Circles Minimum 5 Divisions

5) Zones 4 O&M Circles

Note:-

The bifurcation process for creating above new offices shall start after 50% increase in

consumer strength. However new offices shall commence only after consumer’s strength reaches

with minimum number of consumer prescribed for each office even by restructuring. Special

treatment/norms shall be provided for creating new offices having revenues dimensions.

Any other deviation in above consumer norms shall be decided by board.

79

ANNEXURE II

ANNEXURE IX (A) & (B)

MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.

Division: Ballarshah, Circle Chandrapur, Zone Nagpur

Energy Losses In Transformers

Without Investment Option

Sr.

No

Transfor

mer Size

Qty

.

Nos

.

Loss in

Transformer

(KW)

Full

Load

curre

nt of

Trans

forme

r

Average total

peak current

of

Transformer

Total Energy Losses ( Mus)

Total

KVA

Iron

Los

s

Full

Load

Loss

201

1-12

201

2-13

201

3-14

2014

-15

2015

-16

1 Power Transformers

10 MVA 2 2000

0

8.50 57.00 525 171.00 0.07

5

0.08 0.09 0.10 0.12

5 MVA 12 6000

0

5.50 33.00 262 122.24 0.33

8

0.39 0.46 0.54 0.63

Total ( I) 14 8000

0

14.0

0

90.00 0.41 0.48 0.55 0.64 0.74


KVA

Capacity

25.00 252 6300 0.13 0.65 33.34 22.06 0.20 0.23 0.25 0.28 0.31

50.00 6 300 0.20 0.92 66.67 61.25 0.01 0.01 0.01 0.01 0.01

63.00 576 3628

8

0.28 1.23 84.00 33.31 0.71 0.79 0.88 0.98 1.09

100.00 529 5290

0

0.31 1.70 133.3

4

82.57 1.00 1.11 1.23 1.37 1.53

200.00 50 7500 0.62 2.60 266.6

8

192.68 0.19 0.21 0.24 0.26 0.29

11/0.4 141

3

1032

88

1.53 7.10 2.11 2.35 2.61 2.91 3.24

Total

( II)

141

3

1032

88

1.53 7.10 2.11 2.35 2.61 2.91 3.24

Grand

Total

(I+II)

142

7

1832

88

15.5

3

97.10 2.52 2.83 3.17 3.55 3.98

Average Energy Loss Peak Loss * LLF * 8760/1000000 in MUs

LLF = 0.8 * (LF) * (LF) + 0.2 LF =0.408

80

ANNEXURE II

ANNEXURE- IX (A) & (B)


Division: Ballarshah, Circle Chandrapur, Zone Nagpur

Energy Losses In Transformers

Sr.

No.

Transformer

Size

With Investment Option

Qty.

Nos.

Average

total peak

current of

Transformer

Line 07-08

Total Energy Losses (MUs)

2011-

12

2012-

13

2013-

14

2014-

15

2015-

16

1 Power Transformers

10 MVA 2 99.73 0.075 0.08 0.03 0.03 0.04

5 MVA 18 142.58 0.338 0.39 0.26 0.29 0.32

TOTAL (I) 20 242.31 0.41 0.48 0.29 0.32 0.36


KVA

capacity

25.00 252 26.67 0.20 0.23 0.11 0.12 0.14

50.00 6 53.34 0.01 0.01 0.00 0.00 0.00

63.00 567 67.20 0.71 0.79 0.51 0.57 0.64

100.00 839 106.67 1.00 1.11 0.93 1.04 1.15

200.00 50 213.35 0.19 0.21 0.10 0.11 0.12

11/0.4 KV 1723 2.11 2.35 1.66 1.84 2.05

Total (II) 1723 2.11 2.35 1.66 1.84 2.05

Grand Total

(I+II)

1743 2.52 2.83 1.95 2.17 2.41

Average Energy Loss Peak Loss * LLF * 8760/1000000 in MUs

LLF = 0.8 * (LF) * (LF) + 0.2 LF =0.408

81

ANNEXURE III

ANNEXURE X (A) & (B)


Division: Ballarshah Circle: Chandrapur Zone: Nagpur

Summary Statement Of Total Energy Losses (MUs )

Sr.

No.

