RInfra Reply to Pre Datagaps in Licence Application 040511

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    Preliminary Data Gaps in Distribution License Application

    submitted by RInfra

    1. The Application Form for Distribution Licence in the State of Maharashtra [Pursuant toRegulation 5.1 of MERC (General Conditions of Distribution Licence) Regulations, 2006,

    dated 27th November 2006] mandates that the applicant needs to submit Supporting

    information on compliance with the additional requirements prescribed by the Central

    Government, as may be applicable (Item No. 12 of Part B of the application form).

    Accordingly, M/s RInfra needs to provide a declaration, under affidavit, as required under the

    Requirement of Code of Conduct (Rule 4) of the Distribution of Electricity Licence

    (additional requirements of Capital Adequacy, Creditworthiness and Code of Conduct)

    Rules, 2005, issued by the Central Government.

    M/s RInfra is advised to submit the above by May 2, 2011, close of business hours, failing

    which, the Commission may not be in a position to admit the application for Grant of

    Distribution License of RInfra.

    RInfra Response:

    As directed, the aforesaid declaration, under Affidavit, has been submitted to the Honble

    Commission on May 02, 2011.

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    Reference in the

    regulationsInformation Requirement Data Gaps

    specified their TOP 5 projects as

    required in the MERC format.

    evaluation.

    Part C (2)

    With regard to the employment of

    contractors, there is no mention of

    whether they will employ EPC/other

    contractors or not. If yes, they have

    not mentioned who they would

    employ

    The applicant needs to mention if

    they will employ contractors or not.

    If yes, the applicant needs to provide

    details.

    Part C (5)Details of the financial soundness of

    subsidiaries has not submitted saying

    it is not applicable

    The applicant needs to provide the

    details in the prescribed format at

    the evaluation stage.

    RInfra Response:

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    as specified in the National Electricity Policy and also the Distribution of Electricity Licence

    (Additional requirements of capital adequacy, creditworthiness and code of conduct) Rules 2005.

    However, the villages of Chene and Varsova are not to be construed as Rural Area as they are

    part of Mira-Bhayandar Municipal Corporation and also vide a GOM notification dated 10 th

    January 1990 under Bombay Village Panchayats Act 1958, it has been declared by GOM that

    with effect from the 10th day of January, 1990, the local area comprising the revenue village

    Chene, Varsova, etc. shall cease to be villages. (GOM notification attached.)

    Thus, the proposed area of supply for which the Licence application has been filed by RInfra

    does not contain any Rural Area. Therefore, we have not provided any program for rural

    electrification. However once the licence is granted, in order to carry out any network extension

    in the proposed area of Chene and Varsova, RInfra-D will follow the guidelines specified by

    MERC for approval of CAPEX projects.

    Part C (1):

    Details regarding TOP 5 Projects:

    11 kV Mains

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    Scheduled

    Date2006-07 2008-09 2006-07 2005-06 2007-08

    Actual Date 2009-10 2009-10 2007-08 2006-07 2008-09

    Commercial

    Operations-- -- -- -- --

    Scheduled

    Date2006-07 2008-09 2006-07 2005-06 2007-08

    Actual Date 2009-10 2009-10 2007-08 2006-07 2008-09

    Project Cost (Rs

    Crore) The relevant details are set out in Annexure 18.

    Estimated

    Cost112.35 57.95 29.96 123.42 40.15

    Actual Cost

    onCompletion

    79.51 93.50 24.89 93.94 26.67

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    AMC for Repair of Electrical Appliances & Instruments Bill Distribution, etc

    Most of the contractors presently employed are labour contractors and they dont have any

    significant stake in O&M.

    Part C(5):

    Details of the Financial Soundness of the Subsidiaries:

    The Annual Reports of last three years, i.e. FY2007-08 to FY2009-10 respectively are attached

    as Annexures 7 to 9 with the RInfra-D Licence Application Form. The chapter on Management

    Discussion and Analysis contains both financial and product details of each of the subsidiary

    businesses of RInfra.

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