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Union of India - Section

Section 23 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019

23. Initial Spares.

- Initial spares shall be capitalised as a percentage of the Plant and Machinery cost, subject to following ceiling norms:
(a) Coal-based/lignite-fired thermal generatingstations - 4.00%
(b) Gas Turbine/Combined Cycle thermalgenerating stations - 4.00%
(c) Hydro generating stations including pumpedstorage hydro generating station - 4.00%
(d) Transmission system    
(i) Transmission line - 1.00%
(ii) Transmission Sub-station    
- Green Field - 4.00%
- Brown Field - 6.00%
(iii) Series Compensation devices and HVDC    
Station - 4.00%
(iv) Gas Insulated Sub-station (GIS)    
- Green Field - 5.00%
- Brown Field - 7.00%
(v) Communication system - 3.50%
(vi) Static Synchronous Compensator - 6.00%a
Provided that:i. Plant and Machinery cost shall be considered as the original project cost excluding IDC, IEDC, Land Cost and Cost of Civil Works. The generating company and the transmission licensee for the purpose of estimating Plant and Machinery Cost, shall submit the break-up of head wise IDC and IEDC in its tariff application;ii. where the generating station has any transmission equipment forming part of the generation project, the ceiling norms for initial spares for such equipment shall be as per the ceiling norms specified for transmission system under these regulations.Chapter - 7 Computation of Additional Capital Expenditure