Sub-System Without Investment Option With Investment Option

2011

-12

2012

-13

2013

-14

2014

-15

2015

-16

2011

-12

2012

-13

2013

-14

2014

-15

201

5-

16

A Technical Losses

I Sub-Transmission

a) Power

Transformer

0.41 0.48 0.55 0.64 0.74 0.41 0.48 0.29 0.32 0.36

b) Lines 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

II Primary

Distribution

a) Feeders 0.67 0.68 0.69 0.71 0.73 0.67 0.36 0.37 0.38 0.39

b) Distribution

Transformers

2.11 2.35 2.61 2.91 3.24 2.11 2.35 1.66 1.84 2.05

III Secondary

Distribution.

a) LT line losses 18.36 25.65 29.80 33.85 41.25 18.36 17.35 16.40 15.50 14.6

5

a) Due to

Augmentation of

Conductor Size

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

b) Due to

provision of Add.

DTCs

(excluding for

load growth )

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Technical Losses for

"A"

21.55 29.15 33.66 38.11 45.96 21.55 20.53 18.71 18.04 17.4

5

B Non Technical

Losses

5.60 7.58 8.75 9.91 11.95 5.60 5.34 4.49 4.33 4.19

Total ( A + B ) 27.15 36.73 42.41 48.02 57.91 27.15 25.87 23.20 22.37 21.6

4

82

ANNEXURE IV

ANNEXURE V

ANNEXURE- XI


Division Ballarshah, Circle Chandrapur , Zone Nagpur

Sub-Transmission / Primary Distribution Feeder Analysis- Additional Units available for sale.

Feeder Name Amp

Existin

g

Amp

Horiz

on

Without Investment Option With Investment Option

Additional Energy Sale ( MUs) Additional Energy Sale ( MUs)

2012-

13

2013-

14

2014-

15

2015-

16

2012-

13

2013-

14

2014-

15

2015

-16

Total 2112.0

0

2623.

75

110.7

2

116.8

1

123.2

3

130.01 110.7

2

130.8

6

138.0

5

145.6

5

ANNEXURE-XII



Statement of Additional Sales & Reduction in Losses with Proposed Scheme

Year Additional Sale of

Energy ( MU's )

Technical Loss

Reduction (MU's)

Commercial Loss

Reduction (MU's)

Total Benefit

in (Rs. Lakhs)

2012-13 0.00 8.62 2.24 335.04

2013-14 14.05 14.94 4.26 797.65

2014-15 14.82 20.06 5.58 1007.16

2015-16 15.64 28.51 7.76 1346.53

In Horizon Year 15.64 28.51 7.76 1346.53

[ Average Rate of Realization (Rs. Per Kwh) - Weighted Average Cost of

Purchase (Rs. Per Kwh) ]

1.43

Weighted Average Cost of Purchase (Rs. Per Kwh) 2.79

Divisional Rate of Sale (Rs. per Kwh)

4.22

83

ANNEXUE VI

Format – B



Loss Reduction & sales increase

POSITION AS ON 2011-12

Name of

Division

Cost of

Projects

Input

Energy

Total Loss (As

per IR)

Commercial Loss Technical Loss (

As per DPR)

Total sale

Ballarpur Crores MU’s % MU’s MU’s % MU’s % MU’s

1 2 3 4 5 6 7 8 9

20.31 342.77 27.15 7.9% 5.60 21.55 6.3% 315.62

NOTE:-LOSS REDUCTION WILL START FROM 2007-08 TO 2009-10,DATA BASE TAKEN

FROM IR REPORT UPDATED ON 19.12.2006

Format – B




POSITION AS ON 2015-16

Sr.

No.

Name of

Division

Cost of

Projects

Input

Energy

Total Loss

(As per IR)

Commercial Loss Technical Loss

( As per DPR)

Total sale

1 Ballarpur Crores MU’s % MU’s MU’s % MU’s % MU’s

1 10 11 12 13 14 15 16 17

20.31 375.74 21.64 5.8% 4.19 1.1% 17.45 4.6% 354.10



84

ANNEXURE VI

Format-B




POSITION AS ON 2011-12 TO 2015-16

Sr.

No.

Name of

Division

Cost of

Project

Reduction in

Total Losses

Reduction in

Technical

Losses

Reduction in

Commercial

Losses

Increase In

Sales

1 Ballarshah Crores MUs % MUs % MUs % MUs %

1 18 19 20 21 22 23 24 25

20.31 5.53 2.2% 4.10 1.6% 1.42 38.48 10.87

%



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