Section 20 in Central Electricity Regulatory Commission (Fees and Charges of Regional Load Despatch Centre and other related matters) Regulations, 2019
20. Interest on Loan Capital.
(1)The loan determined in accordance with Regulation 16 shall be considered as gross normative loan for calculation of interest on loan.(2)The normative loan outstanding as on 01.04.2019 shall be worked out by deducting the cumulative repayment as admitted by the Commission upto 31.03. 2019 from the gross normative loan.(3)The repayment for respective year of the control period shall be deemed to be equal to the depreciation allowed for that year. In case of de-capitalization of assets, the repayment shall be adjusted by taking into account cumulative repayment on a pro-rata basis and the adjustment should not exceed cumulative depreciation recovered upto the date of de-capitalization of such asset.(4)The rate of interest shall be the weighted average rate of interest calculated on the basis of the actual loan portfolio at the beginning of each year applicable to the respective Regional Load Despatch Centre:Provided that if there is no actual loan for a particular year but normative loan is still outstanding, the last available weighted average rate of interest shall be considered;Provided further that if any of the Regional Load Despatch Centre does not have actual loan, then the weighted average rate of interest on the loan of Power System Operation Corporation Limited as a whole shall be considered.(5)The interest on loan shall be calculated on the normative average loan of the year by applying the weighted average rate of interest.(6)The Power System Operation Corporation Limited shall make every effort to re-finance the loan as long as it results in net savings on interest and in that event the costs associated with such re-financing shall be borne by the users and the net savings shall be shared between the users and the Power System Operation Corporation Limited in the ratio of 50:50. The changes to the terms and conditions of the loans shall be reflected from the date of such re-financing.Provided that the users shall not withhold any payment on account of the interest claimed by the users and the Power System Operation Corporation Limited during the pendency of any dispute arising out of re-financing of loan.
