Section 17 in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2013
17. Interest on Working Capital.
(1)The Working Capital requirement in respect of wind energy projects, Small Hydro Power, Solar PV and Solar thermal power projects shall be computed in accordance with the following:Wind Energy / Small Hydro Power /Solar PV / Solar thermal(a)Operation & Maintenance expenses for one month;(b)Receivables equivalent to 2 (Two) months of energy charges for sale of electricity calculated on the normative Capacity Utilization Factor (CUF);(c)Maintenance spare @ 15% of operation and maintenance expenses(2)[ The Working Capital requirement in respect of Biomass power projects, Municipal Solid Waste, Refuse Derived Fuel based power projects and Non-Fossil fuel based co-generation projects shall be computed in accordance with the following clause :Biomass, Biogas Power, Municipal Solid Waste, Refuse Derived Fuel based power projects and Non-fossil fuel Co-generation(a)Fuel costs for four months equivalent to normative PLF;(b)Operation & Maintenance expense for one month;(c)Receivables equivalent to 2 (Two) months of fixed and variable charges for sale of electricity calculated on the target PLF;(d)Maintenance spare @ 15% of operation and maintenance expenses.](3)Interest on Working Capital shall be at interest rate equivalent to the average Jammu and Kashmir Bank Base Rate prevalent during the first six months of the previous year plus 350 basis points.
