Section 14 in Jharkhand State Electricity Regulatory Commission (Terms and Conditions for Distribution Tariff) Regulations, 2004
14. Depreciation.
- 14.1 The capital base for the purpose of depreciation shall be the historical cost of the asset.14.2Depreciation shall be calculated annually as per straight-line method at the rate of depreciation as prescribed in the schedule attached to the regulations at Appendix-II:Provided that the total depreciation during the life of the project shall not exceed 90% of the approved original cost.14.3On repayment of entire loan, the remaining depreciable value shall be spread over the balance useful life of the asset.14.4Depreciation shall be chargeable from the first year of operation. In case of operation of the asset for part of the year, depreciation shall be charged on pro-rata basis.
