Everest Power Private Limited Detailed Project

Report
MARCH 2003

COMMENTS:

8. Electro Mechanical and Transmission System:

a) Electro Mechanical Works

i) In the drawing No. MAL-P-15 “Generator Floor” rail track

arrangements has not been indicated. It is also not clear
how the handling of transformers is proposed to be carried
out.

RESPONSE:

For the installation of Generator step up transformers, the transformers

would first be brought near the rail track laid at service bay floor at EL
1926 by the help of PH crane. The transformers would then be taken to
the respective locations by pulling one by one. The same procedure has
to be followed while taking out the transformers for maintenance/repair.
In some cases one or two healthy transformers may first have to be taken
out to service bay, before removing the faulty transformer.

The revised drawing no. MAL-P-15(R1) indicating rail track may please be
seen in the revised Drawings Volume.

COMMENTS:

ii) To understand the placement of the different equipment the

drawings showing different floor plans, L-section of the
power house, including the control room plan may be
supplied.

RESPONSE:

The followings drawings may please be seen in the revised Drawings

Volume:

1. MAL-P-13(R1) Power house cross section

2. MAL-P-14 (R1) Turbine floor plan at EL 1917M
3. MAL-P-14A Generator floor plan at EL 1922M
4. MAL-P-15 (R1) Service bay floor plan at EL 1926M
5. MAL-P-15A L-Section of the Power House

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The detailed layout of the control room would be prepared at the detailed
design stage.

COMMENTS:
iii) There is provision of 2 no. 500 KVA DG sets at a cost of Rs.
25 lac each in the special tools and plants in Annexure-10
and another 500 KVA DG set at cost of 30 lac to meet the
emergency in the operation of the power house at “Annexure
C”. Cost difference in the same capacity DG sets needs to be
clarified. Also DG sets provided for construction purpose can
be utilized for emergency purposes during operation of power
house and should be deleted from the cost estimate of electro-
mechanical equipments.

RESPONSE:

The cost of 500KVA Diesel Set covered in E/M works has been reduced to 25
Lakhs from 30 Lakhs and revised estimated of E/M works is enclosed.

For emergency power supply to power house, it would be preferable to

use a new D.G. set. The DG sets used during construction are proposed
to be utilized as source for back up supplies to colony and dam site.

COMMENTS:
b) Transmission System

As per the proposal in the DPR the generated power is to be

injected into HPSEB grid at 132KV sub-station Bajaura through 45
Kms D/c 132 KV line. This can not be accepted as the evacuation
system of HPSEB, beyond Bajaura is not adequate. Moreover,
expansion of Bajaura sub-station may not be agreed upon by
Airport Authority of India. Alternative proposal envisaged by
HPSEB for the evacuation of power from this project was
communicated to you vide letter dated 8.1.2002 (copy enclosed).

In view of the above proposal, step up voltage of the power house

will change. Accordingly ratings of generator, transformer and
associated switchgear will have to be changed.

The transmission line estimate should also incorporate the

terminal equipments at the receiving sub-station as the same has
not been provided in the present DPR.

Provision of 75% of installed capacity of the project i.e. 75 MVAR

shunt capacitors may also be made in the cost estimate as it is
required as per CEA guidelines.

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RESPONSE:

The Chapter on transmission and estimates of transmission system have

been revised (attached herewith) and 220KV transmission system is
adopted for evacuation of power upto the Powergrid pooling station at
Parbati. The rating of step up transformers and associated switchgear
have suitably been revised and incorporated in the revised Chapter -9 on
E&M equipment which is attached herewith.

In the revised estimates of transmission line, the cost of terminal

equipment to be installed at Parbati station of PGCIL, to be shared by
Malana-II HEP has also been included.

Regarding the provision of shunt capacitor, it is to be mentioned that the

CEA have since revised their guidelines. The TEC of transmission
system is now issued by them subject to the condition that the provision
of shunt capacitor would be made by the beneficiaries.

The following documents are enclosed:

1. Revised Chapter on E&M Equipments.

2. Revised Chapter on Transmission System
3. Single line diagram MAL-P-18 (R1)
4. Revised Estimates of E & M and Transmission equipment.

