2)           There has been wide variation in the actual monthly fuel expenditure as compared to the figures approved by MERC, (Statement II). This requires reestimation of the fuel expenditure on generation and purchase based on the actual fuel cost for September 2000.


          The Rajadhyaksha Committee appointed by the GOM has made recommendation, to improve the finances of MSEB, that the scope of FCA should be expanded to cover the costs, which are outside the control of the Board.

          The legal aspects of this matter has been verified and it has been confirmed that Board can recover the additional costs (over and above to the extent considered in the tariff) incurred by it by way of a surcharge so as to maintain the statutory surplus.

          Income Tax payable to NTPC was not considered by the Hon'ble Commission in the tariff fixed for the year 2000-2001. Therefore, the Income Tax Liability of Rs.101.15 crores for 1998-99, Rs.140.49 crores for 1999-2000 and an estimated Rs. 144 crores for 2000-2001 payable to NTPC by MSEB in this year is considered at item (II) in Statement-1.

         Accordingly, an amount of Rs,520.79 crores is recoverable for the period October 2000 to March 2b0l (Sr. No.VI, Statement 1).

3)           The actual fuel expenditure for the period May 2000 to September 2000 is Rs.49.47 crores in excess of the amount recovered through tariff, in consideration of basic fuel cost approved by the Hon'ble Commission. (Statement II).

4)          The total fuel cost recoverable for the period October 2000 to March 2001 is thus estimated at Rs.570.25 crores. (Sr.No.VIII, Statement - I). This includes increase of Rs.520.79 crores in the expenditure for October 2000 to March 2001 plus the under recovery of Ps.49.47 crores during May, 2000 to September, 2000 as at (2) & (3) above respectively. This amount is proposed to be recovered through the FCA liable sale for December 2000 to March 2001.