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5.3 The Appellant has claimed O&M expenses as uncontrollable.

However, the Regulation 23.2(h) of the MYT Regulations, 2011 provides O&M Expenses as controllable factor.

5.4 The Appellant has claimed that the project of double circuit line for connectivity of East to West through 220 KV sub-stations was kept on hold as the network development plans were revised due to reduction in estimated demand. The Appellant has approached the State Transmission utility (GETCO) for connectivity at 220KV level at its switchyard and as per discussions with the STU this part of the 220 KV network was to be created by Appellant on behalf of GETCO. The available material for the East to West 220 KV sub-station, which was kept on hold was utilised to the extent possible. However, certain items could not be used due to difference in technical specifications. The material which could be of future use has been transferred to the stores and the balance items have been scrapped and written off to the extent of Rs. 2.48 Crore and claimed as part of O&M expenses. The Appellant had submitted that the variation in O&M expenses on account of the above should be considered as uncontrollable. Hence, in the present Appeal, the Appellant has allegedly claimed the entire O&M expenses as uncontrollable for sharing of gains/losses.