Tuesday, 6 October 2015

Tariff for GAIL's Cauvery basin network slashed by half: Too many inconsistencies in the cost data, says regulator

GAIL has claimed a total capex of Rs. 233.54 crore for its its Narimanam and Kuthalam (NKM) sub-network from 2008-09 till the end of its economic life in 2024-25, whereas capex for Ramnad sub-sector (RMD)network was also claimed to be Rs. 29.31 crore of the years starting from 2008-09 to 2026-27.
The PNGRB however finds that the figures do not match up to what the verified data shows
8The operating expenses submitted by GAIL for the  NKM sub-network is Rs. 299.23 crores from 2008-09 to 2024-25, and for the RMD sub-network, it is Rs. 324.98 crores,from 2008-09 to 2026-27..
8However, the total opex figures for Cauvery Basin Network from 2008-09 to 2013-14, as certified by the CA do not match with the figures given out by GAIL
8In addition to opex, GAIL has also considered 0.3% of the throughput as unaccounted gas loss, as a cost to be recovered through the transportation tariff, amounting to Rs. 41.37 crore from 2008-09 to 2024-25 for NKM network and Rs. 59.62 crore from 2008-09 to 2024-25 for the RMD network.
8PNGRB is not happy about factoring in the unaccounted gas loss into the tariff structure.

For more details visit indianpetroplus.com

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