The Rajasthan Electricity Regulatory Commission (RERC) has rejected all additional capital expenditure proposals worth Rs. 186.14 crore submitted by Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RVUNL) for its power plants under the Consolidated Scheme for Additional Capitalization for FY 2025-26. The Commission reviewed the proposals under Petition No. 2395/2026 and examined the submissions made by the petitioner, respondents, and other stakeholders under Regulation 17 of the RERC Tariff Regulations, 2025.
The Commission assessed each expenditure proposal individually and concluded that the claims did not meet the regulatory requirements for additional capitalization. It observed that several proposed expenses were related to routine operation and maintenance activities, replacement of equipment, or the management of ageing infrastructure. Consequently, the Commission disallowed the entire set of claims and disposed of the petition.
RVUNL had sought Rs. 10.75 crore for upgrading the railway track siding between Gurla-Tirath Yard at Kota Thermal Power Station (KTPS), Kota, and Rs. 9.42 crore for manning 13 unmanned railway level crossings. The Commission rejected both proposals, noting that Units 1 to 5 of KTPS had completed their useful life and were identified for phased retirement. It found that the long-term justification for these transportation-related investments was insufficient to support additional costs that could ultimately be passed on to electricity consumers.
The Commission also rejected RVUNL’s request for Rs. 4.01 crore to procure four water-cum-foam fire tenders. The utility had proposed replacing the vehicles because their registrations had expired after they exceeded 15 years of age. However, RERC held that replacing routine safety equipment should be covered through normative operation and maintenance expenses instead of being treated as additional capital expenditure.
Several high-value equipment and spare component proposals were also disallowed. These included Rs. 18.24 crore for low-pressure turbine rotor blades and Rs. 36.46 crore for a bladed low-pressure turbine rotor at Chhabra Thermal Power Plant (CTPP). The Commission also rejected Rs. 22.84 crore for a spare generator transformer at the Jhalawar-based KaTPP.
According to the Commission’s assessment, high-value spares and components intended for overhauls and maintenance generally fall within the utility’s regular operation and maintenance responsibilities. Their replacement or procurement does not automatically qualify for additional capitalization under the applicable tariff regulations.
Furthermore, RERC rejected Rs. 6.08 crore proposed for installing an energy chain system at KaTPP, Rs. 58.34 crore for a replacement generator stator at Suratgarh Thermal Power Station (STPS), and Rs. 20 crore for Auto Valve Less Gravity Filters (AVGF) at Chhabra’s CSCTPP.
The Commission found that these proposals primarily addressed operational requirements, maintenance needs, and equipment deterioration rather than demonstrating technological obsolescence or exceptional circumstances warranting additional capital expenditure.
With all individual claims rejected, the Commission disposed of RVUNL’s petition without granting the requested in-principle approval. The order reinforces the distinction between routine maintenance expenses and eligible capital additions for tariff determination, with implications for how utilities justify expenditure that may affect electricity generation costs and consumer tariffs.
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