process of ‘truing up’ requires the DERC
to carry out a prudence check. A prudence check is not a mere ac
counting or mathematical exercise ... prudence check requires a
scrutiny of reasonableness of the expenditure incurred or proposed
to be incurred by the Discoms and also such other factors that
date may be admitted
by the Commission, subject to prudence check:
(i) Deferred liabilities;
(ii) Works deferred for execution;
(iii) Procurement of initial capital spares ... date may be
admitted by the Commission, subject to prudence
check:
(i) Deferred liabilities relating to works/services
within the original scope of work
Bhaskar Shrachi Alloys Limited vs Damodar Valley Corporation on 23 July, 2018
Equivalent citations: AIR
allows recovery of capital cost for
Section 62 Projects only after prudence check based on
detailed scrutiny, so that only justified and reasonable cost
recovery of their
O&M cost, these assets, after due prudence
check, should also be included in the capital
cost and consequential effect
each year based on the actual/audited information and
prudence check by the Commission;
Provided that if such variations are large ... each year based on the actual/audited
information and prudence check by the Commission;
Provided that if such variations are large
Grid Corporation Of Orissa Ltd. vs Western Electricity Supply Company Of ... on 5 October, 2023
Gridco Ltd vs Western Electricity Supply Company Of ... on 5 October, 2023
Author: Abhay S
Committee. We therefore hold that MERC
ought to have conducted a prudence check to
arrive at a conclusion regarding the
correctness of the figures ... derived/determined towards coal costs by the
Expert Committee. Prudence check, however,
does not mean taking linkage coal cost as the
base to grant
Plant at ₹197.70 crores after applying
appropriate benchmarking and prudence checks as against the
TPDDL’s claimed capital cost of ₹320.17 crores. It is noteworthy
