Like WBSETCL, most of the Power utilities’ follows CBIP manual/guideline for procurement of Transformer

with consideration of Loss Capitalisation method. This method based on Total Owner Cost (TOC) of the
transformer considering Transformer purchase price plus operating/running cost of the transformer due
to its Loss parameters during its total life span. For this all the functional parameters like rate of electricity
charge, bank interest, RBI REPO rate etc. has well been considered for evaluating the operating/running
cost of the transformer due to its Loss parameters during its total life span. So any differential purchase
price of transformer of higher cost would suppose to be compensated with the gain against its lower
operating/running cost during forthcoming years of its life span. Probably this factor is not considered
resulting higher cost to the company for purchasing transformer which might also be apparent. However
as it is a case of financial matter, the view of the corporate Account in this score may be obtained.

Placed for kind information and further necessary action please.

Enclo: Copy of CBIP Manuals (relevant pages).