Section 2012(iv) in The West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2011
(iv)Any one time proceeds accruing to the licensee or generating company from sale of its assets and invested in creation of new asset in electricity business of the company, or licensee, will be treated as equity invested by the generating company or licensee itself and book value of the asset sold will be deducted from the asset valuation. ROE on such equity shall be applicable to the licensee or generating company, but the said investment will be deducted from project cost during computation of depreciation for tariff determination.
