Summary:

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### **1. PETITION OVERVIEW**

* **Petitioner:** Himachal Pradesh Power Transmission Corporation Limited (HPPTCL)
* **Respondents:** Himachal Pradesh State Electricity Board Limited (HPSEBL) and Others
* **Subject:** A petition filed under the **Electricity Act, 2003** and relevant CERC regulations for:
1. **Truing up** of the transmission tariff for the **2019-24** period (adjusting past tariffs based on actual costs).
2. **Determination** of the transmission tariff for the **2024-29** period (setting future tariffs).
* **Assets Involved:** The petition pertains to **three (3) Inter-State Transmission System (ISTS) assets** owned by HPPTCL.

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### **2. PROCEEDINGS & COMMISSION’S DIRECTIONS**

During the hearing, the Petitioner’s counsel confirmed the petition’s purpose. The Commission then issued the following procedural and substantive directions:

**A. Procedural Timeline:**
1. **Notice** to be issued to all Respondents.
2. **Respondents** must file their **replies (on affidavit) within two weeks**, with an advance copy to HPPTCL.
3. **HPPTCL** may then file its **rejoinder within one week**.

**B. Specific Information Sought from HPPTCL (on affidavit within two weeks):**
The Commission directed HPPTCL to provide the following critical documents and justifications:
1. **Justification for Weighted Average Rate of Interest (WAROI):** HPPTCL must explain its use of a **10% WAROI** in its calculations.
2. **Tax Documentation:** Submission of **Assessment Orders or Income Tax Returns** for Minimum Alternate Tax (MAT) for Financial Years **2022-23 and 2023-24**.
3. **Detailed Note on Disputed Financial Components:** A comprehensive explanation claiming:
* **Interest on Loan (IoL)** for Asset-1.
* **Return on Equity (RoE)** for all assets in this petition.
* **Critical Context:** The Commission had previously **disallowed** these very components (IoL & RoE) in its past orders dated **16.5.2016 (Petition 119/TT/2014)** and **27.9.2021 (Petition 305/TT/2020)**. HPPTCL must now justify why these claims should be reconsidered.
4. **Auditor’s Certificates:** Submission of auditor-certified statements for the assets covering both the **2019-24 and 2024-29 tariff periods**.

**C. Next Hearing Date:** The petition is scheduled for the next hearing on **19 February 2026**.

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### **3. KEY BUSINESS & REGULATORY IMPLICATIONS**

* **Regulatory Scrutiny:** CERC is subjecting HPPTCL’s tariff claims to **rigorous scrutiny**, especially on financial parameters that have been contentious in the past.
* **Critical Financial Disputes:** The core of the inquiry revolves around **Interest on Loan (IoL)** and **Return on Equity (RoE)**, which are major components of the tariff. HPPTCL’s ability to successfully justify these claims, contrary to past rejections, will significantly impact the final approved tariff and its revenue.
* **Data-Driven Justification:** The Commission demands **concrete evidence and detailed justifications** (WAROI rationale, tax proofs, auditor certifications) rather than mere claims, emphasizing **prudence and transparency**.
* **Historical Precedent:** HPPTCL faces an uphill task as it must argue against the **Commission’s own past decisions** that disallowed similar claims. This indicates a potentially significant regulatory hurdle.
* **Impact on Tariff:** The outcome of this petition will determine the **transmission charges** that HPPTCL can levy on users (like HPSEBL) for using its three ISTS assets for the next five years (2024-29) and will settle accounts for the previous five years (2019-24).

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Summary:

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## **1. Overview**
This document is a **Record of Proceedings (ROP)** from a hearing before the **Central Electricity Regulatory Commission (CERC)**. The hearing pertains to **Petition No. 11/TD/2026**, filed by **Adarsh Stainless Private Limited (ASPL)** seeking **upgradation of its inter-state electricity trading licence** from **Category IV to Category III**.

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## **2. Key Details**
– **Petition Filed Under**:
– **Section 14** of the Electricity Act, 2003
– **Section 15(1)** of the Electricity Act, 2003
– **Regulation 15(1)** of the CERC (Procedure, Terms and Conditions for grant of trading licence and other related matters) Regulations, 2020
– **Regulation 9(4)** of the same Regulations
– **Petitioner**: Adarsh Stainless Private Limited (ASPL)
– **Date of Hearing**: 2.1.2026
– **Bench (Coram)**:
– Shri Jishnu Barua, Chairperson
– Shri Ramesh Babu V., Member
– Shri Harish Dudani, Member
– Shri Ravinder Singh Dhillon, Member

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## **3. Commission’s Directions**
The Commission directed ASPL to **submit the following documents on affidavit within one week**:
1. **Auditor’s Report** and **Notes to Accounts** as prescribed under the **Companies Act, 2013**.
2. These must pertain to the **special balance sheet as on 15.11.2025**.
3. The submission must include **details of loans and advances to, and investments made in, associate entities** (if any).

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## **4. Order Reserved**
– Subject to the above compliance, the **Commission reserved its order** in the matter.
– The order will likely be issued after reviewing the submitted documents.

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## **5. Implications**
– **Licence Upgradation**: Upgradation from Category IV to Category III allows for **higher trading volumes** and expanded market participation.
– **Compliance Requirement**: ASPL must provide detailed financial disclosures, ensuring **transparency and regulatory compliance**.
– **Regulatory Scrutiny**: The Commission is conducting **due diligence** before approving the upgradation.

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