Administration Manual - B.E.S.T. Undertaking.

GENERATION OF ELECTRICTY FUND :
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A separate fund called as 'Generation of Electricity Fund' was created vide BCR No.
348 dt. 17.8.95 and by Corporation vide C.R.No. 599 dated 21.9.95.
This fund has been created in terms of Section 460 II of the MMC Act 1888, with
approval of the Brihan Mumbai Mahanagar Palika, to meet the expenditure to be incurred
for generation of electricity.
In the initial stage we had planned to generate 300 Megawatt at the rate of Rs. 4
Crores per Megawatt, the total cost works out to Rs.1200 Crores. Power Finance
Corporation, New Delhi, was the main financial institution of funds for generation of
Electricity Projects. As per rules of P.F.C., 30% contribution has to be from the generating
agency and 70% of the requirement can be given by P.F.C. as financial assistance/loan.
Therefore, for total expenditure of Rs. 1200 Crores, BEST Undertaking should have Rs. 360
Crores as capital investment in this project, over a period of time of its completion which
was expected to be about 3-4 years.
Accordingly, as approved an amount of Rs. 25 Crores was to be set aside or entire
surplus whichever is less every year from the financial year 1994-95, to the credit of
Generation of Electricity Fund. The amount so credited is invested in accordance with the
provision of Section 460 JJ (1) of the MMC Act 1888. The interest earned on this investment
and maturity proceeds if any of the Generation of Electricity fund is required to be
reinvested in the same fund.
The investment under this fund is made in accordance with the provision under
Section 460 JJ (1) of the MMC Act as follows :
1. Term Deposit with Banks who are on approved list of the Undertaking.
2. In Public Securities.