Section 6 in The West Bengal Electricity Regulatory Commission (Balancing and Settlement Code) Regulations, 2008
6. Opening of Letter of Credit.
- All the entities covered under UI mechanism in pursuance to regulation 5.1.2 of the Tariff Regulations shall open the irrevocable, revolving, unconditional and non-recourse letter of credit in favour of the said "SLDC-U1 Fund-WBSETCL" for an amount of Rs. 10 lacs each with a nationalized / scheduled commercial bank, having Branch Office in Kolkata at initial stage of starting of its operation in the State Grid. Subsequently, after three months of operation from the date of starting of operation of UI, the amount of LC shall be modified within next one month on the basis of entitiy's UI charge payable amounts for two weeks those are the highest in the last three months subject to the condition that such amount shall be at least of Rs. 10 lacs. Thereafter, in the month of April of every year after 2008; the said amount of LC shall be modified by the entity concerned to an amount equal to entity's UI charge payable amounts for two weeks those are the highest in the last financial year subject to the condition that such amount shall be at least Rs. 10 lacs. The cost of LC shall be borne by the concerned entity.
