technical reports, letter correspondence from WRLDC/SLDC, and as stipulated within the Commission’s Order in Case No. 51 of 2013. The Commission agrees that without bus . reactors 400 kV Tiroda-Warora line could not be charged The only issue which came before the Commission was the fact that, the two bus reactors were not included as a part of in principally approved scope of work. Hence, the corresponding capex worth Rs 23.24 Crore was not approved earlier. The Commission had highlighted this fact during the TVS, that the two concerned bus reactors at Tiroda are not covered as part of the present Transmission Licence. Though, the Commission understands the technical requirement of the two 400 kV Bus Reactors, however, the same cannot be considered under the cost of additional capitalization, under present process without undertaking regulatory process of amendment of the Transmission Licence. Unless bus reactors and associated bays are included as part of the asset of the Transmission Licensee (APML-T), it would not be appropriate for the Commission to allow the capitalisation of the costs and other associated costs thereof as part of present Mid-Term Review process. However, these costs including cost of additional capitalisation towards bus reactors and associated bays can be considered at the time of final true up at the end of the control period, upon due regulatory scrutiny and prudence check only after amendment to the Transmission Licence to incorporate such assets as a part of the Transmission Licence. Therefore, in this Order, the Commission restricts the capital cost to Rs 684.60 Crore, which relates to the existing Transmission Licence as approved by the Commission.”