2.APRIL 2003

A. Electro-Mechanical and Transmission

Comments
1. Drawing No. MAL-P-15 “General Floor” may be modified by indicating rail
track arrangement.

Response

Revised drawing no. MAL-P-15 (R1) indicating rail track was already
submitted vide our letter dated 14th March 2003.

Comments
2. The drawing showing different floor plans, L-sections of power
house i.e., control room plan may be supplied.

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Response
The following drawings have already been enclosed along with our letter
dated 14th March 2003.

1. Power house cross-section MAL-P-13 (R1)

2. Turbine Floor Plan at EL 1917 MAL-P-14 (R1)
3. Generator Floor plan at EL 1922 MAL-P-14 A
4. Services bay floor plan at EL 1926 MAL-P-15 (R1)
5. L-section of Power house MAL-P-15A

Detailed layout of control room would be worked out at the detailed design
stage.

Comments
3. Provision of terminal equipment required for interfacing of project
lines with the Parbati pooling station be made in the DPR as the
power evacuation system has been changed from 132 KV D/C line
between power house and Sarabai sub-station to 220 KV D/C line
between project to Parbati pooling station.

Response

Provision for terminal equipment has been made. This was reflected in the
revised cost estimates of E&M equipment enclosed herewith. This was
also clarified vide revised Chapter 10 Transmission System of our
submission dated 14th March 2003.

Comments
4. In the item no. 9.2.10 LTAC supply system it has been envisaged to
install 5 MVA, 220/11 KV station service transformer. Generally, such
a small rating transformer of 220 KV is not manufactured. The same
may kindly be confirmed from the manufacturer and accordingly the
capacity of transformer and cost estimate, thereof, may be revise.

Response

In line with your observation transformer with rating of 5 MVA 220/11 KV is

not manufactured. The minimum size would be around 10 MVA. The
capacity and the cost of this transformer have been revised suitably in the
revised estimates of E&M equipment attached herewith. The revised
Single Line Diagram i.e. Drawing No. MAL-P-18 is attached herewith.

Comments
5. The cost of 220 KV line has been assumed as Rs. 37 lac per KM. The
detailed estimate be supplied for the same.

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Response

The cost of 220 KV double circuit line is based on the estimated current
market rate obtained from the potential contractors.

Comments
6. The beneficiary for the generated power be identified and letter of
comfort from the beneficiary be supplied.

Response

It is proposed to sell the power to Power Trading Corporation, who in

turn, would identify the beneficiary of the power. The PPA would be
between Everest Power Private Limited and Power Trading
Corporation.

Comments
7. Provision of 75% of installed capacity of the project i.e., 75 MVAR
shunt capacitors may also be made in the cost estimate as it
required as per CEA guidelines.

Response

Shunt capacitor would need to be installed at the load centre and not at
the pooling station at Parbati. In line with the revised CEA guide lines, we
would include necessary condition in the agreement with the beneficiaries
regarding installation of shunt capacitor in their systems.

3. DECEMBER 2003

ELECTRO-MECHANICAL AND TRANSMISSION SYSTEM:

Observation:

“(i) In the revised DPR, the cost of generating equipment from earlier submitted as Rs.
5198.85 lacs has been increased to Rs. 7541.52 lacs. The reason for the increase along
with the budgetary quotes may be submitted for reference and record.”

Response:

The cost estimates for main generating equipment and balance of plant are revised based
on based on the budgetary offers and also keeping in view the following changes:

a. The length of 11KV bus ducts required has been increased from 135m (single
phase) to 175 based on the estimated length worked out by BHEL.

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b. The capacity of station service transformer has been increased from 1000KVA to
2500KVA.

c. GIS has been replaced with open switchyard on the right bank of the river.

The revised cost estimates of Electrical & Mechanical Equipment are at Annexure-I.

Observation:

(ii) As pointed out earlier, it may be confirmed if 5 MVA, 220/11KV transformer is

available in the market. Otherwise the capacity of the transformers be revised along
with write up and estimate accordingly.”

