Section 14(2) in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2013
(2)Interest Rate - (a) The loans arrived at in the manner indicated in the Regulation 13 shall be considered as gross normative loan for calculation for interest on loan. The normative loan outstanding as on April 1st of every year shall be worked out by deducting the cumulative repayment up to March 31st of previous year from the gross normative loan.(b)For the purpose of computation of tariff, the normative interest rate shall be considered as average Jammu and Kashmir Bank Base rate prevalent during the first six months of the previous year plus 300 basis points.(c)Notwithstanding any moratorium period availed by the generating company, the repayment of loan shall be considered from the first year of commercial operation of the project and shall be equal to the annual depreciation allowed.
