Section 27(3) in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
(3)In case of gas/liquid fuel based open/ combined cycle thermal generating station after 25 years of operation from date of commercial operation, any additional capital expenditure which has become necessary for renovation of gas turbines/steam turbine or additional capital expenditure necessary due to obsolescence or non-availability of spares for efficient operation of the stations shall be allowed:Provided that any expenditure included in the renovation and modernisation (R&M) on consumables and cost of components and spares which is generally covered in the O&M expenses during the major overhaul of gas turbine shall be suitably deducted from the expenditure to be allowed after prudence check.