Response:

Based on the budgetary offers now received, it is gathered that manufacture of 5 MVA,
220/11KV transformer is also feasible. The estimated cost however has been revised
based on the budgetary offer and suitably incorporated in Annexure-I.

Observation:

(iii) The detailed estimate of the per Km. cost of 220 KV line as desired has not been
appended.

Response:

The estimate of 220KV double circuit line has now been revised based on the budgetary
offer received from PGCIL. The cost estimates for transmission line along with the cost
estimates of terminal equipment is furnished at Annexure-J.

Observation: (iv) Since it has been proposed to sell the power to ‘Power Trading
Corporation’ letter of comfort from the company be obtained and appended in the DPR”.

Response: A Copy of the MOU signed with Power Trading Corporation is enclosed as
Annexure – K.

Observation: (v) As pointed in the earlier letter, the provision for the shunt capacitor as
per CEA guidelines in item no. 2 has not been made. The same may be appended in the
DPR.

Response: The shunt capacitors would be required to be installed at load centres and not
at Power House Bus bars. These aspects would be taken care of while finalizing Power
Purchase Agreement with PTC. This is in line with the practice being presently followed
in the Central Electricity Authority.

Observation: (vi) Sales tax has not been calculated properly. It should be levied on the
basic cost plus excise duty as per the general practice.

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Response: Necessary corrections in computing Sales Tax have been made in preparing
the Revised Estimates.

Observation: (vii) In the cost estimate Annexure B, item 4 and 7 provision has been made
for 132/11KV step down transformer and 220KV feeder bays respectively.

Response: Necessary corrections regarding the voltage ratio of step down transformer
and feeders bays etc. have been incorporated in the Revised estimates.

Observation: (viii) In the single line diagram MAL-P-128 (R) outgoing feeder isolators
have been indicated without earth blades. These should have been with earth blades.

Response: For the outgoing feeder isolators provision of earth blades has now been
indicated in single diagram as required vide Drawing no. MAL-P-36.

Observation: Since the sharing of terminal charges at Parbati pooling point shall be
finalised with Power Grid, it may be clarified whether the capital cost is to be shared by
the beneficiaries or to be recovered through the wheeling of power.

Response: As per PGCIL, the capital cost of the pooling point has to be shared by the
beneficiaries.

4.MARCH 2004

4. ELECTROMECHANICAL AND TRANSMISSION:

Observation:

(i)The cost of generating equipments were increased from 5198.85 lacs to Rs.
7541.52 lacs and now the same has been increased to Rs. 8860.39 lacs. In the
reply, it has been stated that revised cost are based on the budgetary offers,
but the quotes from the manufacturers have not been supplied. The cost of
generating and other equipments are too much on higher side, which needs to
be reviewed or budgetary quote from manufacturers need to be supplied for
all the equipments. Besides, there are quite a good number of typographical
mistakes in the cost estimate, which also need to be corrected.

Response:

a. The cost of generating equipment is based on the budgetary offer received from
M/s. BHEL vide their letter No. MS-1-03-E-0501 dated 15.11.2003, a copy of the
same is enclosed as Annexure C. M/s. BHEL have indicated a price of Rs. 6910

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lacs from the supply of the following equipment for 2 x 50MW hydro generating
sets.

(i) Penstock butterfly valve

(ii) Main Inlet valves, spherical type
(i) Four jets vertical pelton turbines, digital governors and associated
equipment including model testing, compress air system, cooling water
system, dewatering system.
(ii) Generators and associated equipment
(iii) Digital excitation equipment
(iv) Computerised control and monitoring system
(v) 11KV 3500A, isolated phase busducts, LAVT & NG cubide
(vi) Generator Protection Panels
(vii) Power and Control Cables between BHEL equipment
(viii) 220V DC system

As indicated in the offer, the above prices are inclusive of supply of spare parts
but are exclusive of freight, insurance, site consumables,
erection/commissioning, supervision of erection etc. The prices offered are also
exclusive of excise duty, sales tax and other taxes/duties applicable.

