prudence check.
If the actual expenditure is found to be inflated,
whether by inflating the cost by making purchases
from group companies at high rates ... each scheme. There is no system or procedure in
DERC to check the rate of different items of purchase
numbering thousands after making market surveys
Gvk Power (Goindwal Sahib) Limited vs Punjab State Power Corporation Limited ... on 26 February, 2020
Chhattisgarh State Power Generation ... vs Chhattisgarh State Electricity ... on 30 March, 2016
IN THE APPELLATE
State
Commission's own Regulations and there should be check to
see that actual equity infusion has taken place.
(u) that the mere fact ... without any
prudence check. Most of the end consumers in the state have
their salary not linked to any DA or inflation.
(v) that
escalation rate of 4.2 which is not even sufficient to mitigate the inflation rate.
15. After considering the submissions made by the Appellant ... cent (being the (AGR) is not correct as this does not factor inflation which has to be necessarily taken into account and can not be ignored
tune of Rs. 8556 crore.
4.12 Apart from lack of prudence check on the part of State Commission, the
above noted excessive allowance of fixed ... State
Commission in discharge of its mandate to undertake requisite prudence
check.
Further, since there was a time gap of only about two and half
Cost of fuel;
(b) Costs on account of inflation;
(c) Taxes and duties; and
(d) Variation in power purchase unit cost from
base line level ... process of prudence check for correctness.
(2) The average of such normative operation and
maintenance expenses after prudence check shall
be escalated at the rate
without carrying out
any prudence check and Impugned Order clearly shows that there was no exercise of
prudence check.
14) Per contra, the following contentions ... inflation index,
the inflation data for FY 2011-12 and FY 2012-13 had been utilized for computation of
inflation factor, which comes
rate of inflation as measured by WPI) over the
approved amount of previous year approved figure without
checking the prudence of expenditure and without giving ... basis of percentage over previous audited
figures audited by CAG after prudence check.
(e) Section 61 of the Electricity Act, 2003 provides that the
appropriate
appellant, is inflated.
Scrutiny of such aspect, whether for grant of in-principle approval or at
the stage of prudence check, will have
