No.: F.11(99)/2001-Power/ - In exercise of the powers conferred by section 15,16,60 and other applicable provisions of the Delhi Electricity Reform Act, 2000 (Delhi Act No.2 of 2001), the Government of National Capital Territory of Delhi hereby amends the Delhi Electricity Reform (Transfer Scheme) Rules, 2001 published vide Notification No.F.11(99)/2001-Power/2867 dated 20th November, 2001 as under :-

These rule may be called the Delhi Electricity Reform Transfer Scheme (Amendment) Rules, 2002.

These rules shall come into force on the same date as the Delhi Electricity Reform (Transfer Scheme) Rules, 2001 published on 20th November 2001 is made effective by the Government of the National Capital Territory of Delhi.

In the Transfer Scheme Rules the following shall stand inserted as sub rule (3) of Rule 8. ''(3) Notwithstanding anything contained in these rules including the schedules, the liabilities arising out of the litigation, suits, claims, etc pending on the date of the transfer and/or arising due to events prior to the date of the transfer shall be borne by the relevant distribution company viz DISCOM 1, DISCOM 2 and DISCOM 3 respectively, subject to a maximum of Rs.1 crores per annum. Any amount above this shall be to the account of the Holding. Company in the event for any reason the commission does not allow the amount to be included in the Revenue Requirement of the DISCOM".

In the Transfer Scheme Rules in place of existing item 3 Notes to accounts of Part II of Schedule B the following be substituted. "GENCO shall undertake to repay the loan payable to holding Company in this part, within thirteen years from the date of the transfer with a moratorium for the first four years on both interest and principal repayment. There after the loan would carry interest at the rate of 12% per annum and would be repaid in eighteen equal half yearly installments".

In the Transfer Scheme Rules in place of existing item 3 of Notes to Accounts of part II of Schedule C the following be substituted. "TRANCO shall undertake to repay the loan payable to Holding Company mentioned in this part, within thirteen years from the date of transfer with a moratorium for the first four years on both interest and principal repayment. There after the loan would carry a interest rate of 12% per annum and would be repaid in eighteen half yearly installments".

In the first sentence, after the words "Concerning Distribution" the following be added "of the area as specified in Part I of schedule `H'".

In the Transfer Scheme Rules in place of existing item 3 of notes to Accounts of Part II of Schedule D the following be substituted. "DISCOM 1 shall undertake to repay the loan payable to Holding Company mentioned in this part, within thirteen years from the date of the transfer with a moratorium for the first four years on both interest and principal repayment. There after the loan would carry a interest rate of 12% per annum and would be repaid in eighteen equal half yearly installments.

Provided further that, as per the provisions of Policy Directions issued by the Government , in case of cumulative underachievement at the end of fourth year, the waiver on the interest and moratorium on principal repayment on loan payable to Holding Company will be extended to the fifth year. The principal repayment after such moratorium shall be in eighteen equal installments".

In item 6 of notes to account of part II of Schedule D the following be added at the end. "Provided however in respect of receivables due for the period till 31st March 2002 from Municipal Corporation of Delhi and the Departments, Body Corporates and Institutions owned and / or controlled by the Government of National Capital Territory of Delhi the Holding Company shall be entitled to waive or notify that it will enter into any other arrangement for recovery of dues, instead of the arrangement of recovery through DISCOM 1".

The following be added as Note 7 in the Notes to Accounts "7. In respect of cost and expenses which the DISCOM 1 is required to incur concerning Installation of distribution system as per the contracts entered into by the board to which Contracts DISCOM 1 succeeds as as per these Rules, the DISCOM 1 shall be entitled to claim the same as capital expenses of its distribution business".

In the first sentence, after the words "concerning Distribution" the following be added " of the area as specified in Part II of Schedule `II'".

In the Transfer Scheme Rules in place of existing item 3 of Notes to accounts of part II of Schedule E the following be substituted. "DISCOM 2 shall undertake to repay the loan payable to Holding Company mentioned in this part, within thirteen years from the date of the transfer with a moratorium for the first four years on both interest and principal repayment. Thereafter the loan would carry interest at the rate of 12% per annum and would be repaid in eighteen equal half yearly installments.

Provided further that, as per the Provisions of Policy Directions issued by the Government, in case of cumulative underachievement at the end of fourth year, the waiver on interest and moratorium on principal repayment on loan payable to Holding Company will be extended to the fifth year. The principal repayment after such moratorium shall be in eighteen equal half yearly installments".

In items 6 of Notes to account of Part II of Schedule E the following would be added at the end ."Provided however in respect of receivables due for the period till 31st march, 2002 from Municipal Corporation of Delhi and the Departments, Body Corporates and Institutions owned and /or the Holding Company shall be entitled to waive or notify that it will enter into any other arrangement for recovery of dues, instead of the arrangement of recovery through DISCOM 2".

The following be added as Note 7 in the Notes to accounts "7. In respect of costs and expenses which the DISCOM 2 is required to incur concerning installation of distribution system as per the contracts entered into by the Board to which contracts DISCOM 2 succeeds as per these Rules, the DISCOM 2 shall be entitled to claim the same as capital expenses of its distribution business."

In the first sentence, after the words " concerning Distribution" the following be added" of the area as specified in Part III of Schedule `II'".

In the Transfer Scheme Rules in place of existing item 3 of Notes to Accounts of Part II of Schedule F the following be substituted. "DISCOM 3 shall undertake to repay the loan payable to Holding Company mentioned in this part, within thirteen years from the date of transfer with a moratorium for the first four years on both interest and principal repayment. Thereafter the loan would carry interest at the rate of 12% per annum and would be repaid in eighteen equal half yearly installments.

Provided further that, as per the Provisions of Policy Directions issued by the Government, in case of cumulative underachievement at the end of fourth year, the waiver on interest and moratorium on principal repayment on loan payable to Holding Company will be extended to the fifth year. The principal repayment after such moratorium shall be in eighteen equal half yearly installments".

In item 6 of notes to account of part I of Schedule F the following be added at the end. "Provided however in respect of receivables due for the period till 31st March 2002 from Municipal Corporation of Delhi and the Departments, Body Corporates and Institutions owned and / or controlled by the Government of National Capital Territory of Delhi the Holding Company shall be entitled to waive or notify that it will enter into any other arrangement for recovery of dues, instead of the arrangement of recovery through DISCOM 3".

The following be added as Note 7 in the Notes to accounts "7. In respect of costs and expenses which the DISCOM 3 is required to incur concerning installation of distribution system as per the contracts entered into by the Board to which contracts DISCOM 3 succeeds as per these Rules, the DISCOM 3 shall be entitled to claim the same as capital expenses of its distribution business."

The following be added in Part I of Schedule C as Item V. "The TRANSCO and DISCOM 1, DISCOM 2 and DISCOM 3 shall be entitled to sign a Shared Facilities Agreement in respect of such of the shared facilities and the same shall be binding on the parties".

(Ramesh Chandra)
Principal Secy (Power)

No.: F.11(99)/2001 -Power/207-214