The latest cost estimates of E&M equipment are given as Annexure 1(A)
________ of Annexure N attached herewith. BHEL offer includes all the items
of Annexure 1(A) (Generating Equipment) of estimates and items No. 5,12,13
and partly item 16 of Annexure 1(B), (Electrical Auxiliary equipment of PH &
Switchyard and item 7 of Annexure I(C) (Mechanical Auxiliary equipment of
power house). The total cost of these items of equipment has been kept as Rs.
6910 lakhs in the estimates after making due adjustments for the cost of spares.
The provision for spares is separately indicated in the estimates.

b. The cost of 7 nos. 21.5 MVA, 11/220/√3KV single phase transformers is based
on the budgetary offer received from M/s. TELK Kerala vide their letter No.
MK/Budg/288 dated 24th July 2003. a copy of this letter is enclosed as Annexure
D.

c. As indicated earlier, it is now proposed to provide 220KV outdoor switchyard

which would have 6 bays, two for generator incomings, two for 220KV
transmission lines, one for bus coupler and one for step down transformer. Based
on current market prices, the cost of switchyard equipment has been indicated as
Rs. 1100 lakhs (item 7 of Annexure 1 (B) which includes cost of switchyard @
Rs. 1.65 crores/bay plus Rs. 1.1 crores to cover the cost of cable terminations of
220KV XLPE cables at both ends.

d. The cost of 220 KV XLPE cables @ Rs. 0.38 lakhs per meter/phase (item 8 of
Annexure 1(B)), is based on current market prices.

e. The cost of other minor equipment covered in Annexure (1B) and Annexure 1(C)
of the estimates is also based on the current prices.

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f. It is further to inform that a budgetary offer covering all the equipment of power
house and switchyard was also received from M/s. VA-TECH vide their letter
dated 24.06.2003. The price of all the items of equipment indicated by them are
much higher than the costs indicated in the estimates. A copy of M/s. VA-TECH
letter is also enclosed for ready reference (Annexure E).

g. The cost estimates already submitted have been examined further and the
typographical errors have been rectified. A fresh copy of the estimates is
enclosed.

The budgetary offers may please be treated as “Confidential”.

Observation

(ii) In the cost estimate, Annexure-I(B), Item 4, 5 MVA, 220/11 KV three phase ONAF
step down transformer has been taken, whereas in single line diagram, the capacity of
transformer has been shown as 10 MVA. This needs to be corrected.

Response

Necessary correction with respect to the capacity of stepdown transformer has been made
in the single line diagram. Revised drawing is enclosed as _______________.

Observation

(iii) The cost of Shunt Capacitor has to be included in the cost estimate as per
CEA norms. The needful may be done now or in the alternate reason(s) for
not doing the same be intimated along with supporting documents, if any.
Response

As indicated earlier by us, the shunt capacitors are normally not required to be installed at
the sending end i.e. at or near the power house. For voltage/power factor correction
purposes, shunt capacitors are needed to be installed at load centres. The Central
Electricity Authority, therefore, had not been insisting on the installation of capacitors at
the sending ends. A copy of Techno Economic Clearance issued by CEA for Allain
Duhangan project is enclosed for ready reference as Annexure F. As per the Electricity
Act, 2003, Techno Economic Clearance for transmission schemes is outside the preview
of CEA now.

Further, it is to be informed as per Indian Electricity Grid Code – March 2002, no

equipment is required to be provided at the generating station for voltage/power factor
control. The generating stations are required to generate/absorb reactive power within
the capability limits of the respective generating units only. The relevant extract from
IEGC is enclosed as Annexure G.

Observation

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(iv) As already requested vide Item 3 of our observations conveyed vide letter No. 593-94 dated
24.4.2003, detailed cost estimate of 1 Km line be provided as the cost indicated in the cost
estimate is on higher side.

Response

The estimates of 50 Km, 220KV double circuit line from Malana II PH to Panarsa
pooling station of PGCIL is based on the budgetary offer received from PGCIL vide their
letter No. C.BDD/820 dated 30.06.2003. BOQ of various items of work for the line is
also indicated in this letter. A copy of the letter is enclosed for ready reference as
Annexure H. This information may please be treated as “Confidential”.

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