Section 14 in Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for Tariff determination of energy from Renewable Energy Sources) Regulations, 2017
14. Depreciation.
(1)The value base for the purpose of depreciation shall be the Capital Cost of the asset admitted by the Commission. The Salvage value of the asset shall be considered as 10% and depreciation shall be allowed up to maximum of 90% of the Capital Cost Of the asset.(2)Depreciation per annum shall be computed on 'Straight Line Method'. The depreciation rate for the first 10 years of the Useful life shall be 7 % per annum and the remaining depreciation shall be spread over the remaining useful life of the project from 11th year onwards.(3)Depreciation shall be chargeable from the first year of commercial operation.
